Internet Marketing Trends for Latin America

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  • 1. TABLE  OF  CONTENTS Executive  Summary 2 Internet  Usage 3 Advertising  Spend 4 Internet  Advertising 5 Social  Media   6 Brazil Advertising  Spend 7 Internet  Advertising 8 Social  Media 9 MexicoSource  of  all  statistics: Internet  Usage 10 Internet  Advertising 11 Social  Media   12 Colombia Advertising  Spend   13 Internet  Advertising 14 Social  Media 15 About  WSI 16
  • 2. LATIN  AMERICA Executive  Summary 2010  – A  Year  of  Economic  Recovery It  is  safe  to  say  that  2009  was  a  year  of  economic  crisis  for   markets  all  over  the  world.  As  the  "R"  word  resonated  in   the  minds  of  business  owners  everywhere,  they  began   tightening  their  budgets  to  adapt  to  the  economic   challenges. Participation  in  the  recession  is  a  choice,  and  companies   must  challenge  themselves  to  evaluate  their  businesses  and   understand  how  they  can  change  in  order  to  surpass  the   economic  conditions. Though  2009  was  a  year  of  hardship,  many  believe  that   2010  will  be  a  year  of  economic  recovery.  Over  the  past   year,  Internet  advertising  spending  in  Latin  America   increased,  as  spending  through  traditional  advertising   venues,  such  as  newspaper,  radio  and  television  shrank.   Trends  indicate  that  the  Internet  will  remain  strong  in  2010. The  #1  fastest  growing  advertising  channel  is  the  Internet,   and  businesses  need  to  re-­‐invent  their  marketing  strategies   and  capitalize  on  this  medium  in  order  to  rise  above  the   economic  challenges. This  Internet  Marketing  Trends  Report  is  a  brief  synopsis  of   the  current    online  marketing  activities  in  Latin  America,  as   well  as  the  projected  trends  for  the  coming  years.  The   report  covers  Internet  usage  and  penetration,  total   advertising  spending,  Internet  marketing  spending  and   social  media  trends,  specifically  for  the  region’s  largest   markets  for  adspend -­‐ Brazil,  Mexico  and  Colombia. For  more  information  about  WSI’s  Internet  marketing  services,   please  contact  your  local  WSI  Consultant.Copyright  ©2010  by  Research  and  Management Page 2 WSI  Internet  Marketing  Trends  Report  2010
  • 3. LATIN  AMERICA Internet  UsageInternet  Users  in  Select  Countries  in  Latin  America Brazil  has  the  most  Internet  users  in  Latin  America  with  31.9  million  as  of  September  2009 Mexico  is  the  2nd largest  market  for  Internet  usage  in  Latin  America  (14  million) The  study  reports  that  there  were  11.8  million  people  online  in  Argentina  and  9  million  in  ColombiaCommunicating  and  Web  Surfing  are  the  Most  Popular  Online  Activities The  majority  of  Internet  users  in  Latin  America  (77%)  use  the  Web  to  communicate  with  others,  either  through  email,  instant  messaging  or  social  networks 76%  of  respondents  visit  websites  for  news,  information,  entertainment,  work  or  school Interestingly,  28%  of  Internet  users  download  digital  content,  such  as  music,  videos  and  graphics Copyright  ©2010  by  Research  and  Management Page 3 WSI  Internet  Marketing  Trends  Report  2010
  • 4. LATIN  AMERICA Advertising  SpendBrazil,  Mexico  and  Colombia  are  the  Largest  Markets  for  Adspend According  to  ZenithOptimedia,  Brazil  is  the  region’s  largest  market  for  adspend $11.57  billion  was  spent  advertising  in  Brazil  in  2008 Total  advertising  expenditure  in  Mexico  reached  $5.43  billion,  putting  Mexico  in  2nd place  in  terms  of  largest  adspend Colombia  falls  close  behind  with  $3.83  billion  in  total  adspendAdvertising  Spending  in  Latin  America  Rises Total  advertising  spending  in  Latin  America  is  expected  to  reach  $31.33  billion  2010  and  increase  each  year  until  2012 In  2011,  $33.31  billion  will  be  spent  advertising  in  Latin  America ZenithOptimedia predicts  that  by  2012,  total  adspend in  the  region  will  reach  $35.62  billion Copyright  ©2010  by  Research  and  Management Page 4 WSI  Internet  Marketing  Trends  Report  2010
  • 5. LATIN  AMERICA Internet  AdvertisingOnline  Advertising  Spending  in  Latin  America In  2009,  $690  million  was  spent  advertising  online  in  Latin  America,  a  considerable  increase  over  the  $537  million  that  was  spent  in  2008 This  year,  we  can  expect  to  see  online  advertising  in  Latin  America  reach  $914  million Trends  indicate  that  online  adspend in  the  region  is  expected  to  continue  rising  steadilyThe  Internet  Continues  to  Take  a  Larger  Share  of  Total  Adspend Dollars This  year,  the  Internet’s  share  of  total  adspend will  reach  2.9%  and  increase  to  3.3%  in  2011 By  2012,  ZenithOptimediapredicts  that  3.6%  of  total  advertising  dollars  will  be  spent  marketing  online As  the  Internet  continues  to  take  a  larger  share  of  total  adspend,  spending  on  traditional  channels  will  naturally  decline Copyright  ©2010  by  Research  and  Management Page 5 WSI  Internet  Marketing  Trends  Report  2010
  • 6. LATIN  AMERICA Social  MediaSocial  Network  Site  Users  in  Select  Countries  in  Latin  America A  study  by  comScore reports  that  social  networking  usage  in  Latin  America  has  increased  in  several  countries  between  2007  and  2008 As  of  2008,  85.3%  of  Internet  users  in  Brazil  were  also  social  network  users  (increase  from  76%  in  2007) 73%  of  the  online  population  in  Mexico  were  also  on  the  social  networks  as  of  2008 Almost  80%  of  the  Colombian  online  population  used  social  networking  sites  the  same  yearOnline  Social  Network  Advertising  Spending   According  to  eMarketer,  approximately  $10  million  was  spent  on  social  network  advertising  in  2009 This  year,  online  social  network  adspend is  expected  to  reach  approximately  $15  million By  2011,  about  $18  million  will  be  allocated  toward  advertising  on  social  networks  in  Latin  America Copyright  ©2010  by  Research  and  Management Page 6 WSI  Internet  Marketing  Trends  Report  2010
  • 7. BRAZIL Advertising  SpendInternet  Advertising  Sees  the  Most  Growth  in  Brazil In  2009,  Internet  adspend growth  reached  21%,  while  adspendgrowth  on  most  other  channels  declined  or  grew  only  marginally This  year,  spending  growth  will  increase  across  all  channels,  however  the  Internet  will  see  the  largest  increase  (29.2%) By  2011,  online  adspend will  grow  by  25%  in  Brazil,  while  spending  on  traditional  channels  will  only  grow  between  3-­‐5%Online  Marketing  Exceeds  Radio  Advertising In  2009,  $502  million  was  spent  advertising  on  the  Internet  in  Brazil This  year,  Internet  advertising  spending  will  surpass  radio  advertising  ($649  million  compared  to  $558  million  to  be  spent  on  radio) In  2011,  $811  million  will  be  allocated  toward  advertising  online  and  only  $586  million  toward  radio Trends  indicate  that  Internet  adspend is  also  quickly  catching  up  to  magazine  adspend Copyright  ©2010  by  Research  and  Management Page 7 WSI  Internet  Marketing  Trends  Report  2010
  • 8. BRAZIL Internet  AdvertisingInternet  AdspendContinues  to  Rise Internet  advertising  expenditure  as  well  as  spending  growth  in  Brazil  are  expected  to  climb  steadily According  to  ZenithOptimedia,  online  advertising  will  grow  25%  in  2011  and  reach  $811  million   By  2012,  online  advertising  spending  will  reach  $973  million,  an  increase  of  20%  over  2011Internet  Advertising  Continues  to  Take  a  Larger  Share  of  Total  Adspend Each  year,  the  Internet  will  take  up  a  larger  share  of  total  advertising  dollars  in  Brazil This  year,  5%  of  total  adspend will  be  allocated  toward  the  Internet  and  next  year,  this  will  increase  to  5.9% By  2012,  6.5%  of  total  advertising  dollars  in  Brazil  will  be  spent  marketing  on  the  Internet Traditional  marketing  channels  will  see  a  natural  decline  in  adspendshare  as  the  Internet’s  share  continues  to  grow Copyright  ©2010  by  Research  and  Management Page 8 WSI  Internet  Marketing  Trends  Report  2010
  • 9. BRAZIL Social  MediaSocial  Networking  Usage  in  Brazil Brazil  is  2nd in  the  world  in  terms  of  average  pages  viewed  per  visitor  in  the  social  networking  category According  to  comScore,  the  average  social  network  user  visited  on  average  1,374  pages The  same  study  also  reports  that  there  are  approximately  24.3  million  social  network  site  users  in  the  countryTop  10  Social  Networking  Sites  in  Brazil The  #1  social  networking  site  in  Brazil  is  orkut (22.85  million  unique  visitors  as  of  September  2009) Facebook is  the  fastest  growing  social  network  with  a  407%  increase  in  unique  visitors  between  2008  and  2009   Ning saw  a  considerable  increase  in  usage  as  well  during  this  period  (329%  increase  in  unique  visitors) Twitter  is  the  3rd fastest  growing  social  site  with  5.24  million  unique  visitors  in  September  2009,  a  120%  increase  over  the  previous  year Copyright  ©2010  by  Research  and  Management Page 9 WSI  Internet  Marketing  Trends  Report  2010
  • 10. MEXICO Internet  UsageMore  People  Are  Going  Online  in  Mexico This  year,  35.6  million  people  in  Mexico  will  go  online,  consuming  31.6%  of  the  country’s  total  population In  2011,  the  Mexican  online  population  will  increase  to  39.5  million  (34.7%  of  total  population) eMarketer projects  that  37.4%  of  Mexico’s  population  will  be  online  in  2012  (43.0  million  people)Most  Popular  Web  Properties  in  Mexico   According  to  comScore,  the  most  popular  Web  properties  in  Mexico  are  based  in  the  US The  study  reports  that  10.79  million  unique  visitors  came  to  Microsoft  sites  (84.6%  reach) Google  sites  were  ranked  in  2ndplace  with  10.36  million  unique  visitors  coming  to  it,  reaching  81.3%  of  the  population In  3rd place  are  Yahoo!  sites,  which  reached  54.6%  of  the  population  (6.97  million  unique  visitors) Copyright  ©2010  by  Research  and  Management Page 10 WSI  Internet  Marketing  Trends  Report  2010
  • 11. MEXICO Internet  AdvertisingOnline  Advertising  Spending  in  Mexico Internet  marketing  spending  in  Mexico  reached  $139  million  in  2009,  a  $31  million  increase  over  the  previous  year In  2010,  online  advertising  spending  in  Mexico  is  expected  to  increase  again  to  $182  millionOnline  Advertising  Opportunity  -­‐ Top  12  Web  Categories  in  Mexico Mexico  shows  a  strong  focus  on  communication,  such  as  email,  instant  messaging  and  social  networking  with  a  reach  of  73.8%,  72.2%  and  64.6%  respectively 52.3%  of  the  Mexican  online  population  visit  blogs,  while  51.3%  visit  reference  sites Education  sites  reached  approximately  43.3%  of  Internet  users  and  newspaper  sites  saw  a  total  reach  of  35.0% The  considerable  popularity  of  these  Web  categories  in  Mexico  present  a  great  opportunity  for  online  advertising  through  these  types  of  communication  channels  and  in  these  industries Copyright  ©2010  by  Research  and  Management Page 11 WSI  Internet  Marketing  Trends  Report  2010
  • 12. MEXICO Social  Media  Top  Social  Networking  Sites  in  Mexico hi5.com  and  metroflog.com  are  2  of  the  most  popular  social  networking  sites  in  Mexico  with  a  reach  of  30.8%  and  30.1%  respectively Facebook falls  in  3rd place  with  an  18.9%  reach,  while  MySpace  reached  17.1%  of  the  population Other  social  networks  mentioned  in  the  study  include  sonico.com,  fotolog.com  and  wamba.comMexico  has  a  Clear  Appetite  for  Multimedia According  to  statistics  provided  by  comScore,  multimedia  is  very  important  to  Mexico’s  online  landscape 53.4%  of  the  total  population  in  Mexico  visit  YouTube,  putting  the  country  behind  only  Canada  and  the  UK The  worldwide  average  reach  for  YouTube  is  only  36.3%,  meaning  Mexico’s  engagement  in  YouTube  is  above  average Copyright  ©2010  by  Research  and  Management Page 12 WSI  Internet  Marketing  Trends  Report  2010
  • 13. COLOMBIA Advertising  SpendInternet  Advertising  Growth  Exceeds  TV  Advertising  Growth In  2009,  Internet  and  TV  advertising  were  the  only  channels  that  saw  an  increase  in  spending  growth  in  Colombia However,  Internet  adspendgrowth  was  higher  at  7.3%  with  TV  at  5.7%  in  2009 In  2010  and  2011,  online  adspendgrowth  will  continue  to  remain  higher  than  traditional  channels,  which  will  only  grow  between  1-­‐4%Advertising  Expenditure  in  Colombia  by  Media   ZenithOptimedia reports  that  in  2009,  $59  million  was  spent  advertising  on  the  Internet  in  Colombia This  year,  online  advertising  will  increase  to  $66  million  and  again  in  2011  to  $73  million Though  television  advertising  still  dominates  in  Colombia,  Internet  adspend growth  trends  indicate  that  is  it  gaining  more  strength  each  year Copyright  ©2010  by  Research  and  Management Page 13 WSI  Internet  Marketing  Trends  Report  2010
  • 14. COLOMBIA Internet  AdvertisingOnline  Adspend Growth  Recovers  in  2010 Though  Internet  advertising  spending  growth  declined  in  2009  to  7.3%  (from  12.2%  in  2008),  it  will  bounce  back  in  2010 This  year,  Internet  adspend will  grow  11.2%  and  remain  consistent  at  this  rate  in  2011 Online  adspend growth  will  level  off  at  10.9%  in  2012Internet  Advertising  Spending  Climbs  Steadily   $59  million  was  spent  advertising  online  in  2009,  an  increase  of  $4  million  over  2008 Advertisers  in  Colombia  will  spend  $66  million  on  Internet  advertising  this  year This  number  is  projected  to  increase  to  $73  million  and  $81  million  in  2011  and  2012  respectively Trends  indicate  that  Internet  advertising  is  becoming  more  popular  in  Colombia  as  more  dollars  are  being  allocated  toward  this  channel Copyright  ©2010  by  Research  and  Management Page 14 WSI  Internet  Marketing  Trends  Report  2010
  • 15. COLOMBIA Social  MediaColombia  is  Among  the  Top  10  in  Terms  of  Social  Networking  Engagement According  to  a  study  by  comScore,  Colombia  was  ranked  among  the  top  10  countries  worldwide  with  the  highest  engagement  in  social  networking A  social  network  visitor  in  Colombia  spent  approximately  4.1  hours  per  visit,  placing  the  country  close  behind  the  US  in  terms  of  average  hours  per  visitor The  study  also  reports  that  a  Colombian  social  network  visitor  viewed  an  average  of  473  pagesColombia  is  Ranked  Top  3  for  Facebook Usage Colombia  is  one  of  3  countries  that  lead  all  others  in  Facebookpenetration  worldwide comScore reports  that  84.2%  of  Internet  users  in  Colombia  also  use  Facebook The  vast  usage  of  Facebook and  other  social  networking  sites  in  Colombia  present  a  considerable  opportunity  for  markers  who  advertise  on  these  social  portals Copyright  ©2010  by  Research  and  Management Page 15 WSI  Internet  Marketing  Trends  Report  2010
  • 16. ABOUT  WSIWSI  leads  the  global  Internet  industry  offering  best  of  breed  digital  marketing  solutions  to  suit  the  needs  of  multiple  industries.    The  company  has  the  world’s  largest  Internet  Consultants’  network  and  a  100-­‐person  strong  head  office  in  Toronto,  Canada.  WSI  Internet  Marketing  Consultants  have  helped  thousands  of  small  and  medium-­‐sized  businesses  realize  their  online  marketing  potential.  By  using  innovative  Internet  technologies  and  advanced  digital  marketing  strategies,  businesses  can  have  a  WSI  Internet  Marketing  System  tailored  to  their  individual  needs  to  elevate  their  Internet  presence  and  profitability  to  new  levels.  The  company  has  held  the  Number  1  spot  in  Entrepreneur  Magazine’s  Franchise  500  listing  under  the  Technology  category  for  10  years  in  a  row  under  the  technology  category.  With  the  support  and  cooperation  of  its  customers,  franchise  network,  employees,  suppliers  and  charitable  organizations,  WSI  aims  to  help  make  child  poverty  history  through  its  global  outreach  program  (www.makechildpovertyhistory.org).  For  more  information  about  WSI’s  offerings  and  business  opportunities,  please  visit  our  website  at  www.wsicorporate.com.The  information  herein  is  the  property  of  Research  and  Management  Corporate  (RAM). ©2010  RAM.  All  rights  reserved.