Monday 12 January
2009, San José, Costa
Rica
Internet Use Booming In
Latin America
By Joseph A. Mann Jr.
Personal Internet use is
growing by leaps and
megabytes in Latin
America, driven by the
availability of more
affordable computers, an
expanding broadband
network and the appeal
of a range of new cyber
features.
New users in the region
are attracted by
familiar applications
like e-mail, instant
messaging and quick
access to news and
information on the Web,
but features such as
social networking,
online bill payment and
digital entertainment
also are proving
popular.
A recent marketing study
of 10 Latin American
nations and Puerto Rico
projected the regional
residential base of
Internet users would
reach 160 million in
five years, up from more
than 100 million now.
The survey, conducted by
Pyramid Research for
Google, also forecast
large increases in
Internet advertising and
online shopping.
DRAMATIC GROWTH
The recent expansion of
Internet users in Latin
America has been
dramatic. In 2007, for
example, Colombia added
5.4 million Internet
users, or about 12
percent of its
population of 45
million, according to a
Morgan Stanley report.
This represented an 80
percent increase in the
number of Colombia's
Internet users that
year.
The same report said
that Brazil added 7.4
million Internet users
in 2007 (17 percent
growth); Mexico more
than 2.2 million (an 11
percent increase) and
Venezuela 1.58 million
(38 percent growth).
In contrast, the United
States added 9.8 million
net Internet users that
year, for an increase of
5 percent.
Companies that earn
revenue from Internet
advertising such as
Google, Microsoft,
Yahoo, AOL and others,
are keen to capitalize
on Latin America's
growth potential, and
expect continued
expansion over the
medium term despite the
world economic slowdown.
''Latin America for us
is the fastest-growing
region from a revenue
perspective,'' said
Alexandre Hohagen,
Google's managing
director for Latin
America ``We hope to
double the size of the
company in the region,
even with the economic
slowdown.''
When results are
finalized for 2008,
Google expects revenue
growth from Latin
America to reach around
120 percent down from
165 percent in 2007,
Hohagen said. Even so,
he added, revenue
expansion in the fourth
quarter of 2008 was
still the highest in the
world for Google
divisions.
`PASSION POINTS'
Many Internet portal
companies already have a
presence in Latin
America and are
positioning themselves
to capture a share of
this rapidly expanding
market by focusing on
sites covering topics
and features that appeal
to local audiences, like
soccer, music and social
networking. They make
money by placing display
ads on these sites,
using sponsored search
links, specific local
listings for products
that are offered for
sale and other options.
''We speak to the
passion points of each
audience in Latin
America,'' said Miguel
Ferrer, director of
programming for AOL
Latino, which operates
portals in Argentina,
Colombia, Chile, Mexico,
Puerto Rico and
Venezuela and is based
in New York.
AOL's Latin American
portals focus on the
specific interests of
each market, he added.
''While there are shared
platforms and tools,
they are not
cookie-cutter versions
of AOL'' in the United
States.
For example, in 2008 AOL
launched Fanaticos.com,
a Spanish-language
blogging site that
targets the large
audience of Latin
American sports fans.
AOL also tailors news,
celebrity and gossip
features to each local
market and appeals to
women though lifestyle
sites dedicated to
health, beauty tips and
cooking.
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