TABLE OF CONTENTS

Executive Summary Internet Usage Advertising Spend Internet Advertising Social Media Brazil Advertising Spend Internet Advertising Social Media Mexico
Source of all statistics:

2 3 4 5 6

7 8 9

Internet Usage Internet Advertising Social Media Colombia Advertising Spend Internet Advertising Social Media About WSI

10 11 12

13 14 15 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 regions largest markets for adspend - Brazil, Mexico and Colombia.

For more information about WSIs 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

Copyright 2010 by Research and Management

Page 3

WSI Internet Marketing Trends Report 2010

LATIN AMERICA

Advertising Spend

Brazil, Mexico and Colombia are the Largest Markets for Adspend
According to ZenithOptimedia, Brazil is the regions 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

Copyright 2010 by Research and Management

Page 4

WSI Internet Marketing Trends Report 2010

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 Internets 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

Copyright 2010 by Research and Management

Page 5

WSI Internet Marketing Trends Report 2010

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

Copyright 2010 by Research and Management

Page 6

WSI Internet Marketing Trends Report 2010

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

Copyright 2010 by Research and Management

Page 7

WSI Internet Marketing Trends Report 2010

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 Internets share continues to grow
Copyright 2010 by Research and Management Page 8

WSI Internet Marketing Trends Report 2010

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
Copyright 2010 by Research and Management Page 9

WSI Internet Marketing Trends Report 2010

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 countrys 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 Mexicos 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)

Copyright 2010 by Research and Management

Page 10

WSI Internet Marketing Trends Report 2010

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
Copyright 2010 by Research and Management Page 11

WSI Internet Marketing Trends Report 2010

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 Mexicos 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 Mexicos engagement in YouTube is above average

Copyright 2010 by Research and Management

Page 12

WSI Internet Marketing Trends Report 2010

COLOMBIA

Advertising Spend

Internet Advertising 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
Copyright 2010 by Research and Management Page 13

WSI Internet Marketing Trends Report 2010

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

Internet Advertising 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
Copyright 2010 by Research and Management Page 14

WSI Internet Marketing Trends Report 2010

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
Copyright 2010 by Research and Management Page 15

WSI Internet Marketing Trends Report 2010

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 worlds 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 Magazines 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 WSIs 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.