The latest studies are showing several key online trends in Brazil that should impact the advertising, media and marketing worlds. Here’s a look at the main ones to watch during 2012 and beyond.
#1 Online Ad Spend in Brazil Broke Records in 2011
According to IAB Brasil, online ad spend in September 2011 was 40% higher than online ad spend in September 2010. It reached a record amount of $141 million reales (US$79 million). It grew more than any other medium in that time period—pay TV was a distant second with 22% growth. Overall, in 2011 online ad spend went up by 25% compared to 2011, taking in 3.1 billion reales (US$1.7 billion). Online broke another record in Brazil in 2011 by taking up 10% of overall ad spend, a huge jump from 2010 in which online only made up 4.3% of total ad spend.
#2 Internet Penetration in Brazil Will Hit 70-80% by 2015
As of the end of 2011, Brazil had around 78.5 million Internet users—37% penetration. However, two different sources are projecting huge increases in the next couple of years. In October 2011, Paulo Bernardo, Brazil’s Communications Minister, predicted that 70% of Brazilian homes will have Internet service by 2015. However, the Comitê Gestor da Internet, an organization with members from the government, the online industry and academia, projects that 80% of Brazilian homes will have Internet access by 2014.
#3 Brazil’s Internet Audience is Becoming Socioeconomically Broader
According to a recent study done by Fecomercio-RJ and Ipsos, many more Brazilians from classes C and D have Internet access and their numbers are steadily growing. In 2007, only 31% of class C members in Brazil had Internet access—but this number jumped to 43% in 2011. And while only 8% of Class D members had Internet access in 2007, by 2011 17% of them had it.
#4 Brazil Still Leads Latam in E-Commerce
Besides accounting for 70% of all Latin American e-commerce sales, the country’s per capita online spend is the highest: $42, followed by both Chile and Argentina, each with $36. The trend continued in 2011. Research firm e-bit projected $18 billion reales (US$10 billion) in 2011 e-commerce sales in Brazil, up 26% from 2010. However, the final numbers could be higher, since Brazilian e-commerce sales on Black Friday 2011 shot up by 88% compared to 2010. And for 2012, the firm forecasts 25% growth in the e-commerce market of Brazil.
#5 By 2015, Brazil Will Be the World’s #4 Online Market
This is according to T-Index 2015, a rating developed to help companies decide in which languages to translate their sites for maximum online sales potential. The T-Index rating is driven by factors like amount of Internet users and GDP.
In 2015, China will be the #1 online market in the world, followed by the United States and Japan. T-Index predicts that Brazil will in the #4 slot after passing Germany. Interestingly enough, in 2011 Brazil passed Germany in terms of its amount of Internet users.
#6 Mobile is the #2 Way for Brazilians to Go Online
According to F/Nazca, 29 million Brazilians access the Internet from mobile devices: 74% use cell phones and the rest use other kinds, such as tablets. So many now do this that mobile devices are the #2 way for Brazilians go online—they’re tied with the LAN Houses (Internet cafes) that many use. In fact, until April 2010 LAN Houses were actually the #1 way for Brazilians to go online. These days, however, most Brazilian Internet users (43.5 million) access the Internet from a home connection.
#7 Many More Brazilians Are Going Online with Tablets
While the F/Nazca study showed that the large majority of Brazilians access the mobile web via cell phones, another recent study by comScore shows different results. Released in December 2011, comScore’s Device Essentials study showed that 39.9% of the non-computer web traffic in Brazil came from tablets. The only other country in Latin America with a similar percentage was Colombia, with tablets making up 38.9% of its non-computer web traffic.
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