ComScore - State of the internet - Brazil

Proprietary and Confidential Do not distribute without written permission from comScore

Data Sourced From comScore’s Global Panel of 2MM
Internet Users Worldwide

A Global Measurement of Audience and e-Commerce °
360° View of Consumer Behavior

Web Visiting
and Viewing

Demographics Online
Life Stages Transactions

Streaming Search
Video Behavior

37 Individually Reported Countries
Media
172 Countries with Sample Presence Exposure

Proprietary and Confidential Do not distribute without written permission from comScore 2

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Strong Track Record of Innovation

to Provide Behavioral Ad
Effectiveness (Campaign Metrix)
Video Streaming Measurement
(Video Metrix)

to Deliver a Worldwide Internet Audience
Measurement (World Metrix)

to Measure the Search Market
(qSearch)

to Build and Project from 2M+
Longitudinal Panel
to Monitor and Report
eCommerce Data
External Recognition

WORLD ECONOMIC Top 100 World’s Largest
FORUM Innovative Companies Windows Database
Technology December 2004 December 2001,
Pioneer 2003, 2005
2007


The US Now Accounts For Less Than a Fifth of the
Worldwide Internet Population

■ Twelve years ago in 1996, two-thirds of the world’s online population was in the U.S.

Regional Distribution of
Online Population by Geography
World Online Population

YOY
Rest of the Growth
World 34%

83% Non-U.S.
+12.4%

United
66%
States
`
U.S.
17% +3.4%

1996 2008

Source: comScore World Metrix, September 2008

Latin America continues growth

■ Growth has slowed in North America and Worldwide Online Population
Europe Millions of +10.6%
Internet Users
■ Asia Pacific continues to show strong 778.3
860.5

growth on a large base
■ Latin America and the Middle East/Africa
are now the high-growth regions globally
June 2007
Worldwide
June 2008
Online Populations by Region
Millions of Internet
Users

+14.0%
326.8
286.7 +8.0%
+3.6%
223.9 241.8
178.4 184.7
+18.1%
+22.8%
53.7 63.4
35.6 43.7

Asia Pacific Europe North America Latin America Middle East - Africa

Source: comScore World Metrix, June 2008

Brazil is largest and fastest-growing in the region

■ Brazil has, by far, the largest online population in the region, and continues to grow at a
rapid rate – YOY growth was 27%
■ Brazil has the heaviest users in the region, outpacing the worldwide average

Internet Users (MM) Total Online Hours per Visitor
in Latin America Latin America
WW Avg: 22.4
Brazil 26.2 58.3 Brazil 26.8

Mexico 12.2 Mexico 23.3

Argentina 9.1 Extended Universe
Argentina 25.9
estimate, including
users under 15 or
Chile 5.5 using shared Chile 22.0
computers
Colombia 3.6 Colombia 23.0

Venezuela 1.7 Venezuela 22.9

Puerto Rico 0.9 Puerto Rico 15.8

Internet users ages 15+ accessing the internet from a Home or Work computer

Comparison to Other Countries Outside Region

■ 15+ Home and Work populations in India, Russia, and Korea are roughly the same size
■ Brazil’s usage is among the heaviest in the world: only a few other countries spend more
time online per user than Brazil

Internet Users (MM) Total Online Hours per Visitor
WW Avg: 22.4
Brazil 26.2 58.3 Brazil 26.8

China 168.3 254.3 China 18.6

India 30.7 46.1 India 10.5

Russian Federation 27.4 Russian Federation 14.7

South Korea 26.7 Extended Universe South Korea 21.9
estimates for Brazil,
China & India,
Italy 20.2 including users Italy 18.4
under 15 or using
shared computers
Spain 17.1 Spain 23.0

Internet users ages 15+ accessing the internet from a Home or Work computer

Brazilians show strong preference for local content

Total
■ Nine of the top 20 Internet properties Unique % Reach in
Top Properties in Brazil Key Sites
are Brazilian, and an additional 5 are Visitors
(000)
Brazil

Latin American or Portuguese sites Total Internet : Total Audience 26,221 100.0
Google Sites Google Search, Orkut 23,755 90.6
■ Google, the #1 property in Brazil, Microsoft Sites
Windows Live Messenger,
Windows Live Hotmail
22,718 86.6

draws its popularity from its search UOL Sites UOL.COM.BR 18,294 69.8
Organizacoes Globo Globo.com, Globo Videos 15,448 58.9
engine and Orkut, while Microsoft Terra Networks Terra Brasil 14,594 55.7
traffic is driven by MSN Live Grupo Brasil Telecom iG.com
Yahoo! Answers,
14,012 53.4
Yahoo! Sites 13,912 53.1
Messenger. Both benefit from Homepages, Search
MercadoLibre MERCADOLIVRE.COM.BR 10,909 41.6
localized content versions and a Wikimedia Foundation Sites Portuguese Wikipedia 8,546 32.6
Submarino,
strong Brazilian version of the brand. Lojas Americanas
AMERICANAS.COM
8,095 30.9
WordPress 7,119 27.2
Continued success depends on their BuscaPé Inc. BUSCAPE.COM.BR 4,780 18.2
ability to diversify and provide other Grupo Abril
Oi - Grupo Telemar
ABRIL.COM.BR
OI.COM.BR
4,491
3,572
17.1
13.6
offerings that cater to the Brazilian Adobe Sites 3,480 13.3
CAIXA.GOV.BR 3,384 12.9
audience Portugal Telecom Sapo.pt 3,258 12.4
Grupo Carso Claro Sites 3,183 12.1
SP.GOV.BR 3,182 12.1
Batanga SONICO.COM 3,137 12.0


Brazilians, Like Audiences Worldwide, Prefer to
Consume Content in their Native Language

Distribution of Pages Viewed by Language

Puerto Rico

Venezuela

Mexico

Colombia

Argentina

Chile

Brazil

Source: comScore Custom Analysis of Page Views by Language, February 2008

Traffic to Top Brazilian Sites from Outside Brazil

■ The combined unduplicated audience of the Top 4 Brazilian sites draws a third of its
audience from outside the country
■ Besides their shared language, Portuguese Internet users may also view Brazilian
content in order to supplement the variety of publisher offerings at home
■ Large Brazilian expat communities in a number of countries (particularly in neighboring
Argentina and in Japan) also make up a substantial part of these sites’ Worldwide
audience. Brazilians are loyal to their local language content no matter where they may
be in the world
Source of Traffic to Top 4 Brazilian Sites

Total Unique
Visitors
World-Wide 32,209
Brazil 21,626
Portugal 1,512
Argentina 973
Japan 694
United States 589
Spain 346
Mexico 215
Italy 278


How the World Uses the Internet

Average Internet Growth = 10.6%

“On-ramp”
categories Everyone uses it:
High Reach,
- Portals Flat Growth
- Search
Global Reach

Utility & Content - Entertainment Approaching Mainstream,
- Multimedia High Growth
- Email & IM - Gaming
- Retail
- Business/Finance Mainstream,
Web 2.0
- General News MidReach, Growing Reach,
- Travel Flat Growth Very Fast Growth
- Social Networks
- Sports
Web 2.0 - Blogs
- Auto
“Casualties” - Photos
- Reference
Low Reach, - Community - Extended Web
Negative Growth - Personals
- Retail Movies
- Retail Music

Category Growth
Source: comScore World Metrix, June 2008

Key Categories in Brazil cluster around
Communications, Networking, Entertainment

250 ■ Brazilians are FAR more likely to use
Social Networks and Blogs than the
average global Internet user. This
Consumer
generates concomitant above-average
200
Electronics Government usage of Extended Web technologies
(widgets)
Entertainment -
IMs
■ Communication is key: Instant
Index to WW Reach

News
150 Messengers and E-Mail continue to be
Extended Web popular
Social
Blogs
Networking
■ Entertainment sites in general are
Multimedia e-mail
100 Retail popular, but Entertainment News
0.0 20.0 40.0 60.0 80.0 100.0 visitation in Brazil is above average
■ Brazilians’ love of shopping reflected in
50
above average visiting to Retail sites,
particularly Consumer Electronics
■ High index for Government sites driven
by Caixa, e-Government at state level
0
Brazil Reach
Brasil Reach


Social Networking in Brazil Dominated by Orkut

■ The full category reaches 84.3% of the Brazilian audience, one of the highest rates in the
world for Social Network visiting
■ Orkut is THE primary Social Network in Brazil – both reach and usage metrics outstrip all
others
Social Networking Sites in Brazil

% Reach Minutes per Visitor Visits per Visitor
Orkut 79.1 496.1 28.3
Yahoo! Geocities 14.9 2.8 1.8
SONICO.COM 11.4 10.1 2.7
FOTOLOG.COM 6.1 22.1 5.3
8P.COM.BR 5.6 11.2 1.9
MULTIPLY.COM 4.5 4.4 1.5
HI5.COM 4.4 10.6 2.0

MYSPACE.COM 3.4 13.2 2.3

FACEBOOK.COM 1.4 14.2 2.7


Social Networking is Highly Localized

■ Now that Social Networking has generally become mainstream, emerging markets,
particularly, tend to “choose” a primary provider

■ Facebook leads in most of the Lat Am countries: ■ Brazil accounts for nearly half
Argentina: Facebook, 28% of audience of Orkut’s global traffic
Chile: Facebook, 67.7% of audience % of Unique Visitors
Distribution of Orkut Traffic
Colombia: Facebook, 60.2% of audience
Mexico: Sonico.com, 22.1% of audience Rest of the
PR: Facebook, 47.2% of audience World, 20%

Venezuela: Facebook, 49.4% of audience
Brazil,48%
■ Friendster has strongholds in Southeast Asia;
other country-dominant sites include Mixi in India,27%

Japan and CyWorld in South Korea Rest of Latin
America, 5%

15


The ‘Halo Effect’ in Social Networking

■ Orkut’s 79.1% reach in Brazil indicates a high degree of comfort w/ the Social
Network concept, more so than in other countries
■ This extends to increased usage of sites incorporating the SN concept
■ Photo sites
Fotolog, Flickr, Picasaweb, Bubome Most visitors to these sites are
also Orkut users
■ Video sites
Youtube, Globo Videos
■ The ‘high switching cost’ associated with Social Networks really applies more to SNs
that don’t offer anything substantially beyond the core services already provided by
Orkut
■ Sonico reached 11.4% of the Brazilian audience in September, compared to Orkut’s
79.1%, but more critically, 94% of Sonico visitors also visited Orkut
■ Global leader FaceBook is not even a player in this market, despite Brazilian Portuguese
version


Widget Publishers & Platforms

■ 7th highest Extended Web (Widget) penetration rate globally, unsurprising given
popularity of Social Networks and Blogs in Brazil
■ Reflects Brazilian (and Latin American) publishers’ comfort level with Widgets

Extended Web Reach
% of Online Population

66.7 65.1
59.8 57.3 55.6 54.6 51.9 51.5 49.8 48.2
39.6


Search Intensity Comparison

■ Countries with similarly-sized Searcher populations include developed Internet
economies and very large developing markets
■ Brazil’s search intensity aligns more closely with France, Italy, Korea than
Russia or India
Search Population & Intensity

Total Searchers (MM) Searches per Searcher

France 26,213 France 106.3

Russian Federation 23,348 Russian Federation 63.0

India 22,931 India 51.0

Korea 21,072 Korea 109.3

Brazil 20,917 Brazil 106.5

Canada 20,265 Canada 122.5

Italy 17,683 Italy 105.8

Spain 14,638 Spain 96.5

Source: comScore qSearch, September 2008

Search is Dominated by Google

■ Generally heavy search activity in Latin ■ 89% of all online searches in Brazil are on
America Google
■ Brazilian users average 106.5 searches ■ UOL Sites and iG.com rank a distant second and
per searcher third after Google (with <2% share each), and all
others make up the remaining 6%, the largest
Search Intensity among them including Yahoo, Microsoft, Terra,
Searches per Searcher and Ask.com
Brazil 106.5

Mexico 106.8
Google Share of Searches

Latin America Brazil
Argentina 93.9
Chile 93%
Chile 97.7 Venezuela 93% UOL Sites,2%
Colombia 91% iG.com, 2%
Colombia 109.4 Argentina 89% All Others,6%
Google Sites,
Brazil 89% 89%
Venezuela 98.7
Mexico 88%
Puerto Rico 57%
Puerto Rico 62.4

Source: comScore qSearch, September 2008

Online Entertainment in Brazil

■ Multimedia sites lead amongst Entertainment subcategories both in terms of reach
and usage
■ Heaviest users are in Multimedia and Kids categories
■ Repeat visiting indicates high interest in the category

Entertainment Visiting & Engagement

% Reach Minutes per Visitor Visits per Visitor
Entertainment- Full Category 79.0 104.8 14.5
Multimedia 68.7 73.0 9.9
Entertainment- Music 42.7 10.0 3.6
TV 32.1 18.9 4.6
Entertainment- News 24.6 14.0 4.5
Radio 22.6 17.8 2.8
Kids 18.5 56.8 4.2
Entertainment- Movies 12.4 5.8 2.2
Humor 5.5 4.1 1.6


Clear Appetite for Multimedia, especially Video

th
Multimedia Sites
■ Brazil ranks 14 out of 37 countries in terms of % Reach
average visits to multimedia sites each month YOUTUBE.COM 47.5
Globo Videos 40.7
■ Globo Videos reached 41% of Brazilian online
WindowsMedia 14.3
population in September, YouTube.com
MSN Music 8.4
reached 48% MSN Video 8.3

■ YouTube’s reach of the audience increased by Real.com Network 5.9

26% since Oct 07; Globo Videos has grown an STARTVG.COM 5.1
WinAmp (App) 4.9
even faster 58%
4DH.COM 4.7
■ Low broadband penetration rates limit iTunes Software (App) 2.8

engagement and audience
Growth in Site Reach
47.5
37.7 40.7

25.7

+26% +58%

YOUTUBE.COM Globo Videos
Oct-2007 Sep-2008

IM is Highly Popular in the Region

■ Instant Messenger Usage in Latin America is the highest in the world; Brazil is a close
second after Argentina in terms of IM reach of the online audience
■ Windows Live Messenger almost exclusively drives the usage in the category

Countries with Highest Top Instant Messengers
IM Reach in Brazil
% Reach % Reach
WW average: 49.8
Argentina 78.9 MSN-Windows Live Messenger 76.8
Brazil 78.1 TWITTER.COM 9.1
Venezuela 77.1 Meebo, Inc 1.7
Colombia 76.4 eBuddy Sites 1.4
Mexico 73.6 PLUGOO.COM 1.3
Chile 71.9 Yahoo! Messenger 1.2
Spain 66.1 Google Talk (App) 0.5
Canada 65.9 IMINENT.COM 0.3
Portugal 65.8 WEBMESSENGER.COM.BR 0.2
Singapore 63.6 Skype Instant Messenger (App) 0.2


eCommerce is Taking Hold in Brazil

■ Brazil makes up 37% of the Latin American online population but made up 58% of e-
Commerce dollars in 1st half 2008
■ Brazil shops close to home: 95% of online dollars were spent on Latin American
sites
■ Brazilian buyer penetration 7% in Q2 2008 but ten times as many Brazilian internet
users visited a Retail site over the same time period

Users vs. $$ Site Purchasing Shopping Activity
Latin American % Share Share of Dollars % of Brazilian Audience

Source: comScore World Metrix , comScore Marketing Solutions Custom Research, Q2 2008

Top Retail Sites in Brazil

■ Consumer Electronics and Comparison Shopping sites are the largest Retail
categories in the country, and Brazilians visit those types of sites at a much heavier
rate than the worldwide average
■ Top sites are Comparison
Brazil vs. WW Average Shopping sites and Multi-Channel
Retail Category Reach retailers
Consumer Electronics
16.8
33.9 Top Retail Sites
30.8 in Brazil
Comparison Shopping
27.5
% Reach
Books 13.0
24.1 MercadoLibre 41.6
Computer Software 11.9
10.0 Lojas Americanas 30.9

Computer Hardware 11.2 BuscaPé.com Inc. 18.2
23.3
7.3 MAGAZINELUIZA.COM.BR 5.5
Department Stores
9.1
UOL Brasil Shopping 5.0
Sports/Outdoor 5.8
5.7 BONDFARO.COM 4.9
Retail - Music 5.3
8.7 Apple Inc. 4.7

Toys 5.1 LIVRARIASARAIVA.COM.BR 4.5
4.4
eBay 3.9
Apparel 4.7
17.2
EXTRA.COM.BR 3.7
Brazil WW Average


Summary of Key Findings

■ Since 1996, the proportions have shifted: in 96, two-thirds of the world’s online
population was in the United States; now, the U.S. accounts for only 20% of worldwide
users
■ Brazil has the largest and fastest-growing online population in an important emerging
region
■ Though Google and MSN lead the Top Properties rankings by virtue of specific offerings
that have caught on in Brazil, there are a slew of local providers poised to take share
and Brazilians vastly prefer to consume local content
■ It can’t be denied: Orkut is a phenomenon
– Its influence extends beyond “pure” social networks and into categories where a SN-type
community is brought to play
– Along with the Google Search engine, has made Brazil a stronghold for the brand
■ Low home BB penetration impedes a great deal of high-bandwidth activity, such as
video streaming, music downloads, etc, but it is clear that the desire/interest is there – a
huge opportunity for players in these categories as BB penetration grows
■ 7 of every 10 users in Brazil visit Retail sites, and consumers are becoming more
comfortable with purchasing online

ComScore - State of the internet - Brazil

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ComScore - State of the internet - Brazil