2014 Brazil Digital Future in Focus

2014 Brazil Digital Future in Focus The 2013 Digital Year in Review & What It Means for the Year Ahead Alex Banks, VP Latin America & Director Brazil May, 2014 www.facebook.com/comscoreinc @comscorelatam prensa@comscore.com For info about the proprietary technology used in comscore products, refer to http://comscore.com/about_comscore/patents

Table of Contents Regional Overview 3 Brazil Online Landscape 10 Digital Audience Behavior. 15 Social Media.. 23 Retail 31 Online Video.. 38 Multiple Device Usage 43 Online Advertising 46 Futebol Fever.. 50 comscore, Inc. Proprietary. 2

Regional Overview comscore, Inc. Proprietary. 3

Distribution of Worldwide Internet Audience Asia Pacific and Europe Leading the Online Universe 26% Europe 14% North America 9% Middle East - Africa 41% Asia Pacific 10% Latin America 40% of the Latin American Audience is located in Brazil Source: comscore Media Metrix, February 2014, Home and Work, PC Only, 15+ comscore, Inc. Proprietary. 4

Internet Audience Ranking by Country (15+, PC/laptop) As of February 2014, Brazil Ranked 5 th Largest Audience Total Unique Visitors (MM) China United States India Japan Brazil Russian Federation Germany France United Kingdom Italy 80.1 73.0 68.1 66.8 52.6 42.4 39.4 30.5 194.7 SAME MONTH LAST YEAR Brazil s Internet Audience was 61.4 MM (+11% YtY) IN TOTAL MINUTES Brazil ranked third after U.S. & China with 126,857 MM 354.6 Source: comscore Media Metrix, February 2014, Home and Work, PC Only, 15+ comscore, Inc. Proprietary. 5

Online Time Spent Across Regions North America and Europe Spent More Time Online Average Hours per Visitor a Month 32.6 27.4 Brazil 29.7 21.9 18.6 Worldwide 22.7 14.8 North America Europe Latin America Asia Pacific Middle East - Africa Source: comscore Media Metrix, February 2014, Home and Work, PC Only, 15+ comscore, Inc. Proprietary. 6

Engagement Across Latin American Audiences Consumers in Brazil spent 29.7 hrs. per month online (PC only) Average Hours per Visitor a Month Brazil 29.7 Latin America 21.9 Argentina 20.4 Peru 18.8 Venezuela Colombia Chile Mexico 16.9 16.0 15.9 15.2 Puerto Rico 12.1 Source: comscore Media Metrix, February 2014, Home and Work, PC Only, 15+ comscore, Inc. Proprietary. 7

Time Spent Online by Age Group Brazilians Aged <35 Spent More Time Than The Avg. In Other Regions % of Total Minutes Worldwide 26.0 26.3 20.7 13.9 13.2 Brazil 29.3 29.2 20.4 13.0 8.1 Europe 20.3 23.4 21.2 17.9 17.3 North America 20.8 17.6 17.5 18.2 26.0 Persons: 15-24 Persons: 25-34 Persons: 35-44 Persons: 45-54 Persons: 55+ Source: comscore Media Metrix, February 2014, Home and Work, PC Only, 15+ comscore, Inc. Proprietary. 8

Online Audience Across Latin America 40% of Latin America s 169 Million Internet Users are in Brazil Total Unique Visitors (000) 68,138 24,840 17,981 12,604 9,226 6,099 5,569 1,466 1,353 Brasil Mexico Argentina Colombia Venezuela Chile Peru Puerto Rico Uruguay Source: comscore Media Metrix, February 2014, Home and Work, PC Only, 15+ comscore, Inc. Proprietary. 9

Brazil Online Landscape comscore, Inc. Proprietary. 10

Brazil Internet Audience The Unique Visitors grew +11% vs Same Month Last Year 71,945 73,071 79,703 80,014 Growth Over 1 Year Total Unique Visitors (000) +11% Source: comscore Media Metrix, February 2013 - February 2014, Home and Work, PC Only, Brazil 6+ comscore, Inc. Proprietary. 11

Brazil Online Audience Profile 65% of The Total Internet Audience in Brazil has <35 years old % Composition of Unique Visitors 25.0% 24.8% Women 49% Men 51% 14.8% 17.4% 11.1% 6.9% Persons: 6-14 15-24 25-34 35-44 45-54 55+ Source: comscore Media Metrix, February 2014, Home and Work, PC Only, Brazil 6+ comscore, Inc. Proprietary. 12

Regional Internet Population Distribution & Average Usage The region with highest growth rates is Northeast % Of Online Population BR Region: North 26.2 Hours Online 9% YtY Growth 5.2% 16.5% BR Region: Northeast 26.2 Hours Online 17% YtY Growth BR Region: Center-west 26.0 Hours Online 11% YtY Growth BR Region: South 27.9 Hours Online 10% YtY Growth 8.2% 17.0% 53.0% BR Region: Southeast 26.2 Hours Online 10% YtY Growth Source: comscore Media Metrix, February 2014, Home and Work, PC Only, Brazil 6+ comscore, Inc. Proprietary. 13

Total Unique Visitors (000) Internet Population Distribution by State YOY Growth São Paulo Rio de Janeiro 9,656 8,976 22,307 24,676 +11% +8% Minas Gerais 6,667 6,016 +11% Paraná Rio Grande do Sul Santa Catarina 4,808 4,647 5,437 4,594 3,352 3,089 Feb-14 Feb-13 +3% +18% +8% Bahia Distrito Federal 3,519 3,072 2,895 2,722 +15% +6% Other 16,522 19,003 +15% Source: comscore Media Metrix, February 2013 vs February 2014, Home and Work, PC Only, Brazil 6+ comscore, Inc. Proprietary. 14

Digital Audience Behavior comscore, Inc. Proprietary. 15

Social Networking Captures Most PC Screen Time in Brazil Total Time Spent on Social Networking Grew 6% Total Minutes (MM) 60,000 50,000 40,000 30,000 20,000 10,000 0 Social Networking Sports Portals Services Entertainment News/Information Source: comscore Media Metrix, February 2013 - February 2014, Home and Work, PC Only, Brazil 6+ comscore, Inc. Proprietary. 16

Total Unique Visitors (000) Portals and Services are Two of the Fastest Growing Categories YOY Growth Services 69,079 77,139 +12% Portals 66,483 76,157 +15% Social Media 72,519 65,955 +10% Entertainment 62,794 70,323 Feb-14 Feb-13 +12% Search/Navigation 68,289 68,655-1% Sports 31,405 32,831-4% News/Information 56,737 52,733 +8% Source: comscore Media Metrix, February 2013 vs February 2014, Home and Work, PC Only, Brazil 6+ comscore, Inc. Proprietary. 17

Reach by Category Portals News/Information Technology Education Games Government Banking Sports Travel Family & Youth Classifieds Health Beauty/Fashion/Style Automotive Career Services and Development Real Estate 12.0 17.9 35.2 43.4 21.2 40.6 32.7 39.3 38.5 34.3 36.3 32.8 29.8 31.6 26.7 31.1 29 30.8 24.8 27.1 29.9 22.6 26.6 51.2 51.1 51.5 57.2 62.3 70.9 95.2 92.6 77.9 % Reach in Brazil % Reach Worldwide Source: comscore Media Metrix, February 2014, Home and Work, PC Only, Brazil 15+ comscore, Inc. Proprietary. 18

Total Unique Visitors (000) The Evolution of Some Key Content Categories in Brazil 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Entertainment Newspapers Retail Travel Source: comscore Media Metrix, February 2013 - February 2014, Home and Work, PC Only, Brazil 6+ comscore, Inc. Proprietary. 19

UV s in Politics Category Increased During the Protests The % of total minutes increased 42% May vs June 2013 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Total Unique Visitors (000) Source: comscore Media Metrix, February 2013 - February 2014, Home and Work, PC Only, Brazil 6+ comscore, Inc. Proprietary. 20

Top Properties in Brazil 74,537 34,946 66,460 30,374 54,099 14,794 52,953 16,072 49,329 12,908 47,857 8,828 46,211 9,081 40,904 8,601 29,188 4,153 26,839 2,906 Google Sites Facebook UOL Microsoft Sites Globo Yahoo Sites R7 Portal Terra - Telefonica Total Unique Visitors (000) Average Daily Visitors (000) IG Portal Grupo NZN Source: comscore Media Metrix, February 2014, Home and Work, PC Only, Brazil 6+ comscore, Inc. Proprietary. 21

Biggest Growing Properties in Brazil 11,498 15,171 5,620 14,124 8,219 12,415 7,384 11,016 663 8,273 6,114 8,028 5,416 7,482 5,202 7,293 4,795 6,706 2,660 5,456 139 5,108 2,782 4,538 3,223 4,411 Total Unique Visitors (000) Feb-2013 Feb-2014 Source: comscore Media Metrix, February 2013 vs 2014, Home and Work, PC Only, Brazil 6+ comscore, Inc. Proprietary. 22

Social Media comscore, Inc. Proprietary. 23

Brazil Ranks 2 nd Worldwide in Reach of the Blogs Category % Reach Japan Brazil Taiwan Indonesia Uruguay Spain Thailand Poland Portugal Turkey 72.0 69.5 66.6 64.9 64.8 63.1 62.9 78.4 77.3 77.2 Source: comscore Media Metrix, February 2014, Home and Work, PC Only, Brazil 6+ comscore, Inc. Proprietary. 24

Brazilians Highly Engaged With Social Content Nearly 13 Hours in February on Social Networking Sites 900 800 700 600 500 400 300 200 100 0 Average Minutes per Visitor on Social Networking Sites 775 346 Brazil Worldwide Source: comscore Media Metrix, February 2013 - February 2014, Home and Work, PC Only, Brazil 6+ comscore, Inc. Proprietary. 25

Brazilians Spend More Time on Facebook than the Mexican and Argentine Online Audiences Spend Online Combined Total Minutes (MM) Facebook Total Internet 46,615 22,683 22,037 44,720 Brazil Mexico Argentina MX + AR Source: comscore Media Metrix, February 2014, Home and Work, PC Only, Brazil 15+ comscore, Inc. Proprietary. 26

Total Unique Visitors (000) Ranking of Top Social Networks LinkedIn takes second place with an 11% growth Median Age FACEBOOK.COM 65,957 30.2 Linkedin 11,841 32.9 TWITTER.COM TUMBLR.COM ASK.FM Orkut BADOO.COM Yahoo Profile 11,375 7,903 5,088 4,857 3,159 2,752 27.3 24.8 21.1 30.4 34.7 38.2 Source: comscore Media Metrix, February 2014, Home and Work, PC Only, Brazil 6+ comscore, Inc. Proprietary. 27

Share of Time Spent in Social Networks in Brazil Linkedin 0.2% TWITTER.COM 0.7% FACEBOOK.COM 97.8% Other 2.2% TUMBLR.COM 0.6% ASK.FM 0.5% Orkut 0.3% Source: comscore Media Metrix, February 2014, Home and Work, PC Only, Brazil 6+ comscore, Inc. Proprietary. 28

Social Audiences Are Growing Fast Total interactions across Facebook increasing by 26% Total Number of Fans Across Brazil s Top Pages Brasil Pages +148% 650M 262M Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Total Monthly Interactions Across Top Facebook Pages in Brazil Brasil Pages +26% 82M 65M Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Source: Shareablee Social Loyalty Platform 2014. Platforms: Facebook, Twitter, Instagram comscore, Inc. Proprietary. 29

The use of Instagram is Growing Fast Brands have seen an almost 900% increase since Jan-2013 Engaged Social Moments across Top Instagram Properties January 2013 to April 2014 By the Numbers 21M Total Pieces of Content Posted by Brazil s Top Instagram Properties 18K Actions per Media (average) 1,167 Total Monthly Actions on Instagram across Brazil s Top Properties Instagram in Brasil +893% 4M 375K Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Source: Shareablee Social Loyalty Platform 2014. Platforms: Facebook, Twitter, Instagram comscore, Inc. Proprietary.

Retail comscore, Inc. Proprietary. 31

2013 Saw a Rise in Retail Audience in Brazil 62,000 60,000 58,000 56,000 54,000 52,000 50,000 48,000 46,000 Total Unique Visitors (000) Retail Category + 10% Source: comscore Media Metrix, February 2013 - February 2014, Home and Work, PC Only, Brazil 6+ comscore, Inc. Proprietary. 32

% Reach and Engagement on Retail Websites Highest Reach but still has space to grow in Engagement % Reach Average Minutes per Visitor 77.7 11.0 75.5 7.4 7.3 67.5 Worldwide Latin America Brazil Worldwide Latin America Brazil Source: comscore Media Metrix, - February 2014, Home and Work, PC Only, 15+ comscore, Inc. Proprietary. 33

Demographic Profile of Retail Category Almost 60% of Brazilian Retail Audience is Younger Than 35 Years Old % Composition Unique Visitors (000) Worldwide 26.0 26.3 20.7 13.9 13.2 Latin America 32.4 27.9 19.6 12.3 7.8 Brazil 29.3 29.2 20.4 13.0 8.1 Persons: 15-24 Persons: 25-34 Persons: 35-44 Persons: 45-54 Persons: 55+ Source: comscore Media Metrix, February 2014, Home and Work, PC Only, 15+ comscore, Inc. Proprietary. 34

What Are the Online Buyers Looking For? Consumer Electronics Department Stores SportsOutdoor Apparel Books Computer Hardware FragrancesCosmetics Home Furnishings Computer Software Mall Health Care Movies Toys JewelryLuxury GoodsAccessories Tickets - Food Consumer Goods FlowersGiftsGreetings Music % Composition Unique Visitors 9.4 9.3 9.3 8.9 7.2 5.5 4.8 3.7 1.9 26.5 23.9 19.1 17.4 16.5 14.5 43.7 41.8 55.5 80.6 Source: comscore Segment Metrix, February 2014, Home and Work, PC Only, Brazil 6+ comscore, Inc. Proprietary. 35

Top Retail Properties Ranked by Unique Visitors Mercado Libre is Leading the Retail Category in Brazil MercadoLibre B2W Digital Buscape Company Nova Pontocom Wal-Mart Netshoes Group Alibaba.com Corporation Magazineluiza.com.br Maquina De Vendas Livrariasaraiva.com.br UOL Shopping Dafiti Sites Centauro.com.br Apple.com Worldwide Sites Amazon Sites 11,046 11,017 9,389 7,602 7,588 6,873 6,337 5,536 5,456 5,300 4,595 14,905 13,959 19,602 23,861 Total Unique Visitors (000) Source: comscore Media Metrix, February 2014, Home and Work, PC Only, 6+ comscore, Inc. Proprietary. 36

Buscape Continues to Lead the Comparison Shopping Sites UOL Shopping continues in second place Total Unique Visitors (000) 14,905 6,337 2,854 2,493 Buscape Company UOL Shopping ZOOM.COM.BR Google Shopping Source: comscore Media Metrix, February 2014, Home and Work, PC Only, 6+ comscore, Inc. Proprietary. 37

Online Video comscore, Inc. Proprietary. 38

October was the Month with Most Videos Viewed We saw other peaks in March and June 160 177 161 156 Videos Viewed per Viewer Source: comscore Video Metrix, February 2013 - February 2014, Home and Work, PC Only, Brazil 6+ comscore, Inc. Proprietary. 39

Online Video in Brazil YouTube is still the leader Unique Viewers (000) Videos per Viewer Google Sites 62,384 85.1 Facebook 39,348 23.2 Globo Maker Studios Inc. VEVO Warner Music UOL Vimeo Yahoo Sites 19,561 17,498 16,918 14,728 11,749 10,753 7,264 30.2 11.6 19.5 7.3 7.9 3.8 3.2 Source: comscore Video Metrix, February 2014, Home and Work, PC Only, Brazil 6+ comscore, Inc. Proprietary. 40

Growth in Some of Brazil s Top Online Video Properties (UVs) Turner Digital and Facebook gain > 200% 262% Unique Viewers 228% 121% 94% 52% 39% 25% 10% -2% Turner Digital Facebook Vimeo Warner Music (w/ history) Globo VEVO Yahoo Sites UOL Google Sites Source: comscore Video Metrix, February 2014, Home and Work, PC Only, Brazil 6+ comscore, Inc. Proprietary. 41

Share of Videos from other players are increasing while YouTube is sharing less than in 2013 VEVO 3.1 2.4 % Share of Videos Globo 5.5 4.0 Facebook 2.8 8.5 YOUTUBE.COM 48.6 52.4 Feb-2014 Feb-2013 Source: comscore Video Metrix, February 2013 February 2014, Home and Work, PC Only, Brazil 6+ comscore, Inc. Proprietary. 42

Multiple Device Usage comscore, Inc. Proprietary. 43

Device Share of Page Views (excluding Apps) Android has a stronger presence in Brazil compared to the U.S. Platform Share of Page Hits PC Mobile Tablet Other Mobile OS Share of Page Hits ios Android Windows 0.5 0.1 6.7 2.5 9.3 14.5 1.7 53.6 5.0 78.3 88.1 71.7 41.0 14.5 U.S. Brazil U.S. Brazil Source: comscore Device Essentials, February 2014, Home and Work, PC Only, 15+ comscore, Inc. Proprietary. 44

Platform Share of Page Hits Mobile increased share 132% in Brazil U.S. PC Mobile Tablet Other Brazil PC Mobile Tablet Other 0.7 0.5 4.9 6.7 10.1 14.5 0.1 0.1 2.0 2.5 4.0 9.3 84.4 78.3 93.9 88.1 2013 2014 2013 2014 Source: comscore Device Essentials, February 2013 vs February 2014, Home and Work, PC Only, 15+ comscore, Inc. Proprietary. 45

Online Advertising comscore, Inc. Proprietary. 46

Display Ads Served by Publisher Facebook continues to lead in Brazil Facebook 583,898,235 UOL Globo Microsoft Sites Terra - Telefonica Google Sites Yahoo Sites R7 Portal IG Portal Grupo Abril 120,055,440 118,612,432 94,679,610 90,363,309 81,609,981 36,668,832 29,554,583 23,336,187 7,839,708 Display Ad Impressions from Jan-Dec 2013 Source: comscore Ad Metrix, Brazil 6+, 2013 comscore, Inc. Proprietary. 47

Display Ads in Brazil by Advertiser Netshoes was the Biggest Online Advertiser in 2013 Netshoes Dafiti 22,486,027 22,034,729 Netflix, Inc. 18,436,597 MRV OLX Inc. Microsoft Corp Itau Unibanco Globo Unilever Net Serviços 13,570,865 12,748,206 12,175,121 11,151,983 10,553,321 10,276,263 10,064,076 Display Ad Impressions from Jan-Dec 2013 Source: comscore Ad Metrix, Brazil 6+, 2013 comscore, Inc. Proprietary. 48

Facebook Share of Display Ads Brazil 37.5 México France UK 33 32.3 32 Canadá Spain United States Germany 30.1 29.2 27.8 26.8 Source: comscore Ad Metrix, February 2014, Home and Work, PC Only, Brazil 6+ comscore, Inc. Proprietary. 49

Futebol Fever comscore, Inc. Proprietary. 50

Latin American s World Cup Excitement Strongest penetration relative to the rest of the world % Reach Fifa.com 3.0 2.5 2.0 1.5 FIFA Confederations Cup 2013 FIFA World Cup 2014 1.0 0.5 0.0 Latin America Middle East - Africa North America Europe Asia Pacific Source: comscore Media Metrix, February 2013 March 2014, Home and Work, PC Only, 15+ comscore, Inc. Proprietary. 51

Uruguay and Brazil Showed the Strongest Relative Visitation to Fifa.com during February 2014 % Reach Fifa.com Uruguay Brazil Colombia Canada United Kingdom Chile Spain Switzerland Peru Argentina Venezuela New Zealand Belgium Norway Mexico 0.4 0.4 0.3 0.3 0.3 0.3 0.3 0.2 0.2 0.2 0.5 0.6 0.6 1.0 1.6 Source: comscore Media Metrix, February 2014, Home and Work, PC Only, 15+ comscore, Inc. Proprietary. 52

Travel Category has been Lifted by the World Cup in Brazil 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 - Total Unique Visitors (000) Source: comscore Media Metrix, February 2013 March 2014, Home and Work, PC Only, 6+ comscore, Inc. Proprietary. 53

Sponsors of the World Cup in Brazil have seen an upward trend in activity Social Moments on Facebook World Cup Sponsors +27% 7M 5.5M Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Total Actions 5,511,942 Average Unique Engaged Audience 124,456 Posts (Total) 1,425 Jan 2013 Apr 2014 7,019,147 (+27%) 143,991 (+16%) 1,570 (+10%) Source: Shareablee Social Loyalty Platform 2014. Platforms: Facebook, Twitter, Instagram. comscore, Inc. Proprietary. 54

The WC Sponsors, on Average, Doubled their Amount of Fans in Facebook since February 2013 8,000,000 Average # of Facebook Fans 7,000,000 + 52% 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Source: Shareablee Social Loyalty Platform 2014. Platforms: Facebook, Twitter, Instagram. comscore, Inc. Proprietary. 55

Nike & McDonald s Facebook Posts Led to Greater Engagement Source: Shareablee Social Loyalty Platform 2014. Platforms: Facebook, Twitter, Instagram. comscore, Inc. Proprietary. 56

The Average Engagement per Tweet for Sponsors 0.16% Avg. Engagement/Tweet + 200% 0.14% 0.12% 0.10% 0.08% 0.06% 0.04% 0.02% 0.00% Source: Shareablee Social Loyalty Platform 2014. Platforms: Facebook, Twitter, Instagram. comscore, Inc. Proprietary. 57

Followers of the WC Sponsor Brands Spread their Branded Content Almost 3X More than in February 2013 6,000 5,000 + 290% 4,000 3,000 2,000 1,000 0 Source: Shareablee Social Loyalty Platform 2014. Platforms: Facebook, Twitter, Instagram. comscore, Inc. Proprietary. 58

Key Insights Brazil is the 5th largest audience with 68.1 MM total unique visitors as of February 2014, with an 11% growth compared to same month last year. In terms of total minutes, is ranked 3rd with 126,857 MM. Brazil is one of the world s leaders in online engagement, with users spending 29.7 hours per month online on their PCs and/or Laptops, 7 hours more than the global average. 40% of Latin America's 169 Million Internet users are in Brazil. Facebook is the top social network in Brazil followed by LinkedIn, and Brazilians spent more time on FB than Mexico and Argentina spent online. Android is the dominant mobile OS with 71.7% of share of page hits. The digital ad market is healthy and growing in Brazil, with more than 1.56 trillion display ad impressions served in 2013. comscore, Inc. Proprietary. 59

Questions? www.facebook.com/comscoreinc @comscorelatam For info about the proprietary technology used in comscore products, refer to http://comscore.com/about_comscore/patents

Thank You Media Requests: prensa@comscore.com www.facebook.com/comscoreinc @comscorelatam For info about the proprietary technology used in comscore products, refer to http://comscore.com/about_comscore/patents