|Total Online Population (000's) in 2012:||42,000
|Percentage of Population Online in 2012:||36.5%|
There were 42,000,000 internet users in Mexico (representing 36.5% of the population) at mid-year 2012, according to Internet World Stats. (Internet World Stats, December 2012)
With a population totalling 115 million in 2012 and the largest Spanish-speaking market in the world, eMarketer estimates that internet adoption will reach 40.5% in Mexico in 2012, for a total of 46.6 million users. That is lower than the average internet user penetration rate for Latin America overall, but still a significant number of users going online.
Internet user penetration in Mexico, 2011-2016:
- 2011: 35.5%
- 2012: 40.5%
- 2013: 44.5%
- 2014: 48.0%
- 2015: 51.1%
- 2016: 53.8%
(eMarketer, July 2012)
Though internet penetration in Mexico is relatively low, 40%, internet users are highly engaged with the web, according to the November 2011 Interactive Advertising Bureau México (IAB México) report "Digital Media Consumption Study of Mexican Internet Users 2011" conducted by Millward Brown.
The report found that 33% of internet users spent at least five hours a day online during August 2011. Another 40% used the internet for between two to five hours per day.
Internet users in Mexico are particularly interested in entertainment websites. According to the March 2012 comScore Media Metrix report "Futuro Digital-Latinoamérica 2012," the country ranked fourth in the region in time spent on entertainment sites, with 3.8 hours per user. Only Peru (4.3), Colombia (4.1) and Chile (4.1) showed higher engagement in this category. (eMarketer, May 2012)
Mexico ranked as the second largest online market in Latin America with nearly 17 million visitors in September 2010, according to comScore. This represents an increase of 21% compared to the previous year. (comScore, December 2010)
There were 15.5 million home and work internet users age 15 and older in Mexico in March 2010, an increase of 20% from the previous year, making it one of the fastest-growing markets, according to comScore. Microsoft Sites ranked as the top online property in Mexico reaching more than 90% of the online population, followed by Google Sites, Yahoo! Sites and Facebook.
In March, the average internet visitor in Mexico spent 28 hours online (up 7.5%), consumed 1,898 pages of content (up 18%) and went online 49 times during the month (up 18.6%).
Mexico internet market, March 2010 (Total Mexico Internet Audience, Age 15+ (Home & Work Locations):
- Total unique visitors: 15,462,000 (+20% compared to March 2009)
- Total visits: 758,923,000 (+42%)
- Average minutes per visitor: 1,687.8 (+7.5%)
- Average pages per visitor: 1.898 (+18%)
- Average visits per visitor: 49.1 (+18.6%)
Among users age 15+, Microsoft Sites ranked as the top online property in Mexico with 14.3 million visitors, up 29% from the previous year, followed by Google Sites with 14.2 million visitors. Yahoo! Sites grabbed the #3 spot with 9 million visitors, followed by Facebook.com with 8.7 million visitors, more than triple the number of visitors from the previous year, as the social networking site solidified its popularity in the market. Online properties native to Latin America including Mercado Libre (5 million visitors), Batanga (nearly 5 million visitors), and Taringa.net (4.7 million visitors) also ranked among the top ten.
Top internet properties based on unique visitors, March 2010 - total Mexico internet audience, Age 15+ (Home & Work Locations):
Total internet: total audience: 15,462,000 (+20%)
- Microsoft Sites: 14,268,000 (+29%)
- Google Sites: 14,218,000 (+32%)
- Yahoo! Sites: 9,003,000 (+23%)
- Facebook.com: 8,736,000 (+224%)
- Wikimedia Foundation Sites: 7,312,000 (+35%)
- WordPress: 5,222,000 (+45%)
- MercadoLibre: 5,044,000 (-18%)
- Batanga: 4,975,000 (+10%)
- Taringa.net: 4,669,000 (+103%)
- HI5.com: 4,197,000 (+2%)
(comScore, May 2010)
UGC and Social Networking
There were 11.7 million active Twitter users in Mexico during Q2 of 2012, according to a September 2012 GlobalWebIndex report. GlobalWebIndex defined active Twitter users as those who used or contributed to the platform at least once a month using any device.
Active Twitter users in selected countries worldwide, Q2 2012:
- China: 35.5 million
- India: 33.0 million
- US: 22.9 million
- Brazil: 19.6 million
- Mexico: 11.7 million
- UK: 6.6 million
- Argentina: 6.3 million
- Spain: 5.0 million
- Italy: 3.1 million
- Germany: 2.4 million
- France: 2.2 million
By comparison, Mente Digital estimated there were 11.9 million Twitter users in Mexico in June 2012, of which 8.3 million were active users. The Mexico City-based social media agency defined active Twitter users as brand or personal Twitter accounts used at least once in the last 60 days.
Other results of the GlobalWebIndex study confirmed Twitter's relevance. During Q2 2012, 44% of users in Mexico shared personal photos via Twitter, trailing only China (61%) and India (49%) among the nations included in the report. And emphasizing the importance of the social network as a listening post for marketers, 32% of Twitter users in Mexico made comments about brands. (eMarketer, September 2012)
Internet users in Mexico have taken to social networking sites in large numbers since 2009, bringing the country's plaza culture to Facebook and Twitter, as well as to hi5, which got an early boost because it offered a Spanish interface.
Facebook currently dominates the social landscape. eMarketer estimates the number of Facebook users in Mexico will approach 28 million in 2012, for a penetration of 92% among social network users. Though growth will be slower as the market matures, the user base for the No. 1 social network in Mexico is expected to expand at robust double-digit rates through 2014.
Facebook users in Mexico, 2010-2014:
- 2010: 15.2 million (+129.2% change)
- 2011: 21.0 million (+38.1%)
- 2012: 27.8 million (+32.4%)
- 2013: 32.7 million (+17.6%)
- 2014: 37.7 million (+15.2%)
Offering further evidence of Facebook's pre-eminence in Mexico, an Interactive Bureau México (IAB México) and Millward Brown survey of social network users in Mexico conducted in late 2011 found that 94% used Facebook, while 45% used Twitter.
Other services that had been popular, such as hi5 and Myspace, have seen sharp declines. But hi5 maintains a loyal audience among online gamers, and Myspace has adherents among Mexico's relatively small music community. (eMarketer, August 2012)
Although social media adoption is naturally limited by internet adoption, internet users in Mexico have embraced social networks more enthusiastically than individuals in other countries, according to eMarketer. The number of social network users in Mexico will reach 30.3 million in 2012, accounting for 65% of internet users, according to eMarketer.
Social network users and penetration in Mexico, 2010-2014:
- 2010: 20.0 million (57.3% of internet users)
- 2011: 23.7 million (58.6%)
- 2012: 30.3 million (65.0%)
- 2013: 35.2 million (68.0%)
- 2014: 40.0 million (71.0%)
But social adoption is capped by economic realities, according to eMarketer. Roughly half the population of Mexico falls below the poverty line. Internet and social network usage among the lowest earning of Mexico's population is extremely rare, and there are scant signs of improvement in the near future.
eMarketer expects social network usage to grow at double-digit rates in the coming years. (eMarketer, July 2012)
Social networks were second only to search engines as the type of website where internet users in Mexico recalled seeing online ads, according to the May 2012 Asociación Mexicana de Internet (AMIPCI) and ELOGIA study "Hábitos de los Usuarios de Internet en México".
While two-thirds of web users recalled seeing search ads, social networks, at 57%, were not far behind, and way ahead of ads on ecommcerce sites (18%) and those on news sites (17%). The same survey found that 53% of social network users had a positive opinion of the ads served to them via social networks, while only 17% disliked them.
The March 2012 Ipsos OTX and Ipsos Global @dvisor study "Socialogue" found that 55% of internet users in Mexico had recommended a brand they "liked" or followed on a social network, putting users in Mexico ahead of those in Argentina (54%) and Brazil (51%) in this category. (eMarketer, July 2012)
Social networking in Mexico will increase by 17.9% in 2012, making it the fifth-fastest-growing market worldwide, according to eMarketer estimates. Much of this expansion will come from Facebook, which is expected to reach 25.6 million users in the country by the end of 2012.
Top five social networking countries, ranked by growth, 2012:
1. India: +51.7% change in number of users
2. Indonesia: +51.6%
3. China: +19.9%
4. Mexico: +17.9%
5. Brazil: +14.4%
Not only is the number of social network users growing, but those users are also highly engaged on the sites. According to the Asociación Mexicana de Internet (AMIPCI) study "Redes Sociales en México y Latinoamérica 2011" conducted by Elogia, 48% of Facebook users and 34% of YouTube users in Mexico visited the respective websites several times a day.
Video consumption and video advertising through social media are particularly interesting areas of engagement among social networkers. In December 2012, the Garritz Online Media and comScore report "Online Video Consumption Study, Mexico 2012" found that 86% of online video viewers watched video on YouTube and 39% did so on Facebook. (eMarketer, April 2012)
Google Sites led as the most-visited internet property in the market reaching more than 90% of all online users, followed by Microsoft Sites (85%) and Facebook.com (82%), according to a study by comScore, Inc .
The study also found that Social Networking now ranks as the most popular online category by total minutes, accounting for nearly 30%of all time spent online during July 2011, up from 12.8% a year ago. (comScore, August 2011)
Ecommerce in Mexico expanded faster than anticipated in 2012, spurred by widespread increases in internet and mobile usage. But online purchasing is far less common in Mexico than in other large Latin American markets, and nowhere near maturity, according to a eMarketer report.
B2C eCommerce sales in Mexico, 2010-2016:
- 2010: $2.85 billion (+44.2%)
- 2011: $4.18 billion (+46.7%)
- 2012: $6.16 billion (+47.3%)
- 2013: $7.98 billion (+29.6%)
- 2014: $9.88 billion (+23.8%)
- 2015: $11.40 billion (+15)
- 2016: $12.92 billion (+13.3%)
eMarketer projects ecommerce sales in Mexico will reach $7.98 billion in 2013 and will continue to grow at healthy double-digit rates through 2016, when annual sales will near an estimated $13 billion.
Looking forward, eMarketer has increased the estimated compound annual growth rate of B2C ecommerce in Mexico for the 2010-2016 forecast period from a 19% rate predicted in July 2012 to 29%.
Despite those gains, Mexico continues to trail similarly developed economies worldwide in adoption of digital media, including ecommerce.
eMarketer predicts that, among the three largest economies in Latin America, Mexico will have the smallest number of digital buyers in 2013 with 8.4 million. By comparison, Argentina, with less than half the population of Mexico, will have 9.2 million digital buyers; Brazil will have 26.7 million.
Though the number of digital purchasers in Mexico is relatively small, the amount that those buyers spend is fairly high. eMarketer estimates the average digital buyer in Mexico will spend $952 this year, more than double Argentina's $428 per digital buyer and noticeably ahead of the $741 average per digital buyer in Brazil and the Latin American average of $620.
The gap in average consumption per online buyer in Mexico and Brazil may reflect divergent trends in the two largest economies in Latin America: on the one hand, Mexico's increasingly uneven income distribution; on the other, Brazil's growing middle class.
Change could be on the horizon, though. Low-income individuals are just starting to see viable payment methods being offered for consumers without credit cards. Credit cards have notably low penetration in the country, especially among lower-income individuals. Alternative payment methods include cash on delivery, cash or card payment at a brick-and-mortar or bank branch, alternative payment processing, gift cards and checks.
As more internet users from lower socioeconomic levels ease into online buying, the use of credit cards to pay for online purchases in Mexico will continue to decrease, though marginally, in favor of alternative forms of payment. (eMarketer, January 2013)
Online Travel Market
Travel, event tickets and virtual goods are the leading categories of online sales in Mexico. But sellers of physical goods are beginning to make inroads. In May 2012, Google found that travel (36%), financial services (12%) and media & entertainment (12%) were the leading product categories purchased online among internet users in Mexico. (eMarketer, January 2013)
Mobile / Smartphones
Nearly nine in 10 smartphone owners in the country used their phones to go online from home (89%). Three-quarters (75%) did so from work locations, a Google survey conducted this year by Ipsos MediaCT and TNS Infratest.
Less than two-thirds of smartphone owners, meanwhile, said they went online on their phones while "on the go" (64%). It was more common to go online from restaurants (67%), and about equally likely for users to go online at cafes or coffee shops (63%).
Smartphone usage in Mexico-especially usage of the mobile internet-has some unusual characteristics. Owners of second-hand smartphones who have no credit card or cannot afford a data plan use Wi-Fi hotspots to access the internet. It is similar to a trend observed in the US about five years ago. However, there are two key differences: First, users in Mexico are connecting primarily via mobile devices, like smartphones and feature phones, while laptops and netbooks were the preferred devices among US hotspot users. But what really makes Mexico unique is that access to hotspots is usually granted by fixed broadband providers to their subscribers only. This trend will likely foster smartphone adoption but will not boost mobile broadband subscription uptake immediately. (eMarketer, November 2012)
There were 94.6 million mobile connections in Mexico in Q4 2011, according to data from Comisión Federal de Telecomunicaciones (COFETEL). And 42.6 million of them were in just four states plus the Federal District, representing nearly half of all mobile connections in the country.
Top five States in Mexico, by mobile connections, Q4 2011:
1. Distrito Federal: 21.3 million
2. Jalisco: 6.9 million
3. Veracruz: 5.6 million
4. Nuevo Leon: 4.7 million
5. Puebla: 4.1 million
eMarketer estimates that mobile connections in Mexico will reach 98 million in 2012, making it the second-largest market in Latin America, after Brazil.
While the sheer size of its population makes Mexico stand out in terms of total mobile connections, it trails most markets in Latin America in both mobile penetration overall and adoption rates for postpaid plans. According to the February 2012 GSM Association and A. T. Kearney report "Latin American Mobile Observatory: Driving Economic and Social Development through Mobile Broadband," based on Wireless Intelligence, mobile subscription penetration in Mexico reached 87% in 2011. In the same period, the penetration rates in Chile, Argentina and Brazil were 139%, 135% and 123%, respectively. The same study found that the postpaid mobile penetration rate of 14% in Mexico also trailed that of Chile (29%), Argentina (29%) and Brazil (20%).
Postpaid plans are a catalyst for mobile broadband uptake worldwide, and Mexico is expected to follow that pattern eventually. In 2012, however, Wi-Fi hotspot usage in urban areas is driving smartphone uptake and mobile internet traffic in the country, but not necessarily mobile broadband adoption. In the case of the hotspots trend, smartphone users, especially owners of second-hand devices who have no credit cards or cannot afford a data plan, use Wi-Fi hotspot networks to access the internet, primarily via smartphones. Access to those networks is usually granted by fixed broadband providers to their existing customers at no extra cost. (eMarketer, May 2012)
Smartphone and tablet penetration rates among active internet users in Mexico stood at 45% and 16%, respectively, outpacing those of the US (44% and 14% respectively) and Canada (28% and 12% respectively), according to a December 2011 global study by UM (formerly Universal McCann) titled "The Business of Social: Social Media Tracker 2012".
The study focused on the active internet universe and defined the group as those ages 16 to 54 who used the internet at least every other day.
For comparison, the Interactive Advertising Bureau México (IAB México) survey "Estudio de consumo de medios digitales entre internautas mexicanos 2011," conducted by Millward Brown in July-August 2011, found that 33% of internet users in Mexico owned a smartphone, up from 14% in 2010. In the same period, tablet ownership went from 4% to 7%.
A closer look at the methodology of the IAB México survey shows that 40% of respondents belong to the ABC+ socioeconomic level, the top-earning group. With a per-capita GDP one-third that of the US and higher-priced devices due to exchange rates, early adopters in Mexico can be assumed to be some of the highest earners in the country.
When measured against a broader base, like mobile phone users (eMarketer estimated 59.1 million mobile phone users in Mexico in 2011, compared to 40.4 million internet users), smartphone penetration drops considerably. The Competitive Intelligence Unit (CIU) found that smartphone penetration among mobile phone users in Mexico was 14% at the end of 2011.
The stark difference in adoption rates is likely to be narrowed as prices of advanced mobile devices drop. However, high-earning internet users will continue to lead mobile device adoption more strongly in Mexico than in other markets. (eMarketer, March 2012)
In Mexico, non-computer devices represented 2.9% of the country's internet traffic in October 2011, according to comScore.
A closer look at the data shows that mobile phones, tablets and other non-computer connected devices represented 58%, 28% and 14% of Mexico's mobile internet traffic, respectively. Apple devices in Mexico had a clear lead over mobile internet devices running Android and other operating systems, with iOS taking a 60% share of mobile traffic in the country, according to comScore. (eMarketer, March 2012)
Last Updated on Saturday, 29 June 2013 20:11