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MARKET REPORT, LATIN AMERICA Next step up the social ladder


The Latin American online market is characterised by low penetration but high engagement. Valentina Vescori and Aixa Rocca talk of ways in which to grow social networks in the region


Latin Americans are less frequent internet users than their counterparts across the globe, yet more than 95% of those online have a social network profile, illustrating the platform’s great growth potential in the region. Internet penetration in Latin America


is low, yet it continues to grow year- on-year and recent Comscore data shows that users are heavily engaged when online. Latinos also choose social networks over emails to keep in touch with friends, family and colleagues. Despite Facebook having a growing dominance in the region – Latin America accounts for 10% of its total users – it faces competition from local players, Sonico in Argentina and Orkut in Brazil, both with a strong and growing following. Sonico was launched in 2007 by


two Argentine businessmen, Tomás O’Farrell and Rodrigo Teijeiro. By June of 2008 it had already gathered 10 million users, growing to 30 million by December of the same year. At the end of 2009, it opened its


Brazilian office and in January launched operations in Miami to deal with foreign advertisers and agreements related to the Hispanic US population, where Sonico’s presence is strong. Today, it has more than 45 million registered users, 76% of whom are from Latin America. In Argentina, the second most heavily


engaged country in the region after Brazil, Facebook has just over 6 million users, while Sonico reaches 3.5 million.


Opportunities for advertisers, however, are still to be realised. E-commerce is an important niche for social networks in Latin America that has yet to be exploited. Even though online shopping is growing, it is far from going mainstream because of the lack of trust characteristic of the region. This is blocking the work that social networks could be doing with brands wishing to gain presence here by widening their investments in social networks using a revenue share business model. Privacy has also been identified as


a key concern for internet users in the region. Facebook continues to struggle with this issue but Sonico has come up with a solution that it thinks appeases its Latin American consumer. Its answer is to divide profiles into three clusters: personal, professional and public. “The key to our rapid growth is the


bond we have created with our users,” says a Sonico spokesman. “We believe we are more capable than foreign social networks to interpret the needs, tastes and tendencies of the Latin user.”○


LATAM SOCIAL NETWORKING AUDIENCE: AGE 15+


1. Total internet


2. Social networking 3. Facebook.com 4. Orkut


5. Twitter.com 6. Sonico.com


Unique visitors (000) 101,149 83,951 53,219 26,476 12,837 8,100


Source: Comscore Media Metrix, March 2010


SIN 60ECONDS LATAM


LatAm presence set to grow for Associated Press u Mobile Entertainment Forum announces LatAm board u R/GA expands with Brazilian launch


Argentina sees ad spend boost u Online revenue up in Mexico


u Interpublic Group acquires Brazilian agency u Stronger LatAm presence for Publicis Groupe, as it acquires 5% stake in Brazilian ad agency Taterka u Online ad spend up 24% in Mexico u Adspend in Argentina up nearly 40%


Brazilian telecoms regulator Anatel gets set for new MVNOs


Agencies hit by Chilean earthquake


For the latest social media figures go to mandmglobal.com/


Local players: popular Facebook alternatives CREAM OF LATAM: MARKETING INNOVATION


CAMPAIGN: Nike – ‘Five runners, 650,000 followers’ MARKET: Argentina


Nike wanted to broaden the scope of its 10k run called ‘The Human Race’ to appeal not only to the runners but also to those who didn’t participate. Nike recruited five celebrity runners and rigged them up with a mobile phone and an earpiece. By pressing a button, runners were able to share their experiences with the world using a combination of voice data, Twitter


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and Google Maps in real time. The voice messages were turned into text messages published at thehumanrace. com.ar/envivo, in their Twitter accounts, banners and digital media. GPS allowed each communication to be geo-tagged along the way. More than 650,000 people followed the race live and online either at www.NikeCorre.com or through other media. 15,000 ran it. ○


M&M Q2 2010 55


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