State of the Internet Argentina

November 2010

Sebastian Yoffe, Country Manager Argentina & Uruguay, comScore Inc.

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Global Shaper Company 2010

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Worldwide UDM Penetration

Percentage of Machines Included in UDM Measurement

North America Canada United States 94% 91%

Latin America

Argentina Brazil Chile Colombia Mexico Puerto Rico

94% 92% 94% 95% 93% 92%

Europe Austria Belgium Switzerland Germany Denmark Spain Finland France Ireland Italy Netherlands Norway Portugal Sweden United Kingdom

Middle East & Africa

Asia Pacific Australia Hong Kong India Japan Malaysia New Zealand Singapore 91% 88% 84% 73% 87% 88% 91%

80% 85% 84% 84% 82% 90% 85% 91% 91% 80% 88% 84% 86% 85% 90%

Israel South Africa

93% 73%

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July 2010 Penetration Data

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Latin America and MidEast-Africa Are Growing Rapidly

Distribution of Global Internet Audience

Web users 15+ Accessing from a Home or Work Computer

The composition of the global online audience is constantly changing. The Latin American Internet audience grew 18% in the past year, and represents 8% of the global Internet audience. The online audiences in developing nations will continue to grow as internet penetration increases in those regions.
Latin America, 8%
Y/Y +18%

Middle East Africa, 8%

Y/Y +32%

North America, 16%

Y/Y +7%

Asia Pacific, 40%

Y/Y +7%

Europe, 28%
Y/Y +9%
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Internet Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, August 2010

Argentinas Growth Still High, but Outpaced by Others in Region

Internet Population (in Millions)
Web Users 15+ Accessing from Home and Work YOY Growth

With Internet usage already relatively mature in Argentina, its not surprising that growth there is leveling off when compared to others in region. The largest percentage growth was seen in Colombia, which increased its web H&W audience by 33% from Aug 09 to Aug 2010. In absolute terms, of course, Brazil added the most users, with a growth rate of 19% translating to 6 million new H&W web users in the past year.

Brazil Mexico Argentina Colombia Chile

31.5 +19% 37.5 13.8 16.7 +21% 11.5 12.8

+11% +33%

8.8 11.7
6.4 7.3 2.1 2.6 1.0 1.2

+13%

Venezuela
Puerto Rico

+26% +16%

Aug-2009
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Aug-2010

Internet Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, August 2010

Internet Population Growth & Consumption

13.0
12.5 12.0 23.4 22.9 21.5 21.6 21.6 21.3 22.2 22.4

26.8 27.1 27.2

30.0
25.6 26.0 25.0 20.0

11.5
11.0 10.5 11.2 11.5 11.8 12.1

12.7 12.7 12.7 12.8 12.8 12.5 12.6 12.7 12.3

15.0
10.0 5.0

10.0

0.0

Total Unique Visitors (MM)

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Hours per Visitor

Argentinean Internet Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, July 2009 to July 2010

Internet User Profile

Age
55+ 13.2 %

Gender

% Composition of Argentinian Internet Population

45-54 15.6 %

15-24 28.0 %
F 48.5% M 51.5%

35-44 17.6 %

25-34 25.5 %

15-24

31.1 23.5 23.4 24.1 25.4

M F

25.3 26.7

Average Hours per Visitor

25-34 35-44 45-54 55+

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Argentinian Internet Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, July 2010

Age Distribution Correlates with Internet Penetration

Among the Latin American countries, demographic distribution tracks very closely with levels of Internet penetration and relative maturity of the Internet market: young people are the traditional early adopters
Demographic Distribution of Internet Users By Age
Countries with High Internet Penetration

Chile Argentina Brazil Colombia Mexico

Venezuela

26% 28% 29% 48% 45% 49% 15-24 25-34

26% 26% 35%

21% 17%

15% 16% 21%

12% 13% 11% 5% 8% 10% 5% 8%

Medium Internet Penetration

23% 23% 25% 35-44 45-54 55+

19% 17% 16%

Low Internet Penetration

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Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, May 2010

Top Internet Properties in Argentina

% Reach of Argentinean Internet Population
Microsoft Sites Google Sites
FACEBOOK.COM Yahoo! Sites Grupo Clarin TARINGA.NET MercadoLibre Wikimedia Terra - Telefonica Grupo La Nacion 50.0 46.6 45.2 41.4 39.1 33.0 32.8

Average Minutes Per Visitor

Microsoft Sites Google Sites
FACEBOOK.COM Yahoo! Sites Grupo Clarin TARINGA.NET MercadoLibre 46.8 53.6 23.4 46.6 169.7 316.7

92.4
88.6 79.7

516.0

Wikimedia 10.0 Terra - Telefonica Grupo La Nacion 12.6 28.6

Top 10 Properties account for two-thirds of all time spent online in Argentina
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Argentinean Internet Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, August 2010

Reach of Key Categories

Percent of Argentinean Internet Population Visiting 20 Key Site Categories
Search/Navigation

87.3%
86.9% 76.5% 73.1% 72.7% 68.5% 68.4% 67.6% 63.2% 62.8%

Community

60.8%
55.2% 53.8% 53.0% 35.6% 33.8% 28.4% 25.3% 24.0% 23.7%

Social Networking
e-mail Instant Messengers Photos Directories/Resources News/Information Multimedia Blogs Retail

Games
Downloads Technology Sports Business/Finance Education TV Travel Automotive

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Argentinian Internet Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, September 2010

Share of Time on Key Site Categories

Share of Total Argentinean Internet Minutes on 20 Key Site Categories
Search/Navigation Social Networking e-mail Instant Messengers Photos Directories/Resources News/Information Multimedia Blogs 0.8% 2.5% 10.2% 22.3% 2.4% Community 1.0%

19.1%

Games Downloads Technology Sports Business/Finance Education TV Travel

2.9%
0.7% 0.4% 0.9%

1.1%
3.7% 4.9%

0.5%
0.1% 0.2% 0.2%

Retail

2.0%

Automotive

0.3%

Together, these 20 categories comprise 76.3% of all time spent online

Argentinean Internet Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, September 2010

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Older Audience Generates More Demand for News/Info Online

In light of the demographic distribution of Argentinas and Chiles Internet populations, it is not surprising that those two countries lead the region in visiting to News and Information sites. Along with Business/Finance and Retail, these categories are among those that are most likely to be visited by older web users.
News/Information % Reach Worldwide Asia Pacific Europe North America Latin America 63%

56%
67% 79%

61%

Brazil Mexico Argentina Colombia Chile

65% 60% 68% 57% 58% 53% 53%

Venezuela
Puerto Rico

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Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, September 2010

Many News/Info Providers Give Wide Range of Choice

Grupo La Nacion and Clarin.com lead the News/Information category in terms of reach.

Top News/Info Sites: Argentina

% Reach
Grupo Clarin
Grupo La Nacion Grupo Perfil 30.5

Top News/Info Sites: Argentina

Average Minutes per User
47.7 Grupo Clarin
Grupo La Nacion 22.9 56.9

10.5 10.2
6.7

Grupo Perfil INFOBAE.COM

Yahoo! News Network 6.9

26.1
30.1

INFOBAE.COM
Yahoo! News Network

ELMUNDO.ES MSN News

LAVOZ.COM.AR

6.3 5.8
5.0

ELMUNDO.ES
MSN News LAVOZ.COM.AR

3.2
2.9 31.6

Diario El Dia Hispanic Digital Network

3.8
3.7

Diario El Dia
Hispanic Digital Network

45.4
33.8

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Argentinean Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, August 2010

Argentina 3rd behind Chile and Venezuela for Social Networking Reach
Social Networking is relatively high throughout the region, though highest in Chile, where reach is at 92 percent. Argentinas reach matches the regional average.
Social Networking % Reach Worldwide Asia Pacific Europe North America Latin America 71% 51% 83% 88% 87%

Brazil

86% 87% 87% 86%

Mexico
Argentina Colombia

Chile
Venezuela Puerto Rico

92%
89% 83%

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Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, September 2010

High Social Networking Reach in Argentina is Driven by Facebook

Facebook is the clear Social Networking leader in Latin America, both in terms of reach and usage. Photo sharing sites are also very popular in the region.

Top Social Networks: Argentina

% Reach
FACEBOOK.COM
Windows Live Profile FOTOLOG.COM 29.2

Top Social Networks: Argentina

Average Minutes per User
79.7 FACEBOOK.COM
Windows Live Profile 4.8 316.7

16.9 12.5
9.6

FOTOLOG.COM TWITTER.COM
SONICO.COM

33.4
21.7 12.6

TWITTER.COM
SONICO.COM

SLIDESHARE.NET LINKEDIN.COM
METROFLOG.COM

6.6 5.3
4.5

SLIDESHARE.NET
LINKEDIN.COM METROFLOG.COM

1.9
12.2 27.9

BADOO.COM NING.COM

3.8
3.7

BADOO.COM
NING.COM 9.6

101.8

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Argentinean Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, August 2010

Significant Growth for Facebook and Twitter in the past year

Twitters reach increased fivefold in Argentina in the past year. Facebook also made significant increases over the same time period. Visiting to Fotolog and Metroflog declined significantly in the past year, perhaps due to users relying more on Facebooks photo sharing capabilities rather than using a separate service.
Social Networks % Reach FACEBOOK.COM Windows Live Profile FOTOLOG.COM TWITTER.COM SONICO.COM SLIDESHARE.NET
29.2 28.3
16.9 26.9 12.5 2.5 9.6 9.5 6.6 3.5 5.3 0.7 4.5 11.6 3.8 3.8 3.7 2.5 79.7 56.9

LINKEDIN.COM
METROFLOG.COM BADOO.COM NING.COM Aug-10

Aug-09

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Argentinean Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, August 2010

IM is Key Communication Channel for Web Users in Argentina

Instant Messengers take up a large percent of Argentinean web users time online. Seven out of ten web users in Latin America used an Instant Messenger in August, a rate that is much higher than elsewhere in the world.
Instant Messengers % Reach Worldwide Asia Pacific Europe North America Latin America 49%

49%
46% 32% 72%

Within Latin America, Argentinas 73 percent IM reach is roughly on par with Brazil and Colombias.

Brazil Mexico Argentina Colombia Chile

72% 79% 73% 71% 68% 63% 38%

Venezuela
Puerto Rico

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Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, September 2010

IM Services in Argentina Provided Primarily by Microsoft

Windows Live Messenger accounts for the vast majority of Instant Messenger usage in Argentina. Skype, Google Talk, and Yahoo! Messenger also get significant usage on a per-user basis.

Top Instant Messengers: Argentina

% Reach
Windows Live Messenger
EBUDDY.COM Yahoo! Messenger 2.7

Top Instant Messengers: Argentina

Average Minutes per User
66.5 Windows Live Messenger
EBUDDY.COM 17.8 469.4

2.6

Yahoo! Messenger
Skype Instant Messenger (App) Skype Instant

52.2
55.3 3.2

Skype Instant Messenger (App) 0.9 Skype Instant

PLUGOO.COM

0.6

PLUGOO.COM

Meebo Messenger IM

0.4

Meebo Messenger IM

7.0

SOMOSMESSENGERSIEMPRE.COM 0.4 SOMOSMESSENGER

SOMOSMESSENGERSIEMPRE.COM 1.1 SOMOSMESSENGER

XFire

0.4

XFire

1.6

Google Talk (App) SIGHTSPEED.COM

0.2
0.2

Google Talk (App)

SIGHTSPEED.COM 12.2

165.1

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Argentinean Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, August 2010

Online Retail Still in Infancy in Latin America

E-Commerce is still in its infancy in most of Latin America, but its clear that consumers visit retail/product sites and comparison shop online even when they are not yet confident of the security of online transactions, or would otherwise prefer to make their actual purchases offline.
Retail % Reach Worldwide Asia Pacific 64% 57% 71% 82% 64%

Europe
North America Latin America

Among the Latin American countries, the relative maturity of Argentinas Internet audience is not necessarily reflected in its rate of visiting to Retail sites. Brazil still far outpaces the rest of the region when it comes to shopping and researching purchases online.

Brazil Mexico Argentina Colombia Chile Venezuela Puerto Rico

71% 63%

63%
54% 58% 55% 63%

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Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, September 2010

Online Travel in Latin America is Also Still Developing

Like online retail, the use of online travel sites is still very infrequent in Latin America. Less than a quarter of web users in Latin America use Online Travel sites, which include Travel Information sites as well as Flight, Hotel, Car Rental, and Cruise sites.
Travel % Reach Worldwide Asia Pacific Europe North America Latin America 23% 32%

23%
42% 46%

Penetration of roughly 24% is similar among all countries in Latin America, with Puerto Ricos being slightly higher and Venezuelas slightly lower.

Brazil Mexico Argentina Colombia Chile

24% 25% 24% 20% 22% 18% 27%

Venezuela
Puerto Rico

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Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, September 2010

Individual Travel sites Penetration Rates Still in Low Single Digits

Twenty-four percent reach for the entire category translates to individual sites penetration rates in the low single digits. Latin American travel site Despegar.com leads the category.

Top Travel Sites: Argentina

% Reach
DESPEGAR.COM
Expedia Inc RUTA0.COM 2.8

Top Travel Sites: Argentina

Average Minutes per User
3.3 DESPEGAR.COM
Expedia Inc 4.7 11.3

2.1 1.7
1.6

RUTA0.COM LanChile S.A.

COMOVIAJO.COM

6.5
11.9 6.5

LanChile S.A.
COMOVIAJO.COM

AEROLINEAS.COM.AR
ARGENTINATURISMO.COM.AR

1.5 1.2
1.1

AEROLINEAS.COM.AR
ARGENTINATURISMO.COM.AR Priceline.com Priceline.com Incorporated TURISMOENTRERIOS.COM

8.2
2.4 6.5

Priceline.com Incorporated
TURISMOENTRERIOS.COM

0.8
0.8

7.1
1.8

PARAGUAY.COM

PARAGUAY.COM

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Argentinean Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, August 2010

Entertainment Sites Draw a Significant Audience

Eighty-two percent of web users in Latin America visited an Entertainment site in September. Even in countries where Internet penetration and broadband availability are low, there is a high level of interest in this category. Visiting to Entertainment sites is typically led by Multimedia and sites that serve video or music content. Online video and music are also propagated more readily in regions and countries where Social Network usage is high, which is certainly the case in Latin America.
Entertainment % Reach Worldwide Asia Pacific Europe 79% 72% 84% 87% 82%

North America
Latin America

Brazil
Mexico Argentina Colombia Chile Venezuela Puerto Rico

80%
84% 80%

81%
84% 80% 76%

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Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, September 2010

YouTube and Music Sites Top Entertainment Sites in Argentina

YouTube continues to be very popular in Argentina, and music sites are unsurprisingly also very popular in the country. Vevo, in particular, has been successful in penetrating this market.

Top Entertainment Sites: Argentina

% Reach
YOUTUBE.COM
MUSICA.COM VEVO 20.3

Top Entertainment Sites: Argentina

Average Minutes per User
57.3 YOUTUBE.COM
MUSICA.COM 10.3 117.4

16.5 13.5
11.6

VEVO AOL Music

Batanga

10.3
3.8 24.9

AOL Music
Batanga

Viacom Digital MSN Entertainment

CBS Interactive

10.6 10.3
10.1

Viacom Digital

7.9

MSN Entertainment 3.8 CBS Interactive 5.8

.FOX DAILYMOTION.COM

7.1
6.6

.FOX
DAILYMOTION.COM

11.8
4.2

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Argentinean Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, August 2010

Above-Average Online Gaming Indicative of Older Audience

It may be surprising to some that an above-average interest in Online Gaming in Argentina may be indicative of its generally older audience, when compared to the rest of Latin America. Online Gaming has long been considered the province of young males, but recently, older and mid-aged women have become increasingly likely to visit the category. This is due to the availability and popularity of casual, board, and solitaire games such as Scrabble, Sudoku, and crosswords, as well as their increasingly common tie-ins to Social Networks for online gaming with friends.
Online Gaming % Reach Worldwide Asia Pacific Europe North America Latin America 38% 33% 42% 42% 41%

Brazil

41% 39% 45% 40%

Mexico
Argentina Colombia

Chile
Venezuela Puerto Rico

45%
48% 28%

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Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, September 2010

ARGENTINA: ONLINE SEARCH ACTIVITY

qSearch August 2010

Argentinean Searchers 12 million unique searchers 94% of Argentinean Internet population Average 142.6 searches per searcher Total Searches in Argentina 1.7 billion searches 2.5 billion search result pages 408 million search visits

Share of Searches by Property

FACEBOOK.COM, 7%

Google Sites 83%

CONDUIT.COM, 4% Yahoo! Sites, 2% Microsoft Sites, 1% All Others, 2%

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Argentinean Internet Audience 15+ accessing Internet from Home or Work Source: comScore qSearch, August 2010

ARGENTINA H/M/L SEGMENTS

Segment Metrix August 2010

Share of Total Visits, Minutes, and Pages by Heaviness of Internet Usage

20% 51% 61% Heavy

30%

63%

Moderate
50% 37% 30% 31% 8% Pages Light

12%
Unique Visitors Visits

7% Minutes

The heaviest Internet users consume the vast majority of pages. How do you reach the lightest Internet users?

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Argentinean Internet Audience 15+ accessing Internet from Home or Work Source: comScore Segment Metrix, August 2010