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Latin America Trends report 2010


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Latin America Trends report 2010

  1. 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. 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. 3. LATIN AMERICA Internet UsageInternet Users in SelectCountries in LatinAmerica Brazil has the most Internet usersin Latin America with 31.9 millionas of September 2009 Mexico is the 2nd largest marketfor Internet usage in Latin America(14 million) The study reports that there were11.8 million people online inArgentina and 9 million in ColombiaCommunicating and WebSurfing are the MostPopular Online Activities The majority of Internet users inLatin America (77%) use the Webto communicate with others, eitherthrough email, instant messagingor social networks 76% of respondents visit websitesfor news, information,entertainment, work or school Interestingly, 28% of Internetusers download digital content,such as music, videos and graphicsCopyright ©2010 by Research and Management Page 3 WSI Internet Marketing Trends Report 2010
  4. 4. LATIN AMERICA Advertising SpendBrazil, Mexico andColombia are the LargestMarkets for Adspend According to ZenithOptimedia,Brazil is the region’s largest marketfor adspend $11.57 billion was spentadvertising in Brazil in 2008 Total advertising expenditure inMexico reached $5.43 billion,putting Mexico in 2nd place in termsof largest adspend Colombia falls close behind with$3.83 billion in total adspendAdvertising Spending inLatin America Rises Total advertising spending in LatinAmerica is expected to reach$31.33 billion 2010 and increaseeach year until 2012 In 2011, $33.31 billion will bespent advertising in Latin America ZenithOptimedia predicts that by2012, total adspend in the regionwill reach $35.62 billionCopyright ©2010 by Research and Management Page 4 WSI Internet Marketing Trends Report 2010
  5. 5. LATIN AMERICA Internet AdvertisingOnline AdvertisingSpending in Latin America In 2009, $690 million was spentadvertising online in Latin America, aconsiderable increase over the $537million that was spent in 2008 This year, we can expect to seeonline advertising in Latin Americareach $914 million Trends indicate that online adspend inthe region is expected to continue risingsteadilyThe Internet Continues toTake a Larger Share ofTotal Adspend Dollars This year, the Internet’s share oftotal adspend will reach 2.9% andincrease to 3.3% in 2011 By 2012, ZenithOptimediapredicts that 3.6% of totaladvertising dollars will be spentmarketing online As the Internet continues to takea larger share of total adspend,spending on traditional channelswill naturally declineCopyright ©2010 by Research and Management Page 5 WSI Internet Marketing Trends Report 2010
  6. 6. LATIN AMERICA Social MediaSocial Network Site Usersin Select Countries in LatinAmerica A study by comScore reports thatsocial networking usage in LatinAmerica has increased in severalcountries between 2007 and 2008 As of 2008, 85.3% of Internet usersin Brazil were also social networkusers (increase from 76% in 2007) 73% of the online population inMexico were also on the socialnetworks as of 2008 Almost 80% of the Colombianonline population used socialnetworking sites the same yearOnline Social NetworkAdvertising Spending According to eMarketer,approximately $10 million wasspent on social network advertisingin 2009 This year, online social networkadspend is expected to reachapproximately $15 million By 2011, about $18 million will beallocated toward advertising onsocial networks in Latin AmericaCopyright ©2010 by Research and Management Page 6 WSI Internet Marketing Trends Report 2010
  7. 7. BRAZIL Advertising SpendInternet Advertising Seesthe Most Growth in Brazil In 2009, Internet adspend growthreached 21%, while adspendgrowth on most other channelsdeclined or grew only marginally This year, spending growth willincrease across all channels,however the Internet will see thelargest increase (29.2%) By 2011, online adspend willgrow by 25% in Brazil, whilespending on traditional channelswill only grow between 3-5%Online Marketing ExceedsRadio Advertising In 2009, $502 million was spentadvertising on the Internet in Brazil This year, Internet advertisingspending will surpass radioadvertising ($649 million comparedto $558 million to be spent on radio) In 2011, $811 million will beallocated toward advertising onlineand only $586 million toward radio Trends indicate that Internetadspend is also quickly catching upto magazine adspendCopyright ©2010 by Research and Management Page 7 WSI Internet Marketing Trends Report 2010
  8. 8. BRAZIL Internet AdvertisingInternet AdspendContinues to Rise Internet advertising expenditureas well as spending growth in Brazilare expected to climb steadily According to ZenithOptimedia,online advertising will grow 25% in2011 and reach $811 million By 2012, online advertisingspending will reach $973 million,an increase of 20% over 2011Internet AdvertisingContinues to Take a LargerShare of Total Adspend Each year, the Internet will take upa larger share of total advertisingdollars in Brazil This year, 5% of total adspend willbe allocated toward the Internet andnext year, this will increase to 5.9% By 2012, 6.5% of total advertisingdollars in Brazil will be spentmarketing on the Internet Traditional marketing channels willsee a natural decline in adspendshare as the Internet’s sharecontinues to growCopyright ©2010 by Research and Management Page 8 WSI Internet Marketing Trends Report 2010
  9. 9. BRAZIL Social MediaSocial Networking Usagein Brazil Brazil is 2nd in the world in termsof average pages viewed per visitorin the social networking category According to comScore, theaverage social network user visitedon average 1,374 pages The same study also reports thatthere are approximately 24.3million social network site users inthe countryTop 10 Social NetworkingSites in Brazil The #1 social networking site inBrazil is orkut (22.85 million uniquevisitors as of September 2009) Facebook is the fastest growingsocial network with a 407% increasein unique visitors between 2008 and2009 Ning saw a considerable increasein usage as well during this period(329% increase in unique visitors) Twitter is the 3rd fastest growingsocial site with 5.24 million uniquevisitors in September 2009, a 120%increase over the previous yearCopyright ©2010 by Research and Management Page 9 WSI Internet Marketing Trends Report 2010
  10. 10. MEXICO Internet UsageMore People Are GoingOnline in Mexico This year, 35.6 million people inMexico will go online, consuming31.6% of the country’s totalpopulation In 2011, the Mexican onlinepopulation will increase to 39.5million (34.7% of total population) eMarketer projects that 37.4% ofMexico’s population will be onlinein 2012 (43.0 million people)Most Popular WebProperties in Mexico According to comScore, the mostpopular Web properties in Mexicoare based in the US The study reports that 10.79million unique visitors came toMicrosoft sites (84.6% reach) Google sites were ranked in 2ndplace with 10.36 million uniquevisitors coming to it, reaching 81.3%of the population In 3rd place are Yahoo! sites, whichreached 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. 11. MEXICO Internet AdvertisingOnline AdvertisingSpending in Mexico Internet marketing spending inMexico reached $139 million in2009, a $31 million increase overthe previous year In 2010, online advertisingspending in Mexico is expected toincrease again to $182 millionOnline AdvertisingOpportunity - Top 12 WebCategories in Mexico Mexico shows a strong focus oncommunication, such as email,instant messaging and socialnetworking with a reach of 73.8%,72.2% and 64.6% respectively 52.3% of the Mexican onlinepopulation visit blogs, while 51.3%visit reference sites Education sites reachedapproximately 43.3% of Internetusers and newspaper sites saw atotal reach of 35.0% The considerable popularity ofthese Web categories in Mexicopresent a great opportunity foronline advertising through thesetypes of communication channelsand in these industriesCopyright ©2010 by Research and Management Page 11 WSI Internet Marketing Trends Report 2010
  12. 12. MEXICO Social MediaTop Social NetworkingSites in Mexico and are 2of the most popular socialnetworking sites in Mexico with areach of 30.8% and 30.1%respectively Facebook falls in 3rd place with an18.9% reach, while MySpacereached 17.1% of the population Other social networks mentionedin the study include, and wamba.comMexico has a ClearAppetite for Multimedia According to statistics providedby comScore, multimedia is veryimportant to Mexico’s onlinelandscape 53.4% of the total population inMexico visit YouTube, putting thecountry behind only Canada andthe UK The worldwide average reach forYouTube is only 36.3%, meaningMexico’s engagement in YouTube isabove averageCopyright ©2010 by Research and Management Page 12 WSI Internet Marketing Trends Report 2010
  13. 13. COLOMBIA Advertising SpendInternet AdvertisingGrowth Exceeds TVAdvertising Growth In 2009, Internet and TVadvertising were the only channelsthat saw an increase in spendinggrowth in Colombia However, Internet adspendgrowth was higher at 7.3% with TVat 5.7% in 2009 In 2010 and 2011, online adspendgrowth will continue to remainhigher than traditional channels,which will only grow between 1-4%Advertising Expenditurein Colombia by Media ZenithOptimedia reports that in2009, $59 million was spentadvertising on the Internet inColombia This year, online advertising willincrease to $66 million and again in2011 to $73 million Though television advertising stilldominates in Colombia, Internetadspend growth trends indicatethat is it gaining more strengtheach yearCopyright ©2010 by Research and Management Page 13 WSI Internet Marketing Trends Report 2010
  14. 14. COLOMBIA Internet AdvertisingOnline Adspend GrowthRecovers in 2010 Though Internet advertisingspending growth declined in 2009to 7.3% (from 12.2% in 2008), itwill bounce back in 2010 This year, Internet adspend willgrow 11.2% and remain consistentat this rate in 2011 Online adspend growth will leveloff at 10.9% in 2012Internet AdvertisingSpending Climbs Steadily $59 million was spent advertisingonline in 2009, an increase of $4million over 2008 Advertisers in Colombia willspend $66 million on Internetadvertising this year This number is projected toincrease to $73 million and $81million in 2011 and 2012respectively Trends indicate that Internetadvertising is becoming morepopular in Colombia as moredollars are being allocated towardthis channelCopyright ©2010 by Research and Management Page 14 WSI Internet Marketing Trends Report 2010
  15. 15. COLOMBIA Social MediaColombia is Among theTop 10 in Terms of SocialNetworking Engagement According to a study bycomScore, Colombia was rankedamong the top 10 countriesworldwide with the highestengagement in social networking A social network visitor inColombia spent approximately 4.1hours per visit, placing the countryclose behind the US in terms ofaverage hours per visitor The study also reports that aColombian social network visitorviewed an average of 473 pagesColombia is Ranked Top 3for Facebook Usage Colombia is one of 3 countriesthat lead all others in Facebookpenetration worldwide comScore reports that 84.2% ofInternet users in Colombia also useFacebook The vast usage of Facebook andother social networking sites inColombia present a considerableopportunity for markers whoadvertise on these social portalsCopyright ©2010 by Research and Management Page 15 WSI Internet Marketing Trends Report 2010
  16. 16. ABOUT WSIWSI leads the global Internet industry offering best of breed digital marketing solutions tosuit the needs of multiple industries. The company has the world’s largest InternetConsultants’ network and a 100-person strong head office in Toronto, Canada. WSI InternetMarketing Consultants have helped thousands of small and medium-sized businesses realizetheir online marketing potential. By using innovative Internet technologies and advanceddigital marketing strategies, businesses can have a WSI Internet Marketing System tailoredto 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 listingunder the Technology category for 10 years in a row under the technology category. Withthe support and cooperation of its customers, franchise network, employees, suppliers andcharitable organizations, WSI aims to help make child poverty history through its globaloutreach program ( For more information about WSI’sofferings and business opportunities, please visit our website at information herein is the property of Research and Management Corporate (RAM). ©2010 RAM. All rights reserved.