Latin American Internet Usage
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.
The recent expansion of Internet users in Latin Amercia 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.
That 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.
WHO IS THE MOST WIRED?
Among Latin American countries and commonwealths surveyed, Argentina currently has the highest household penetration rate for Internet subscriptions, but Chile and Puerto Rico have the greatest growth potential.
| Country | Penetration Rate (%) 2007 | Projected Penetration (%) 2013 |
| Chile |
27 |
55 |
| Puerto Rico |
26 |
55 |
| Uruguay |
19 |
54 |
| Argentina |
28 |
45 |
| Brazil |
26 |
43 |
| Costa Rica |
19 |
42 |
| Venezuela |
12 |
41 |
| Mexico |
14 |
41 |
| Colombia |
9 |
38 |
| Peru |
7 |
18 |
| Ecuador |
8 |
14 |
SOURCE: Pyramid Research, Fixed Demand Forecasts, 3Q 2008
Pyramid Research surveyed 3,620 Internet users in 10 Latin American countries and Puerto Rico, focusing on people who frequently accessed the Internet for a combination of personal and business purposes.
It found that 77 percent of those surveyed used the Internet to communicate with others via e-mail, instant messaging or social networking, while 63 percent visited websites for news, information and topics related to work and school. Other usage categories were downloading music and videos (28 percent), Web services such as bill paying, electroinc banking, e-government and auctions (10 percent), and online purchases and game playing (9 percent each).
The 18-to-29-age bracket demonstrated the highest penetration of Internet activities for all categories, but those using online gaming were mostly 17 and younger. Those 18 years old and older were the biggest users of online shopping and bill paying.
The report, commissioned by Google, found that Internet patterns differed by country. The Latin American countries surveyed included Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, Peru, Uruguay and Venezuela. Among the highlights:
- Brazilians are the biggest fans of social networking sites (74 percent of users) and instant messaging (76 percent) but rank the lowest in terms of e-mail (71 percent). Many Brazilians post and receive messages on social networking sites, like Orkut.
- In Uruguay, 98 percent of Internet subscribers use e-mail, but only 4 percent regularly visit social networking sites.
- For Mexicans, photo and video sharing sites are the most important online features (35 percent use them), but only 4 percent of Argentines feel the same way.
- Brazilian Internet subscribers lead other markets in online banking, while Venezuelans are the biggest users of bill paying and Mexicans emply e-government sites more than their Latin neighbors.
SOURCE: The Miami Herald - Business Monday on 1/12/09
