¡¡LA ERA DEL VIDEO ONLINE ESTÁ AQUÍ!! Y en América Latina, no nos quedamos atrás! Crecemos a pasos agigantados hacia la tendencia global que posiciona al Video Online como el mejor medio de engagement y resultados. Chéca este estudio! Isela Abarca Ad Sales Manager isela@impaktu.com www.impaktu.com Skype: isela.abarca

1. Tuning In:
The Rise of Online Video
in Latin America
Festival of Media LatAm | 24 September 2012
Gian Fulgoni Executive Chairman and Co-founder, comScor

2. 1 Online Video Viewing in Latin America
2 What Can We Learn from the U.S.?
3 Some Thoughts for the Future

3. The U.S. is No Longer the Center of the Online Universe
U.S. Internet Population vs. Rest of the World
Rest of the
World
Middle
East Latin Africa,
America, 8,8%
9,0%
34%
87%
U.S.
66%
13%
1996
Distribution of Worldwide Internet Audience
North
America,
14,6%
Asia
Pacific,
41,3%
Asia Pacific
Europe,
26,4%
2011
 In 1996, 2/3 of world’s Internet population was in the US, yet today Asia Pacific is the largest region
with over 40% of online population.
 Many emerging regions likely to bypass old modes, skipping dial-up to go straight to broadband,
making multimedia, video, and collaborative content immediately accessible.
 Early adoption of mobile web in addition to PC web will likely be popular in many of these highgrowth areas.
Source: comScore Media Metrix, Visitors Age 15+ Home/Work Location, Dec-2011

4. Latin America is World’s Fastest-Growing Region
 Growth expected to continue as
Worldwide Online Population
(Millions)
home broadband penetration
increases in Asia and Latin
America
+8%
 Growth in developing regions
1.383
likely to continue as people move
from shared-access to home &
work use
Jun-11
+8%
568 613
2011 Jun
2012 Jun
Jun-12
+8%
369 398
+3%
206 213
Asia Pacific
1.491
Europe
North America
+11%
120 133
Middle East Africa
+12%
119 134
Latin America
Source: comScore Media Metrix, Visitors Age 15+ Home/Work Location, June 2011 vs. June 2012

5. Focus: Latin America
Latin America
Argentina
Brazil
Chile
Mexico
July 2010 Penetration Data
V0910

6. Online Video’s Blockbuster Year
Videos Viewed Grew by Double Digits Across LatAm Region
Growth in Video Viewing in 2011
Total Videos Viewed
Percent Growth
(000) Dec-2011
vs. Dec. 2010
BRAZIL
4.7 Billion
+74%
MEXICO
3.0 Billion
+80%
ARGENTINA
1.5 Billion
+75%
CHILE
1.0 Billion
+91%

7. Driven by YouTube, Google Sites Account for
More than 60% of Videos Viewed in LatAm
MEXICO
CHILE
Videos
(Millions)
Share of
Videos
2,164
62%
Google Sites
927
80%
VEVO
219
6%
VEVO
58
5%
Viacom Digital
54
2%
Viacom Digital
17
2%
1
Google Sites
Videos Share of
(Millions) Videos
BRAZIL
ARGENTINA
Videos
(Millions)
Share of
Videos
4,435
75%
Google Sites
988
63%
Globo
359
6%
VEVO
65
3%
VEVO
193
3%
Facebook.com
22
1%
Google Sites
Videos
Share of
(Millions) Videos
Source: comScore Video Metrix, July-2012

8. Video Consumption in LatAm skews younger … with under 34
age segment accounting for almost 60% of videos viewed
% Composition of Video Time Spent
28%
30%
21%
14%
8%
15-24
25-34
35-44
45-54
55+
Source: comScore Video Metrix, July-2012

9. Reach of online video is slightly greater in the LatAm
region than Worldwide
Monthly Online Video Reach / Web Population
Worldwide
84%
USA
85%
Argentina
Brazil
96%
81%
Chile
Mexico
92%
82%
Source: comScore Video Metrix, July-2012

10. Room for growth in video consumption in LatAm
Videos per Viewer
Worldwide
169,5
USA
Argentina
Brazil
Chile
Mexico
245,9
120,0
139,2
168,6
151,2
Source: comScore Video Metrix, July-2012

11. Room for growth in video engagement in LatAm
Monthly Hours per Viewer
Worldwide
19,40
USA
Argentina
Brazil
Chile
Mexico
22,05
11,32
11,61
12,45
13,63
Source: comScore Video Metrix, July-2012

12. While growing rapidly in LatAm,
time spent watching online video
equivalent to only a percentage point
or two of the time spent watching TV

13. What Can We Learn from the U.S.?

14. IAB says U.S. online ad spend is now larger than newspapers,
magazines and radio, and equivalent to 46% of TV
+22%
vs. year ago
10X Faster
Growth
Than
All Media
$31.7 Billion
U.S. Online
Ad Spending
in 2011
SOURCE: IAB for Internet Advertising Revenue and KANTAR for Total Mediaedia
Measurement

15. In the U.S, time spent watching traditional TV is essentially flat while
online video is growing strongly
US Monthly Total Hours (millions) Spent Watching TV
vs. Online Video
-0.6%
44.581
Video now equals 5% of total time
spent watching TV
44.334
Monthly Total Hours (millions)
in Q4 2010
Monthly Total Hours (millions)
in Q4 2011
+74%
1.338
TV
2.321
Online Video
SOURCE: TV: Nielsen Cross Platform Report – Q4 2011. Online Video: comScore Video Metrix

16. IAB says U.S. online video ad spending is surging
+40%
vs. year ago
$1.8 Billion
U.S. Online
Video Ad
Spending
in 2011
Equivalent
to 6% of all
online ad
spending

17. Online ad spend in Latin America* is growing twice as
fast as in the U.S.
+42%
vs. year ago
3.5X Faster
Growth
Than
All Media
Latin
America
$2.5 Billion
Online
Ad Spending
in 2011
*Argentina, Brazil, Chile, Colombia, Mexico, Peru
SOURCE: IAB for Online and Various for Total Media dia
Measurement 2011

18. Online video allows convenient viewing of TV content and
is an incremental audience – it’s not about avoiding ads
 Recent comScore study sought to answer: why do viewers choose to watch
TV content online?
– NOT out of ad-avoidance
– Main factor is convenience and time-shifting
Missed episode on TV
71%
Convenience
57%
Less ads
38%
Like to see past episodes
25%
Prefer the online experience
Don’t subscribe to cable/don't have a TV
13%
7%

19. Online viewers of TV programs are open to more ads – at least 6.5 minutes
per TV hour
Optimal length of commercials for an hour of TV viewed online
100,0
80,0
60,0
40,0
20,0
0,0
1 min
2 min
3 min
4 min
Negligible
5 min
6 min
7 min
Minimal
8 min
9 min 10 min 11 min 12 min 13 min 14 min 15 min
Long Enough
Too Long
*Respondents were asked questions on a sliding scale from ‘how much advertising is so
negligible that it would not interfere at all’, through to ‘how much advertising is too long and
would interfere completely with the viewing experience’?
Base sizes:
Total=640

20. A CBS Perspective on TV and Video Advertising from 2009

21. CBS: Online video ads can demand a premium price because
of heightened consumer attention and more precise targeting

22. CBS: Even with lower ad loads than TV but a premium price, video
ads can have same value as TV ads

23. The Limitation of TV: Brands Trying to Reach their Target with
TV Alone Hit A Plateau of Diminishing Returns
Total Reach and Effective Reach for a TV
Campaign as a Function of Cost
100
87,9
85,1
90
Total Reach
80
70
74,1
67,8
60
50
Effective Reach
40
30
20
10
0
0
2.500
5.000
7.500
Cost ($000)
10.000
12.500
15.000
Typically 30%+ of Target Audience is not Effectively reached

24. Adding Branding Advertising to TV With Online Video Builds
Reach and Effective Reach
Impact of a 90/10 Allocation
Media Plan
GRPs
Total Reach
Effective
Reach
TV Only
1,000
85%
68%
TV (90%)
900
84%
66%
Online Video (10%)
500
64%
44%
TV + Online Video
1,400
90%
84%
400
5%
16%
TV + Video Combination
TV Only vs.
90% TV + 10% Online Video
Source: comScore simulation using
single source TV and Internet data

25. Summary Thoughts
1
Online video viewing in LatAm is surging
2
Lessons from U.S.
Online video viewing of TV content incremental to TV
Consumers will accept online video ad loads of 10%+
Premium pricing possible for video ads
3 Online video advertising can add effective reach to a TV
campaign –especially among younger age segments