Discover how Latin America lives online

1. Discover how Latin America lives online

2. Digital Life: What makes this a landmark study? Global scope, local expertise Survey data from each of the 46 markets covered by this study is analysed by our local country experts. This ensures that each report delivers actionable insight which includes local issues as well as global and regional trends. That goes ‘Beyond Behaviour’ People are not made of numbers, page views, or clicks. They are made of attitudes, needs, and motivations. TNS uncovers these to provide unique insights to help drive marketing success in the digital world. To address critical business issues This study provides a framework for both strategic and tactical deployment of marketing resources across channels and digital platform, geographies, sectors and consumer target groups.

3. Digital Life covers 46 markets and 88% of global internet usersA guide to the Digital Life regions and countries Northern and Western Europe Austria, Belgium, Denmark, Finland, France, Germany, Luxembourg, The Netherlands, Norway, Sweden, UK Middle East and North Africa Egypt , Morocco, Saudi Arabia, UAE Emerging Asia Indonesia, Malaysia, Philippines, Thailand, Vietnam Southern and Eastern Europe Estonia, Greece, Israel, Italy, Poland, Portugal, Russia, Spain, Turkey, China China (Tier 1-3 Cities) North America Canada, USA Latin America Argentina, Brazil, Mexico India India (all tiers) Developed Asia Australia, Hong Kong, Japan, Korea, Singapore, Sub-Saharan Africa Kenya, Nigeria, South Africa, Tanzania, Uganda

4. Agenda What is the state-of-play in the digital landscape? 1 How and to whom do we tailor the message? 2 How do we maximize opportunities with the digital consumer? 3

5. What is the state of play in the digital landscape? 1 The size and structure of the digital medium The hierarchy of digital activities “The internet is everywhere, but it is not everywhere in the same way” (IenAng)

6. Internet penetration in Latam and Argentina is slightly above the global average. Internet World Stats / S5: How often access Bases: Total n=48804

7. Internet penetration in Argentina still shows big differences per segments… Internet penetration per segment % accessed internet in the last 30 days MALE FEMALE Internet access in the last 30 days. Base: n=1000. Source: TNS Argentina. Septiembre 2010.

8. … but digital consumers continue growing. Evolution % accessed internet in the last 30 days Internet access in the last 30 days. Base: n=1000. Source: TNS Argentina. 2000, 2005, 2010.

9. Internet access growth is driven by Argentinean on lower level incomes % Access the internet within the last 2 years 19% among those with lower income 8% S6. First use of Internet Base: Total Global, LAm, Arg; 48804/2652/649

10. Daily usage of TV is still higher than Digital Media among Latam internet users % internet users accessing daily 1. Digital: 61% 2. TV: 54% 3. Radio: 38% 1. TV: 68% 2. Digital: 53% 3. Radio: 44% S5: How often access / i10: Usage of offline media Base: All respondents 48804, 2652, 900, 649, 1103

11. Spend is big and rising

12. What is the state of play in the digital landscape? 1 The size and structure of the digital medium The hierarchy of digital activities “The internet is everywhere, but it is not everywhere in the same way” (Ien Ang)

13. What do we do when we are online?A guide to digital activities Purchasing online, whether it be groceries, cinema tickets, clothing, gifts, flights or services Connecting and sharing with others online, uploading pictures to a photo sharing site or internet dating Browsing for things to buy online or offline; e.g. consumer reviews, websites, search engines Personal email account. Checking inbox, writing and composing email messages Keeping up to date with current affairs, sports, culture and the weather Source general information & learn online. Includes: ‘Googling’ online encyclopedias and self educating online etc Specialty websites that help you pursue your personal interests & hobbies or a blog/forum you read or write Planning & organising your life online, including journey planners, using maps services Watching video, listening to music or radio streaming or watching on-demand TV programs Using internet banking, paying or checking your bills, topping up mobile phone/travel cards, doing tax return etc Games you play on or via the Internet, either single-player games or multi-player games (not via a console)

14. Heavy usage of Social Media, e-mail and Multimedia in Latam drives their level of engagement while e-Commerce is low in the region • % doing activity daily I1: Frequency of online activities Base: All respondents, n=48804, 2652

15. Despite much lower daily use, social networking attract a similar volume of usage to email • I3: Importance of online activitiesBases: All respondents 48804

16. For the emerging world, digital is a transformational media % online users who agree that: ‘In the online world, I can better express my feelings’ 41% among women, 34% among men 37% L3: Agreement with statements Base: Totals (Global, Argentina; n =48804, 649)

17. Engagement with digital media is not proportional with internet access… Engagement Behavior Digital Consumption How often I use the internet Hours online by activity How often I do each activity Attitudes Digital Involvement Attitudes to using the Internet Attitudes to digital communication platforms Relevance of our digital life and our digital consumption explains our digital engagement…

18. Despite lower daily internet usage, Latam shows relatively higher engagement with digital media… Internet World Stats / S5: How often access Bases: All respondents n=48804

19. …and this phenomenon is led by Brazil matching other less developed countries who lead the engagement ranking. Ranking of online users highly engaged • Digital Engagement Score Bases: All respondents 48804

20. The future is digital…the future of digital is MOBILE

21. Much of future growth will be driven by mobile phone. I6: Future development of activities Bases: All respondents 48804 Future increase in activities I6: Change in future activities use Base: All respondents, n=48804, 2652, 900, 649, 1103

22. Mobile: The fastest technology adoption in history! Cellular mobile subscriptionsInternet usersFixed telephone linesMobile broadband subscriptionsFixed broadband subscriptions Today mobile is the personal technology most popular and widespread on the planet, with4.6 billion subscriptions worldwide by the end of 2009. Source: ITU World Telecommunication/ICT Indicators Database. 2009

23. There have been four key drivers… Immediacy attraction:“here and now” Better user experience Unlimited data plans Marketing and apps development

24. Implicit digital consumer needs covered Adventure, competition Fun, amusement Standing out, feeling confident Sociability, sharing and community Acceptance, a sense of belonging Organization, knowledge and mastery Fun, amusement

25. Needs which are catered for by the most frequent online activities span an axis between social entertainment and personal management Dominant Consumer Needs NeedScope profiling of activities.

26. Social networking in Latam closely connected to fun and entertainment, but more affiliative globally: activation strategies need to differ across regions NeedScope profiling of activities.

27. Internet users in Argentina show higher usage of digital activities than global average... Argentina ranks 5th on daily usage of Social activities There are still strong barriers to e-Shopping! ... but not in all ...

28. e-Shopping in LatamOnline buying and pre-purchase browsing • Compared to the rest of the world, Latam is still behind in online purchasing. However, Internet is widely used as a source of information search prior to purchase. • 7 out of 10 internet users browsed for information about brands and only 3 out of 10 internet users in Argentina bought online in the last month. • Argentina 68% 29% • Brazil 89% 57% • México 65% 38% % did pre-purchase browsing vs. Online shopping(last month) Fuente: TNS Digital Life, 2010

29. ¿Why don´t we buy online? Functionals users show lower e-Shopping levels than rest of users. Which attitude towards Internet characterize this group? “I am concerned about data protection and privacy in the internet”

30. Lack of trust in Institutions (*) Political parties: 1986 * 2007 TNS Gallup Argentina - National sample adult population

31. Lack of trust in Institutions To what extent do you perceive the following categories to be affected by corruption in this country? Would you be willing to pay more to buy from a company that is clean/corruption free? YES: Fuente: Barómetro CIMA 2008 – Muestra nacional población adulta

32. …and also lack of interpersonal trust! Generally speaking, would you say that most people can be trusted or that you need to be very careful in dealing with people?

33. …and also lack of interpersonal trust! Fuente: WVS – TNS Gallup Argentina 2006 Muestra nacional población adulta

34. Confidence and security are critical needs for e-Shopping in the region. NeedScope profiling of activities.

35. How and to whom do we tailor the message? 2 • Brand alignment to consumer groups

36. INFLUENCERS The internet is an integral part of my life. I’m young and a big mobile internet user and generally access everywhere, all of the time. I’m a blogger, and a passionate social networker. I’m also a big online shopper, even via my mobile. I want to make sure as many people as possible hear my online voice. NETWORKERS The internet is important for me to establish and maintain relationships.I have a busy life whether it’s my profession or managing the home. I use things like social networking to keep in touch with That said I’m not really the kind of person to voice my opinions online. ASPIRERS I’m looking to create a personal space online. I’m very new to the Internet and I’m accessing via mobile and internet cafes but mostly from home. I’m not doing a great deal at the moment online but I’m desperate to do more of everything, especially from a mobile device. COMMUNICATORS I just love talking and expressing myself, whether that’s face to face, on a fixed line, mobile or on social networking sites, instant messaging or just emailing people. I really want to express myself in the online world in the way that I can’t in the offline one. FUNCTIONALS The internet is a functional tool, I don’t want to express myself online. I like emailing, checking the news, sport & weather but also online shopping. I’m really worried about data privacy and security. I am older and have been using the internet for a long time. KNOWLEDGE-SEEKERS I use the internet to gain knowledge, information and to educate myself about the world. I’m not a big user of social networks but I do want to hear from like-minded people especially to help me make purchase decisions. Digital Lifestyles Base: All respondents, n=48804

37. On the digital consumer engagement map, the relationship between behavior and attitude towards digital is not linear Internet is pivotal Is the centre of my life Internet is commoditized Makes my life more efficient HIGHCONSUMPTION LOW INVOLVEMENT HIGH INVOLVEMENT Internet is aspirational Helps me achieve my goals Internet is irrelevant Not a big part of my life LOWCONSUMPTION Digital Lifestyles – ver el anexo de la metodología Base: All respondents, n=48804

38. Digital Lifestyles – see methodology pack Bases: All respondents Digital Life Styles: A global view Functionals Functionals Functionals Networkers Influencers Influencers Functionals Networkers Communicators Influencers Knowledge Seekers Communicators Aspirers Influencers Influencers Aspirers Aspirers Knowledge Seekers Aspirers Digital Lifestyles Base: Allrespondents, n=48804

39. Size segments by region: Functionals tend to dominate in NW Europe, NAM and Dev. Asia, while Influentials tend to dominate in India and China % incidence % Digital Lifestyle per regiòn Digital Lifestyles Base: Allrespondents, n=48804

40. Digital Engagement Digital Activities L L H L “The internet is a practical tool” Meet the FUNCTIONALS Who? Involvement Digital Engagement Male Female Consumption L Younger Older Employed Not employed Digital Attitudes Brand interaction Frequency of internet access I am concerned about data protection and privacy in the internet Open to brands Brands are intrusive Low High Number of friends Level of online purchasing (out of six) 5th Internet helps me connect with other like-minded individuals In the online world, I can better express my feelings The Internet improves the relationships I have with other people Above average touchpoints ONLINEOFFLINE Branded sites Offline media Retailer sites Retail shop Price comparison Offline WOM Search engine User review on blog Review sites Social network comments N America N/W Europe S/E Europe Dev Asia Where? Segmentación Global . Ver pack metodológico para detalles Base: Functionals 8324

41. Digital Engagement Digital Activities H L H L “I’m looking to create a personal space online” Meet the ASPIRERS Who? Involvement Digital Engagement Male Female Consumption L Younger Older Employed Not employed Digital Attitudes Brand interaction Frequency of internet access Open to brands Brands are intrusive The Internet improves the relationships I have with other people In the online world, I can better express my feelings Internet enables me to belong and be accepted by my friends Low High Number of friends Level of online purchasing (out of six) 6th Above average touchpoints ONLINEOFFLINE Branded sites Offline media Retailer sites Retail shop Price comparison Offline WOM Search engine User review on blog Review sites Social network comments India Emerg Asia MENA SSA Where? I can´t imagine a life without the internet anymore Life without the internet would be a lot less fun Segmentación Global . Ver pack metodológico para detalles Base: Aspirers 7753

42. Digital Engagement Digital Activities H H L H L “The internet is important for me to establish and maintain relationships” Meet the NETWORKERS Who? Involvement Digital Engagement Male Female Consumption Younger Older Employed Not employed Digital Attitudes Brand interaction Frequency of internet access The Internet improves the relationships I have with other people I can´t imagine a life without the internet anymore Internet helps me connect with other like-minded individuals Open to brands Brands are intrusive Low High Number of friends Level of online purchasing (out of six) 4th Above average touchpoints ONLINEOFFLINE Branded sites Offline media Retailer sites Retail shop Price comparison Offline WOM Search engine User review on blog Review sites Social network comments In the online world, I can better express my feelings Internet allows freedom of expression that I don´t have in the offline world N America N/W Europe S/E Europe Where? Segmentación Global. Ver pack metodológico para detalles Base: Networkers 8322

43. Digital Engagement Digital Activities L H L “I use the internet to gain knowledge, information and to educate myself” Meet the KNOWLEDGE-SEEKERS Who? Involvement Digital Engagement Male Female Consumption M Younger Older M Employed Not employed Digital Attitudes Brand interaction Frequency of internet access I am concerned about data protection and privacy in the internet Internet allows freedom of expression that I don´t have in the offline world Open to brands Brands are intrusive Low High Number of friends Level of online purchasing (out of six) 3rd Internet enables me to belong and be accepted by my friends In the online world, I can better express my feelings I can´t imagine a life without the internet anymore Above average touchpoints ONLINEOFFLINE Branded sites Offline media Retailer sites Retail shop Price comparison Offline WOM Search engine User review on blog Review sites Social network comments S/E Europe LatAm Where? Segmentación Global. Ver pack metodológico para detalles Base: Knowledge Seekers 8409

44. Digital Engagement Digital Activities H H H H MeettheCOMMUNICATORS “I just love talking and expressing myself” Who? Involvement Digital Engagement Male Female Consumption Younger Older Employed Not employed Digital Attitudes Brand interaction Frequency of internet access Open to brands Brands are intrusive In the online world, I can better express my feelings Life without the internet would be a lot less fun Internet allows freedom of expression that I don´t have in the offline world Internet enables me to belong and be accepted by my friends Low High Number of friends Level of online purchasing (out of six) 2nd Above average touchpoints ONLINEOFFLINE Branded sites Offline media Retailer sites Retail shop Price comparison Offline WOM Search engine User review on blog Review sites Social network comments China Emerg Asia Where? Segmentación Global. Ver pack metodológico para detalles Base: Communicators 7779

45. Digital Engagement Digital Activities H H H H L MeettheINFLUENCERS “The internet is an integral part of my life” Who? Involvement Digital Engagement ALL Male Female Consumption Younger Older Employed Not employed Digital Attitudes Brand interaction Frequency of internet access Internet allows me to stand out and be different Internet allows freedom of expression that I don´t have in the offline world Internet enables me to belong and be accepted by my friends In the online world, I can better express my feelings Open to brands Brands are intrusive Low High Number of friends Level of online purchasing (out of six) 1st Above average touchpoints ONLINEOFFLINE Branded sites Offline media Retailer sites Retail shop Price comparisonOffline WOM Search engine User review on blog Review sites Social network comments S/E Europe MENA India China Dev Asia Where? I am concerned about data protection and privacy in the internet Segmentación Global. Ver pack metodológico para detalles Base: Influentials 8217

46. S6, when started using the internet Base: All respondents, n=7753 (aspirers) , 8324 (functionals) , 8409 (knowledge seekers), 8322 (networkers) , 7779 (communicators), 8217 (influencers) The most engaged consumers are some of the newest to digital, coming from emerging markets • % who started using the internet in last two years

47. Digital Lifestyles – see methodology pack Base: All respondents, n=48804, 2652, 900, 649, 1103 Larger proportions of Aspirers in the region and fewer Influencers and Communicators. Brazil reveals highest percentage of Influencers and Communicators. % size of segments Main Digital Lifestyle

48. How do we maximize opportunities with the digital consumer? 3 Brand alignment with the path to purchase and social media

49. Internet users in Latam have both highest average number of friends on Social Networks and are connected to the most brands. Connections on social networks N10: Brands connected to on social networks / N11: Friends connected to on social networks Base: All respondentsusing SN, n=40819

50. Influencers and Communicators have the largest social influence groups: both social and branded. Connections on social networks N10: Brands connec. to SN / N11: Friends connect. to SN Bases: Social networkers 40819 / 597 / 69 / 77 / 69