Emarketer brazil social media the mobile middle class goes social

BRAZIL SOCIAL MEDIA The Mobile Middle Class Goes Social JUNE 2013 Thiago Guimar達es Contributors: Christine Bittar, Osbaldo Franco, Debra Aho Williamson

Read this on eMarketer for iPad

EXECUTIVE SUMMARY Brazil’s large population, deepening internet penetration and early embrace of social media have created one of the largest social media markets in the world. In 2012, Brazil trailed only China, the US and India in total social network users. With 78.3 million people—or 79% of its internet users—on social networks, Brazil will be home to almost a third of Latin America’s social network users in 2013.

The number of social network users in Brazil continues to grow at a rapid clip. eMarketer estimates that Brazil will have the fifth-fastest social network growth in the world this year. The only drag on growth will be that social network usage is already widespread among the country’s internet users, leaving relatively little room for further gains. However, Brazil’s internet penetration is still only at 50%, so there are plenty of new internet users yet to come, and ample room for them in the social space.

At the same time, Brazil is an increasingly mobile market, a development that has a variety of implications for social media usage. Affluent users—the vast majority of them already on social networks—are adopting smartphones and tablets at a rapid pace, raising expectations that their usage is likely to shift to these devices. Lower-income users—those who will drive much of the growth in social network usage in Brazil—will access the internet on lower-priced feature phones, using low-cost, flexible mobile data plans and an expanding mobile broadband network.

Marketers trying to reach higher-income consumers in Brazil can expect to take advantage of the fuller social media experience that tablets and smartphones provide. Those marketers wanting to connect with a wider consumer base may need to adapt their outreach strategies and marketing content to the more limited abilities of the still-predominant feature phone.

Either way, successfully communicating with Brazil’s social media users—both old and new—will require not only piecing together the mobile puzzle, but also figuring out what content best captures their attention.

KEY QUESTIONS ■■

■■

■■

■■

What is the size of Brazil’s social media market?

How does social media usage in Brazil compare to other digital activities?

What are the leading social networks in Brazil?

How are marketers engaging consumers on social networks?

Social Network Users in Brazil, 2011-2017 millions, % of internet users and % change

71.0%

74.0%

79.0%

82.0%

86.0%

88.3

97.8

12.7%

10.7%

87.0%

89.2%

104.2

110.0

6.6%

5.5%

2016

2017

78.3 66.2 56.1

21.8%

2011

17.9%

2012

18.4%

2013

Social network users

2014

2015

% of internet users

% change

Note: internet users who use a social network site via any device at least once per month Source: eMarketer, April 2013 158656

www.eMarketer.com

CONTENTS 2 Executive Summary 3 Social Media Leads Internet Usage 8 Hitting the Sweet Spot for Engagement 9 TV Goes Social and Sports Grow Online 11 Conclusions 12 eMarketer Interviews 12 Related eMarketer Reports 12 Related Links 12 Editorial and Production Contributors

BRAZIL SOCIAL MEDIA: THE MOBILE MIDDLE CLASS GOES SOCIAL

©2013 EMARKETER INC. ALL RIGHTS RESERVED 2

SOCIAL MEDIA LEADS INTERNET USAGE

Time Spent on Leading Online Site Categories by Internet Users in Brazil, June 2010-Dec 2012 minutes

eMarketer projects that 79% of Brazil’s 99.2 million internet users will be social network users by the end of 2013. That is a significantly higher penetration rate than for Latin America as a whole, at 72.4%, and the global average of 67.7%.

Social Network Users and Penetration in Brazil, 2011-2017 Social network users (millions) —% change

2011

2012

2013

2014

2015 2016

56.1

66.2

78.3

88.3

97.8 104.2 110.0

21.8% 17.9% 18.4% 12.7% 10.7%

2017

6.6%

5.5%

—% of internet users 71.0% 74.0% 79.0% 82.0% 86.0% 87.0% 89.2% —% of population 28.4% 33.2% 39.0% 43.6% 47.9% 50.6% 53.0% Note: internet users who use a social network site via any device at least once per month Source: eMarketer, April 2013 155623

www.eMarketer.com

eMarketer’s estimates for social network usage tend to be more conservative than other sources, in part because eMarketer attempts to strip out nonhuman user accounts—such as brands, companies, pets, social groups and the like—when estimating the total number of social network users.

When comparing estimates from other sources, GlobalWebIndex put Brazil’s social network penetration at 87% for 2012, well above eMarketer’s 74% estimate, and InSites Consulting put it at 85%. On the lower end, in-market researcher IBOPE Media estimated that there will be 46 million social network users in Brazil this year, a projection markedly lower than eMarketer’s 78.3 million. This considerably different figure reflects IBOPE Media counting only home and work locations, not mobile access.

June

2010

Dec

June

2011

Dec

June

2012

Dec

Social media 10,335 11,071

13,789

19,194

24,229

28,541

Portals 24,466

23,809

28,611

29,951

22,426

17,269

Services 24,024

23,220

26,527

24,338

17,435

12,099

Entertainment 5,397 5,669

6,178

8,534

9,078

10,184

Games 1,893

1,965

2,079

2,017

2,557

1,125

1,546

1,707

1,761

2,146

News/information 813 1,058

Note: ages 6+; home and work locations Source: comScore Inc., "2013 Brazil Digital Future in Focus," March 14, 2013 157243

www.eMarketer.com

On a per-user basis, the amount of time Brazil’s internet users spent online also showed huge growth, according to comScore. In December 2012, users spent an average of 9.6 hours on social media sites, up from 6.3 hours in December 2010. For that year, time spent online per user in Brazil was about 9% higher than the global average; by 2012, the difference had jumped to 43%.

Not only is social media usage widespread among internet users in Brazil, it also takes up an increasingly large portion of their time spent online. comScore’s 2013 report on Brazil’s digital space showed that social media sites became the top website category in terms of time spent online by Brazil’s internet users as of June 2012, surpassing portals and “services” sites, which include email sites. By December 2012, internet users in Brazil were spending, cumulatively, 158% more time on social media sites than they had in December 2010.

BRAZIL SOCIAL MEDIA: THE MOBILE MIDDLE CLASS GOES SOCIAL

©2013 EMARKETER INC. ALL RIGHTS RESERVED 3

Time Spent on Social Networks in Brazil and Worldwide, Dec 2011-Dec 2012 minutes per visitor 579.0

More recently, in-market research firm Navegg reported that 62% of Brazil’s internet users were from the country’s middle class as of May 2013, compared with 33% from the higher-income classes and 5% from lower-income groups.

546.5 492.3 379.7

Demographic Profile of Internet Users in Brazil, May 2013 % of total

453.3

13-17 5% 346.8 Dec 2011 Brazil

330.4

336.9

March

June

323.0

328.3

Sep

Dec

60+ 7%

2012

Female 44%

Worldwide

Male 56%

Note: ages 15+; home and work locations Source: comScore Inc., "2013 Brazil Digital Future in Focus," March 14, 2013 157244

18-24 26%

35-59 24%

25-34 38%

www.eMarketer.com

Gender

Data from other sources also show how devoted internet users in Brazil are to social sites. IBOPE Media’s estimate for time spent on social media in January 2013 was almost nine times higher than time spent on video and movie sites that month.

Average Time Spent on Social Media and Video/Movie Sites by Internet Users in Brazil, Jan 2012 & Jan 2013 hrs:mins and % change Jan 2012

Jan 2013

% change

Social media sites

9:11

10:26

13.5%

Video and movie sites

1:37

1:52

14.8%

Source: IBOPE Media, "Net Insight" as cited in press release, Feb 19, 2013 155339

www.eMarketer.com

THE SOCIAL MIDDLE CLASS A growing economy and a boom in internet uptake are responsible for much of the recent growth of social network users in Brazil. Those who earned higher incomes were the first to go online. Today, growth is likely to be fueled by users in the lower-income segments of the middle class. These users are likely to access social sites with the same enthusiasm as their predecessors.

Mobile* 11%

D/E 5%

Age Tablet 9%

A/B 33% C 62%

Desktop 80%

Socioeconomic status

Primary device used

Note: *includes feature phones and smartphones Source: Navegg, "Perfil da Internet Brasileira," May 15, 2013 157649

www.eMarketer.com

The shifting economic profile of Brazil’s social media landscape is clearly evident in data from Instituto Data Popular. In 2009, the user bases for Facebook and Twitter in Brazil were predominately upper class. By 2012, middle-class users made up the majority for both networks. The pattern also held true, if less dramatically, for orkut, the early leader in Brazil’s social space, for which lower-income groups rose to 77% of total users in 2012, up from 66% in 2009.

January 2012 data from NIC.br and IBOPE Inteligência showed internet penetration close to saturation levels among Brazil’s higher income A and B socioeconomic classes, but that only about half of the country’s middle-income consumers were online.

BRAZIL SOCIAL MEDIA: THE MOBILE MIDDLE CLASS GOES SOCIAL

©2013 EMARKETER INC. ALL RIGHTS RESERVED 4

Facebook, orkut and Twitter Users in Brazil,

by Socioeconomic Status, 2009 & 2012 % of total

Mobile Phone Internet Users and Penetration in Brazil, 2011-2017

Twitter 2009

Mobile phone internet users (millions)

81% 16% 1%

—% change

2012 55%

24%

21%

Facebook 2009 64%

32% 4%

2012 24%

56%

20%

orkut 2009 50%

16%

2012 23% C

57%

20%

D/E

Source: Data Popular survey conducted by WebSIA as cited in press release, 157157

2012

2013

2014

2015

2016

25.2

38.3

53.1

72.1

93.5

112.2 120.8

www.eMarketer.com

THE MOBILE-SOCIAL MOVEMENT Brazil’s internet penetration rate is shifting toward mobile internet growth, and along with it, social media usage. This is the result of a double movement in which price-conscious middle- and lower-income consumers are going online via mobile because it is more affordable and allows pay-per-use flexibility, while wealthier internet users boost the still-expensive smartphone and tablet market. But what both groups have in common is the desire to be social anywhere and anytime. eMarketer’s May 2013 forecast shows Brazil’s mobile internet user base at 53.1 million users, or 26.4% of the country’s population. The penetration rate is expected to expand rapidly during the next few years, topping 58% in 2017.

2017

221.3% 52.0% 38.8% 35.7% 29.7% 20.0%

7.7%

—% of mobile phone users

21.2% 27.4% 37.2% 48.4% 60.2% 69.4% 72.8%

—% of internet users

31.8% 42.8% 53.5% 66.9% 82.2% 93.6% 98.0%

—% of population

12.7% 19.2% 26.4% 35.6% 45.8% 54.5% 58.3%

Note: mobile phone users of any age who access the internet from a mobile browser or an installed application at least once per month; use of SMS/MMS is not considered mobile internet access Source: eMarketer, May 2013 157235

34%

A/B

2011

www.eMarketer.com

As device prices drop and mobile network coverage and speed continue to improve, eMarketer expects smartphones to fuel more of Brazil’s mobile internet use in the coming years. Currently, Brazil still has a large base of feature phone mobile internet users, with smartphones owned by one-fifth of mobile phone users.

Smartphone Users and Penetration in Brazil, 2011-2017 Smartphone users (millions) —% change —% of mobile phone users —% of population

2011

2012

2013

2014

2015

2016

2017

12.1

22.2

29.7

39.9

51.3

60.5

70.5

250.2% 83.9% 33.8% 34.5% 28.6% 17.9% 16.6% 10.2% 15.9% 20.8% 26.8% 33.1% 37.4% 42.5% 6.1% 11.1% 14.8% 19.7% 25.1% 29.4% 34.0%

Note: individuals of any age who own at least one smartphone and use the smartphone(s) at least once per month Source: eMarketer, May 2013 157344

www.eMarketer.com

But phones with limited features haven’t stopped Brazil’s mobile users from accessing the internet and being highly social via those devices. Since 2010, TIM, one of Brazil’s “Big Four” mobile carriers, has offered Facebook access to clients without data plans. Oi, another large mobile operator, has a similar initiative running from May to September of this year.

When it comes to smartphone usage in Brazil, social takes the lead. A study from Informa and Qualcomm found that 42% of smartphone users listed social networks among their most-used features, just below internet browsing (44%) but above email (35%).

IBOPE Media’s “Mobile Report” from April 2013 showed a similar social inclination among smartphone users, as 78.8% of respondents indicated that social networks and instant messaging were the most-used site category accessed on their devices.

BRAZIL SOCIAL MEDIA: THE MOBILE MIDDLE CLASS GOES SOCIAL

©2013 EMARKETER INC. ALL RIGHTS RESERVED 5

Leading Mobile Website Categories Visited by Smartphone Users in Brazil, Feb 2013 % of respondents Social networks and/or instant messaging

Social Networks Used by Mobile Internet Users in Brazil, by Device, April 2012 % of respondents 78.8%

Email

75.9%

News

57.9%

Music

47.4%

Entertainment

43.8%

Note: n=700 ages 10+ Source: IBOPE Media, "Mobile Report" as cited in press release, April 23, 2013 156610

www.eMarketer.com

Mobile phone

Tablet

Facebook

63%

84%

MSN

49%

42%

orkut

46%

35%

Google+

27%

28%

Twitter

19%

28%

Skype

6%

16%

Instagram

2%

8%

foursquare

1%

4%

Note: ages 12+; excludes mobile broadband (dongles, laptops, etc.)

Source: F/Nazca Saatchi & Saatchi, "F/Radar: 11th Edition," Oct 2, 2012 151990

With Brazil still building its mobile infrastructure and the country’s currently spotty mobile broadband coverage, efforts to build out Wi-Fi networks should increase the number of users actively connecting to social network sites. Penetration and usage data for tablets, which are primarily Wi-Fi devices, seems to corroborate this.

A study from Fundação Getúlio Vargas, a higher-education institution and think tank, estimated there were close to 5 million tablets in use in Brazil as of April 2012. March 2013 numbers from International Data Corporation (IDC) project that 5.8 million additional tablets will be sold in Brazil this year.

Tablet Sales in Brazil, 2011-2013 millions and % change 5.8

171.0%

3.1 89.5%

1.1

www.eMarketer.com

Referral traffic data from Instituto Verificador de Circulação, Brazil’s sister organization to the US Alliance for Audited Media, signals just how important mobile is to the growth of social usage. In January 2013, some 20% of smartphone page impressions to websites with display advertising came from social media sites, compared with less than 10% from desktops. By December 2012, social networks originated almost the same amount of smartphone page views as search engines.

Primary Source of Smartphone Traffic* in Brazil, Jan 2011-Dec 2012 % of total Direct

Search engine

Jan 2011

45%

29%

8%

17%

March 2011

53%

21%

5%

21%

June 2011

51%

22%

6%

21%

Sep 2011

44%

25%

7%

24%

Dec 2011

34%

18%

15%

32%

March 2012

29%

20%

15%

35%

June 2012

28%

21%

14%

37%

Sep 2012

27%

24%

19%

30%

Dec 2012

26%

20%

21%

2011

2012

33%

www.eMarketer.com

2013

% change

Source: International Data Corporation (IDC) as cited in press release; eMarketer calculations, March 1, 2013 155828

Other

Note: numbers may not add up to 100% due to rounding; excludes search engines, social networks, government, ecommerce and foreign websites; *to websites with display ads Source: Instituto Verificador de Circulação (IVC), "Estudo sobre audiência de websites," April 22, 2013 158061

Tablet sales

Social network

www.eMarketer.com

In an April 2012 survey, F/Nazca Saatchi & Saatchi found that mobile internet users in Brazil more commonly turned to tablets than mobile phones to access social networks.

BRAZIL SOCIAL MEDIA: THE MOBILE MIDDLE CLASS GOES SOCIAL

TOP SOCIAL NETWORKS In September 2011, IBOPE reported that Facebook surpassed orkut as Brazil’s leading social network. By December 2012, Facebook achieved a dominant position.

Similarly, an October 2012 survey from Hello Research showed Facebook with 55 million users in Brazil, compared with orkut’s 30.4 million.

©2013 EMARKETER INC. ALL RIGHTS RESERVED 6

Social Network Users in Brazil, by Site, Oct 2012 millions Facebook

55.0

MSN

Top 10 Social Network Sites Among Internet Users in Brazil, Ranked by Unique Visitors, Dec 2012

36.9

orkut

comScore data, also for unique visitors, similarly showed Facebook with a commanding market position, and found Twitter challenging orkut for second place.

30.3

Unique visitors (millions)

Median age

1. Facebook

44.0

32.3

Source: Hello Research survey as cited by Folha de S.Paulo; eMarketer calculations, Dec 13, 2012

2. orkut

12.3

32.1

3. Twitter

9.2

31.6

151053

4. Ask.fm

8.5

28.0

5. LinkedIn

7.9

34.2

6. Tumblr

6.1

29.5

7. Badoo

1.8

35.4

8. deviantART

1.7

29.8

9. Vostu

1.4

33.8

10. Myspace

1.3

31.9

6.6

Google+

www.eMarketer.com

Named for the Google employee who developed the platform, orkut was a rapid success in Brazil, laying the foundation for the country’s adoption of social networking. Google has since launched its Google+ product, with its deep integration with the company’s maps and listings. While Google says it continues to support the orkut platform, the site shows signs of neglect: orkut’s advertising information link, for example, returns a missing page.

Visit data paints a starker picture, showing Facebook’s dominance. In February 2013, according to Serasa Experian Hitwise, more than 65% of all social media page views in Brazil were from Facebook, whereas orkut had barely 3% of the total. Less than two years earlier, orkut’s share was above 50% of all visits.

Top 10 Social Networks Among Internet Users in Brazil, Ranked by Market Share of Visits, April 2013 1. Facebook 66.54% 2. YouTube 18.48% 3. orkut 2.20% 4. Ask.fm 2.10% 5. Yahoo! Answers Brazil 1.80%

Note: ages 6+; PC only; home and work locations Source: comScore Inc., "2013 Brazil Digital Future in Focus," March 14, 2013 158063

www.eMarketer.com

The comScore and Hitwise data also showed significant usage of other social sites, such as Tumblr, LinkedIn and Ask.fm, a social Q&A website. comScore’s March 2013 ranking of top web properties in Brazil put Facebook at No. 4, with close to 44 million unique visitors, closely trailing Google’s sites and two of Brazil’s popular local portals, Terra and UOL. When ranked by average daily visitors, however, Facebook moved up to second, with almost 18 million daily users, behind only Google’s sites.

The social networks themselves are clearly paying attention to Brazil. Facebook, Twitter and LinkedIn have all opened offices in São Paulo. Brazil’s hosting of the 2014 FIFA World Cup and the 2016 Summer Olympics are likely to be significant to each company’s strategy for the country. Social media usage spiked during the 2012 Olympic Games in London and is likely to reach new heights for these next big international sporting events.

6. Twitter 1.75% 7. Badoo 1.05% 8. Bate-papo UOL 0.84% 9. Google+ 0.78% 10. Windows Live Home 0.57% Source: Serasa Experian Hitwise as cited in press release, May 21, 2013 158062

www.eMarketer.com

BRAZIL SOCIAL MEDIA: THE MOBILE MIDDLE CLASS GOES SOCIAL

©2013 EMARKETER INC. ALL RIGHTS RESERVED 7

HITTING THE SWEET SPOT FOR ENGAGEMENT Some brands initially saw Brazil’s quick adoption of social media as an exciting opportunity, and many rushed to social sites in hopes of amassing followers, fans and subscribers. But now, some are rethinking their social strategies.

February 2013 numbers from advertising agency Espalhe Marketing de Guerrilha showed engagement metrics among select brands in Brazil. The numbers varied widely, with seemingly no pattern that indicated why some companies garnered more Facebook fans vs. Twitter followers vs. YouTube subscribers.

Social Media Engagement Metrics for Select Brands in Brazil, Feb 2013 Facebook fans (millions)

Twitter followers

YouTube subscribers

Activita Brasil

0.8

1,500

1,000*

Arezzo

1.0

45,000

200

Bacardi Brasil

1.0

51,000

830

10.0

40,000

6,900

Chiclets

2.6

2,800

330

Magazine Luiza

0.7

68,800

8,000

Melissa

1.3

51,000

4,900

Renner

0.8

37,200

2,300

Stella Artois

2.9

6,200

320

Use Huck

0.7

7,900

9

Brahma Futebol

Note: *Danone Brasil's channel Source: Espalhe Marketing de Guerrilha, "indexSocial" as cited in press release, March 18, 2013 156105

www.eMarketer.com

The emerging consensus, though, is that when measuring success in the social space, quantity—number of fans—is not the same as engagement.

A May 2013 study from in-market consultancy Gauge found that Brazil’s social network users perceived a disconnect between the content that brands posted and the information that they, the users, sought on social sites. Less than 17% of Facebook users ages 26 and older, a demographic estimated to represent 54% of Facebook’s user base in Brazil, said they enjoyed humorous content posted on brand pages, which was perceived to be the most frequently used engagement effort on the social site. The research also found that that 93% of users ages 36 and older would “like” a page provided it offered content they considered useful and relevant.

BRAZIL SOCIAL MEDIA: THE MOBILE MIDDLE CLASS GOES SOCIAL

The study concluded that traditional media and offline habits still influence the way in which consumers relate to brands on Facebook. If consumers identify with a brand in the real world, they are more likely to value online social interactions around it. Meanwhile, a lack of relevant content can alienate even those inclined to be loyal brand consumers.

A 2012 report from E.Life found that the leading reason Brazil’s Facebook users “liked” a company or brand fanpage on the social network site was access to special offers and discounts. Other reasons that followed were interesting content (30.8%) and customer service (15.9%).

Leading Reason that Facebook Users in Brazil "Like" Facebook Fanpages of Companies and Brands, Feb 2012 % of total Special offers and discounts

35.2%

Interesting content

30.8%

Customer service Already a client 2.3%

15.9% 12.2%

Other people I know "like"/follow

Other 3.7% Note: n=1,023; numbers may not add up to 100% due to rounding Source: E.Life, "Behavioral habits in the use of Social Media by Brazilian Users," June 5, 2012 144422

www.eMarketer.com

The pattern for Twitter was similar; special offers and discounts topped the list of reasons why Twitter users in Brazil followed companies and brands.

Leading Reason that Twitter Users in Brazil Follow Companies and Brands on Twitter, Feb 2012 % of total Special offers and discounts

33.9%

Interesting content

29.4%

Customer service Already a client 1.9%

19.7% 11.3%

Other people I know "like"/follow

Other 3.8% Note: n=794 Source: E.Life, "Behavioral habits in the use of Social Media by Brazilian Users," June 5, 2012 144423

www.eMarketer.com

©2013 EMARKETER INC. ALL RIGHTS RESERVED 8

Consumers in Brazil welcome the idea of receiving customer assistance via social networks. Media consultant eCRM123 in December 2012 found that 94% of the country’s social network users favored the idea of receiving customer assistance through social media sites. Facebook was the site of choice for 78% of respondents, followed by Twitter and Google+, at 7% and 6%, respectively—not a surprise as responses correlated to the social networks’ usage levels.

A willingness to engage with brands for customer service suggests that social commerce could have a bright future in Brazil. Indeed, eCRM123’s study found that 77% of users had a positive attitude toward shopping and buying via social networks.

TV GOES SOCIAL AND SPORTS GROW ONLINE Social networks are deeply entwined in the growing trend of simultaneous media usage. A study from global network KPMG found that 37% of internet users in metropolitan areas of Brazil watched TV and used social network sites simultaneously in October 2012.

Simultaneous Media Activities of Internet Users in Metro Brazil, Oct 2012 % of respondents Watch TV & access the internet (not for social networks) via PC/laptop 57% Listen to the radio & access the internet (not for social networks) via PC/laptop 39% Watch TV & use a social network site 37% Watch TV & read newspapers 28% Watch TV & read magazines 28% Listen to the radio & read magazines 26% Listen to the radio & use a social network site 26% Listen to the radio & read newspapers 25% Watch TV & access internet (not for social networks) via a smartphone 20% Watch TV & access internet (not for social networks) via a tablet 12% Source: KPMG, "Digital Debate," Jan 21, 2013 155283

www.eMarketer.com

Ericsson saw a similar pattern in its survey, finding that in 2012, 73% of social network users in Brazil were connected to social networks while watching TV, up from 48% in 2011.

BRAZIL SOCIAL MEDIA: THE MOBILE MIDDLE CLASS GOES SOCIAL

©2013 EMARKETER INC. ALL RIGHTS RESERVED 9

Simultaneous Activities Performed While Watching TV According to Internet Users in Brazil, 2011 & 2012 % of respondents Browse the internet 65% 86% Eat in front of the TV 69% 79% Talk with others in the same room 63%

Indeed, an April 2013 eCRM123 survey on anticipated social media usage for the upcoming 2013 Confederations Cup—a FIFA World Cup warm-up tournament to be held in Brazil in June—found that 14% of Brazil’s internet users considered social networks the best media for keeping up with the matches, with Facebook being the preferred site, followed by Twitter. However, TV still came at the top for 79% of respondents. But the key here is that many of them will be using social media while watching TV, effectively boosting audience in both media.

75% Use social forums (e.g., Facebook, Twitter, Instagram, etc.)

48%

Preferred Media for Following the 2013 Confederations Cup According to Internet Users in Brazil, Feb-April 2013 % of respondents

73% Chat (e.g., MSN, Skype, Facebook chat) 40% 61% 2011

2012

Source: Ericsson, "TV and Video Consumer Trend Report 2012," Aug 28, 2012 154429

Social networks 14%

News sites 7%

www.eMarketer.com

Twitter is also a popular social network that users access while watching TV. E.Life found that in Brazil, sports and TV were among the top trending topics on Twitter in Q3 2012. The upcoming FIFA World Cup and Olympics are likely to make those topics even more popular.

Social networks Facebook

81%

Twitter

13%

Blogs

5%

Google+

1%

TV 79%

Media Note: n=130 Source: eCRM123, "Redes Sociais na Copa das Confederações Brasil 2013," April 8, 2013 157631

Leading Twitter Trending Topics in Brazil, Q1 2013 % of total Music

32%

TV

www.eMarketer.com

The research also found that when it came to soccer content, about one-third of Brazil’s internet users favored articles, followed by photos (23%) and videos (21%).

25%

News

10%

Sports

10%

Events

Favorite Soccer Content on Social Network Sites According to Internet Users in Brazil, April 2013 % of respondents

8% 5%

Infographics 5%

Commemorative dates

Movies 4% 3% 2%

Memes 10%

Internet & technology Politics

Videos 21%

Note: numbers may not add up to 100% due to rounding Source: E.Life, "Trending Topics Brasil" as cited in press release, April 11, 2013 158064

Other 8% Articles 33%

Photos 23%

www.eMarketer.com

Note: n=130 Source: eCRM123, "Redes Sociais na Copa das Confederações Brasil 2013," April 8, 2013 157632

BRAZIL SOCIAL MEDIA: THE MOBILE MIDDLE CLASS GOES SOCIAL

www.eMarketer.com

©2013 EMARKETER INC. ALL RIGHTS RESERVED 10

Twitter has responded to video interest through Twitter Amplify, a multiscreen advertising option that brings sponsored video content to users’ Twitter feeds. Sports tweets were the first to get the video content, with instant replays and highlights available through hashtags.

In a May 2013 interview from Reuters.com, Adam Bain, Twitter’s president of global revenue, discussed how the London Olympics experience successfully launched TV-coordinated tweets. And in the US, college football bowl games, the NCAA’s March Madness basketball tournament and the NBA’s 2013 Finals have also proved the concept. For the upcoming sporting events in Brazil, advertisers are likely to leverage Twitter’s TV integration in a similar way.

CONCLUSIONS Brazil’s rapidly growing middle class will fuel social growth. Brazil’s social population is already large, but growth rates remain strong because fully 50% of the country’s population is not yet online. Lower-income users accessing the internet for the first time are likely to be as enthusiastic about social platforms as earlier, wealthier adopters.

Mobile platforms will play a significant role in the growth of social media use in Brazil. Feature phones remain an important device in Brazil, offering flexible and affordable pricing. Limited-feature social platforms are likely to see significant use for as long as that is still the case.

Facebook dominates the landscape, despite orkut’s first-mover advantage. Other platforms are beginning to gain ground in Brazil, including Google+, Twitter, Tumblr and LinkedIn. After an early rush to garner fans and followers, some brands are reconsidering their social strategies.

Brazil’s social network users are open to engagement and even to purchasing via social platforms but express frustration that marketers are not delivering what they want: value in the form of discounts and offers, and more interesting content.

BRAZIL SOCIAL MEDIA: THE MOBILE MIDDLE CLASS GOES SOCIAL

©2013 EMARKETER INC. ALL RIGHTS RESERVED 11

EMARKETER INTERVIEWS Pedro Cruz Founder and Chief Marketing Officer Navegg Interview conducted on May 10, 2013

João Torres Communications and New Business Manager Insituto Verificador de Circulação (IVC) Interview conducted on April 30, 2013

RELATED EMARKETER REPORTS Brazil Online: An Increasingly Mobile Market Brazil Digital Ad Spending: A Growing Consumer Base Lures Marketers Online Brazil Ecommerce: Sports, Travel and Cheap Retail Maintain the Market’s Momentum Worldwide Social Network Users: 2013 Forecast and Comparative Estimates

RELATED LINKS Agência Nacional de Telecomunicações Centro de Estudos sobre as Tecnologias da Informação e da Comunicação comScore, Inc. Data Popular E.Life IBOPE IBOPE Nielsen Online Instituto Verificador de Circulação (IVC) Navegg

EDITORIAL AND PRODUCTION CONTRIBUTORS Cliff Annicelli Kaitlin Carlin Joanne DiCamillo Stephanie Gehrsitz Dana Hill Heather Price Nicole Perrin Allie Smith

Senior Editor Copy Editor Senior Production Artist Senior Production Artist Director of Production Copy Editor Associate Editorial Director Director of Charts

BRAZIL SOCIAL MEDIA: THE MOBILE MIDDLE CLASS GOES SOCIAL

©2013 EMARKETER INC. ALL RIGHTS RESERVED 12