Usage Patterns
Demographics
There were an estimated 212,401,030 internet users in Latin America (representing about 36.7% of the region population), according to statistics updated June 2011 by Internet World Stats.
Latin America top 10 countries, as per June 2011:
1. Brazil: 75,982,000 (37.4% of the population in the country)
2. Mexico: 34,900,000 (30.7%)
3. Argentina: 27,568,000 (66.0%)
4. Colombia: 22,538,000 (50.4%)
5. Venezuela: 10,421,557 (37.7%)
6. Chile: 9,254,423 (54.8%)
7. Peru: 9,157,800 (31.3%)
8. Dominican Republic: 4,116,870 (41.3%)
9. Ecuador: 3,352,000 (22.3%)
10. Guatemala: 2,280,000 (16.5%)
(Internet World Stats, August 2011)
As a whole, Latin America has 217 million internet users in 2011, according to eMarketer. The number is expected to grow to 285 million by 2015. Brazil accounts for the largest share of that group in 2011, at 36%, but is still outnumbered by the rest of the region by almost two-to-one. The country's share will decrease to 34% by 2015.
Internet user share in Latin America, by country, 2009-2015 (% of total):
- 2009: Brazil (38%) / Mexico (17%) / Argentina (9%) / Other (36%)
- 2010: Brazil (37%) / Mexico (18%) / Argentina (10%) / Other (36%)
- 2011: Brazil (36%) / Mexico (19%) / Argentina (10%) / Other (36%)
- 2012: Brazil (35%) / Mexico (19%) / Argentina (10%) / Other (36%)
- 2013: Brazil (35%) / Mexico (20%) / Argentina (10%) / Other (36%)
- 2014: Brazil (34%) / Mexico (20%) / Argentina (10%) / Other (36%)
- 2015: Brazil (34%) / Mexico (21%) / Argentina (10%) / Other (36%)
(eMarketer, October 2011)
The internet population in Latin America has increased 15% to 112.7 million visitors in the past year as the region's digital ecosystem continued to grow and develop, according to comScore.
Consumers are turning to the internet for a variety of activities including communication, social connection, information and commerce, as the web becomes an increasingly valuable resource for consumers and marketers alike. With continued growth expected across the region, advertisers and publishers are just beginning to realize the tremendous potential that exists for this channel throughout Latin America.
Brazil, the largest online market in Latin America, grew 20% in the past year to 40.5 million users, while Mexico's online population surged 21% to 18.1 million. Venezuela, which represents a relatively small online market at 2.9 million, achieved the highest rate of growth in the past year at 27%.
Latin America market growth by total internet users, January 2011 vs. January 2010 (Total Latin America Internet Audience, Age 15+ - Home & Work Locations):
LATIN AMERICA: 112,659,000 (+15% compared to January 2010)
- Brazil: 40,528,000 (+20%)
- Mexico: 18,109,000 (+21%)
- Argentina: 12,850,000 (+2%)
- Colombia: 12,416,000 (+24%)
- Chile: 7,304,000 (+8%)
- Venezuela: 2,910,000 (+27%)
- Puerto Rico: 1,228,000 (+8%)
An analysis of user engagement found that an average internet user in Latin America spent 24 hours online during January 2011, consuming 1,795 pages of content and visiting the internet nearly 50 times during the month. Looking across individual markets, Brazilians were the most engaged users averaging the most time spent online (25.8 hours), the most pages of content (2,077 pages) and the most monthly visits (55.5 visits). Argentineans and Mexicans both were more engaged than the regional average, with an internet user in Argentina spending an average of 25.5 hours online per month and an average user in Mexico spending 25.3 hours. (comScore, March 2011)
Colombia is the fastest-growing internet market in Latin America, growing 31% in the past year to reach 11.8 million unique visitors in September 2010, according to comScore.
More than 107 million people age 15 and older visited the internet from a home or work location in Latin America in September 2010, a 17% increase from the previous year. Brazil ranked as the largest online market in Latin America with more than 38 million visitors, an increase of 19%. Mexico followed as the next largest market with nearly 17 million visitors (up 21%), followed by Argentina with 12.8 million visitors (up 9%). Colombia led as the fastest-growing market in audience growth, increasing 31% to 11.8 million visitors.
Total unique visitor growth by market, September 2010 (total audience, age 15+: home & work locations):
LATIN AMERICAL 107,356,000 (+17% compared to September 2009)
- Brazil: 38,112,000 (+19%)
- Mexico: 16,997,000 (+21%)
- Argentina: 12,796,000 (+9%)
- Colombia: 11,838,000 (+31%)
- Chile: 7,271,000 (+12%)
- Venezuela: 2,689,000 (+26%)
Additional highlights from the presentation include:
- The average internet user in Colombia spent 20.4 hours online during September, consuming 1,606 pages of content and averaging 42 online visits during the month.
- 86% of Colombians visited a social networking destination in September, with Facebook leading the category. Visitors averaged 4.6 hours on the site during the month.
- Nearly 7 out of 10 Colombians visited a photo sharing site in September led by Facebook.com Photos.
- An average searcher in Colombia conducted 184 searches in September, resulting in a total of 2 billion queries conducted in Colombia during the month.
(comScore, December 2010)
Searches and Search Engines
Searches in Latin America surged 21% in the past year to more than 18.5 billion queries in March 2011, with the typical searcher conducting 167 queries during the month, according to comScore. Google Sites held a strong lead as the top search destination, accounting for 90% of all searches conducted in the region.
Each of the six countries included in this study experienced growth in search query volume. Brazil, which accounted for the largest volume of search queries at nearly 6 billion, also had the strongest growth rate of 34%. Mexico ranked as the second largest search market with nearly 3.2 billion queries conducted in March 2011 (up 23%), followed by Colombia with almost 2.9 billion searches (up 28%).
Search query volume growth in Latin America, March 2011 - total Latin America internet audience, Aged 15 years old and older (home & work locations):
Latin America: 18,528,000,000 (+21% compared to March 2010)
- Brazil: 5,969,000,000 (+34%)
- Mexico: 3,171,000,000 (+23%)
- Colombia: 2,866,000,000 (+28%)
- Argentina: 2,186,000,000 (+21%)
- Chile: 1,041,000,000 (+7%)
- Venezuela: 493,000,000 (+31%)
Analysis of the top search destinations in Latin America revealed that Google Sites captured the majority of the search market in Latin America with 90.5% market share. More than 16.7 billion searches were conducted on the property in March 2011, with the average searcher performing 153 queries during the month on Google Sites. Across each of the six markets studied, Colombia accounted for the highest share of searches at Google Sites at 92.2%, with Argentina accounting for the lowest share at 89.4%. Facebook.com ranked as the #2 search destination in Latin America with 525 million searches (2.8% share) followed by Microsoft Sites with 513 million searches (2.8% share). (comScore, May 2011)
Digital Media
More than 80% of internet users age 15 and older in Brazil, Mexico, Argentina and Chile watched online video from a home or work computer in March 2011, according to comScore. Brazil, home to the largest internet population in the region, saw 35.9 million people view online video during the month, with viewers watching a total of 3.1 billion videos. Mexico had the highest reach, with 87% of its web population watching nearly 2 billion online videos.
More than 11 million web users in Argentina (86.5% reach) and nearly 6.1 million internet users in Chile (83.2% reach) viewed online video. (comScore, May 2011)
eCommerce
Although the majority of visitors to e-commerce sites in Latin America make purchases online, retailers still face obstacles in converting many consumers to online shoppers due to concerns over transaction security, availability of payment options and the selection of goods available online, according to the results of a study by comScore, Inc. of the e-commerce landscape in Latin America. The study, which surveyed nearly 800 respondents, looked at e-commerce activity across Brazil, Mexico, Argentina, Chile, Colombia and Peru as well as online banking behaviors, mobile activity and Twitter usage.
Relative to other global regions, the e-commerce industry in Latin America is still in its infancy, but consumers are showing encouraging signs of adopting the channel, according to Alejandro Fosk, senior vice president of Latin America for comScore. With 3 out of 5 internet users in Latin America visiting retail sites each month, it is clear that consumers are interested in online shopping. In order to convert these browsers to buyers, retailers need to address consumers' concerns about purchasing online in order to help the e-commerce industry develop to its full potential in this region.
Among those who visited e-commerce sites in Latin America, 79% of males reported making an online purchase, while 88% of females reported doing so. Across the markets included in the survey, Brazil showed the highest percentage conversion of online e-commerce site visitors to purchasers with 94% of visitors in Brazil making an online purchase. Argentina followed at 89%, with 84% of e-commerce site visitors in Colombia doing so.
% of e-commerce websites visitors that made purchase online, October and November 2010:
Latin America: 79% (among males) / 88% (among females)
- Brazil: 94%
- Argentina: 89%
- Colombia: 84%
- Mexico: 82%
- Chile: 71%
- Peru: 63%
Of those that did not purchase online, security ranked as the main concern among prospective shoppers. Specifically, 68% of females listed security concerns as a reason why they do not make purchases online, with 48% of males reporting this as a reason. Preferring to shop in person rather than online was also a main deterrent to online shopping, with 38% of males and 32% of females reporting this as a reason. Consumers also reported that type of payment options offered hindered their adoption of online purchasing (35% of males, 32% of females) as well as shipping costs (30% of males, 42% of females).
An analysis of consumer preferences regarding purchasing at international versus local e-commerce websites revealed that consumers in Argentina have the strongest preference to shop at local websites with 3 out of 4 consumers preferring this option. More than half of consumers in Brazil and Colombia also preferred shopping at local websites, while slightly more than half of consumers in Mexico, Chile and Peru preferred international websites for online shopping. (comScore, December 2010)
Online Travel Market
Travel Booking
With strong economic and tourism development, a rapidly expanding middle class and a unique payment landscape, most Latin American nations are poised for double-digit online travel growth through 2012.
Like other more mature travel markets, credit card is the predominant payment method for travel in Latin America, especially as consumers in the region have grown more comfortable paying online. But Latin America features a highly innovative travel payment landscape, with a variety of payment methods that help boost conversion and provide flexibility to travellers, according to PhoCusWright's Latin American Online Travel Overview report.
The report uncovers how concerns over online fraud and security in the region have been largely eliminated, and the number of credit cards in circulation has grown along with the economy. While many consumers do opt to purchase travel services and products using global credit cards, card penetration varies considerably from one country to the next. In many markets, local and customer cards are also popular. In addition, there are options to pay in retail outlets, such as supermarkets, departments stores and quick-payment kiosks. These nontraditional payment touchpoints give travellers a wide range of options, and are crucial to conversion. At the same time, banks are becoming a strong partner for the sector, providing the middle class new access to credit, and working with industry players to create and promote loyalty programs. (PhoCusWright FYI, June 2011)
Despite the global economic slowdown, the Latin American online travel marketplace is bursting with potential, and is poised for strong double-digit growth for the next several years, according to a report from PhoCusWright.
PhoCusWright indicates that online travel agencies (OTAs) (well-established local/regional players, and global brands that have recently arrived in the region) are expected to double their gross bookings to approximately US$5 billion in the next two years.
Until recently, regional and local online travel agencies have dominated the space, and global OTAs found it challenging to unlock the potential of this complex, unique market, according to PhoCusWright. But in 2010, big global players really stepped up their efforts in the region, specifically by targeting the highly fragmented hotel space. And they've had some remarkable results. However, it remains to be seen whether, in the long term, they have what it takes to understand and leverage the similarities and differences among the extremely diverse countries that together comprise the Latin American market. (PhoCusWright FYI, April 2011)
Travel Industry Online Developments
Growth in the online travel market in Latin America is leading to intense competition, according to PhoCusWright.
Travel distribution in Latin America is still primarily an offline process. However, critical mass is building for consumers and travel companies to connect online. Regional players were the first to make the move online, but this is about to change rapidly as global online travel companies enter the Latin American market.
PhoCusWright indicates that competition is heating up. In the last six months:
- Expedia has expanded in Latin America with an aggressive presence in Mexico
- Booking.com and Hotels.com opened Latin America operations based in Sao Paulo, Brazil
- Travelocity named a new director for the region operating out of Argentina
- Egencia launched the Egencia Global Alliance to expand its network of strategic partnerships including Argentina and Uruguay.
Regional players are also stepping it up. LAN Airlines has launched a new online booking engine, LAN for Business, designed to allow small and medium businesses to purchase and reserve airline tickets. The biggest online travel agency in Brazil, submarinoviagens.com, launched its site focused on corporate travel, Submarino Corporate Travel.
Internet sales are projected to grow significantly as new purchasers increasingly come online for the first time. The travel industry will begin to accommodate Latin America's emerging middle class tourists and business travelers. Credit card security is no longer the major issue but still a challenge, and continued improvement will foster significant growth.
The largest online travel markets in Latin America are Argentina, Brazil and Mexico followed by Colombia and Venezuela. Regional players accounted for exceptional performance and sales increases during 2009 despite the economic slowdown and specific country crises. Latin America's large number of internet users and high adoption of social networks are factors contributing to the online growth. (PhoCusWright FYI, March 2010)
Mobile Devices
Mobile / Smartphones
Latin America, as a region, has some of the highest adoption rates of mobile devices in the world and overall mobile phone user penetration of 55.4%. eMarketer estimates that penetration in Argentina, Brazil and Mexico will be 77%, 54% and 52% in 2011, respectively. Due to multiple SIM cards per person, subscription penetration in the countries is estimated much higher.
Mobile phone users in Latin America, 2009-2015:
- 2009: 331.5 million (57.3% of population)
- 2010: 354.6 million (60.6%)
- 2011: 375.5 million (63.4%)
- 2012: 396.2 million (66.2%)
- 2013: 415.6 million (68.6%)
- 2014: 432.7 million (70.7%)
- 2015: 450.7 million (72.9%)
However, one of the most important takeaways from the CTIA Wireless 2011 panel, "The New Frontier: International Perspectives," is that each country in the region is very different. The marketers on the panel represented companies operating throughout Latin America, but they stressed the importance of fragmentation. Each country maintains a unique culture that responds differently to marketing campaigns, the panelists advised. In addition, Jorge Partidas, CEO of WAU Movil, identified two other challenges limiting mobile marketing in Latin America: the prepaid user base and limited bandwidth.
Fernando Dias, CEO of Pure Bros, stated that one constant across the region was the high cost of voice services. As a result, most consumers possess prepaid phones and have learned to communicate efficiently through text messages. He also went on to say that while data access plans remain expensive, carriers are beginning to accommodate users by offering unlimited access at rates between $0.30 and $1 per day.
Mobile phone user penetration in Latin America, by country, 2009-2015:
- Argentina: 83.0% of population in 2015, up from 71.0% in 2009
- Brazil: 69.0%, up from 46.0% in 2009
- Mexico: 63.5%, up from 45.0% in 2009
- Other: 79.0%, up from 70.6% in 2009
- LATIN AMERICA: 72.9%, up from 57.3%
(eMarketer, March 2011)
UGC and Social Media
Although the largest Facebook.com markets by audience size are the United States, Germany and India, many of the most highly penetrated markets for the social networking giant are in Latin America, according to comScore's The Rise of Social Networking in Latin America Report. In fact, five of the top ten markets for Facebook.com penetration are in the region.
Facebook.com reached 90.9% of all online users in Chile, ranking as the third most highly penetrated market globally behind the Philippines and Turkey. Argentina, Colombia and Peru immediately followed Chile, with all markets seeing Facebook.com reach more than 89% of their internet populations, while the site reached 86.9% of online users in Venezuela.
Top ten markets for Facebook.com by percentage reach of visitors, June 2011:
1. Philippines: 93.5%
2. Turkey: 92.5%
3. Chile: 90.0%
4. Argentina: 89.9%
5. Colombia: 89.5%
6. Peru: 89.3%
7. Israel: 88.6%
8. Malaysia: 88.2%
9. Venezuela: 86.9%
10. Indonesia: 86.7%
(comScore Data Mine, September 2011)
114.5 million people in Latin America visited a social networking site in June 2011, representing 96% of the entire online population in the region, according to comScore. In the past year, the social networking audience in Latin America has increased 16% while the total time spent on social networking sites has increased 88%.
Other key findings from comScore include:
- Latin Americans are strongly engaged with social networking. Half of the top 10 worldwide markets ranked by time spent on social networking sites are in Latin America, with Argentina leading the region at 10 hours per month in June 2011.
- The Latin American social networking audience is nearly equal in its composition of males and females, but females account for a larger share of social networking time spent (53.6%) compared to males (46.4%). This trend was most significant in Brazil where females accounted for 58.7% of all social networking time spent.
- People age 15-24 demonstrated the strongest engagement on social networks, accounting for nearly half (48.0%) of all time spent in the category. This trend was most significant in Venezuela where visitors age 15-24 accounted for 3 of every 5 social networking minutes (58.2%).
- Facebook.com strongly led the social networking market in Latin America, reaching more than 91 million visitors. Windows Live Profile ranked #2 with more than 35.5 million visitors in the region. Orkut held the #3 spot with 34.4 million visitors, largely driven by the site's popularity in Brazil, while Twitter.com ranked #4 with 24.3 million visitors.
- Five of the top 10 markets ranked by Facebook.com reach are in Latin America. Facebook reached 90.9 percent of all online users in Chile, ranking as the most penetrated market in Latin America.
- In Brazil, Orkut ranked as the most-visited social networking destination, reaching 35.7 million visitors, an increase of 20% from June 2010. Facebook.com, which is the second largest social networking site in Brazil, witnessed strong growth increasing 192% to 24.5 million visitors.
- Venezuela is the only country in Latin America in which Twitter.com rises to second place in the social networking ranking. One in four online users in Venezuela visited Twitter.com in June (26.5% reach).
- Recently launched Google+ reached 28 million visitors worldwide in the first 33 days of its public existence (June 29, 2011 to July 31, 2011). Brazil ranked as the sixth largest market for the site globally, contributing 793,923 visitors.
(comScore, September 2011)
Last Updated on Wednesday, 01 February 2012 16:35
