Internet Marketing Trends for Latin America

TABLE OF CONTENTS
Executive Summary 2
Internet Usage 3
Advertising Spend 4
Internet Advertising 5
Social Media 6
Brazil
Advertising Spend 7
Social Media 9
Mexico
Source of all statistics:
Internet Usage 10
Social Media 12
Colombia
Advertising Spend 13
Social Media 15
About WSI 16

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

LATIN AMERICA Internet Usage

Internet 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 Colombia

Communicating 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


LATIN AMERICA Advertising Spend

Brazil, 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 adspend

Advertising 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


LATIN AMERICA Internet Advertising

Online 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
steadily

The 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, ZenithOptimedia
predicts 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


LATIN AMERICA Social Media

Social 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 year

Online 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


BRAZIL Advertising Spend

Internet Advertising Sees
the Most Growth in Brazil
In 2009, Internet adspend growth
reached 21%, while adspend
growth 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


BRAZIL Internet Advertising

Internet Adspend
Continues 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 2011

Internet 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 adspend
share as the Internet’s share
continues to grow


BRAZIL Social Media

Social 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 country

Top 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


MEXICO Internet Usage

More 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 2nd
place 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)


MEXICO Internet Advertising

Online 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 million

Online 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


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.com

Mexico 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


COLOMBIA Advertising Spend

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 adspend
growth was higher at 7.3% with TV
at 5.7% in 2009

In 2010 and 2011, online adspend
growth 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


COLOMBIA Internet Advertising

Online 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 2012

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


COLOMBIA Social Media

Colombia 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 pages

Colombia is Ranked Top 3
for Facebook Usage
Colombia is one of 3 countries
that lead all others in Facebook
penetration 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


ABOUT WSI
WSI 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.

Internet Marketing Trends for Latin America

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