This article in WSJ from last week calls Brazil a promising land for social media. One of the main lines of argumentation explains that “Brazil’s expanding middle class is increasingly going online, and social media are particularly popular because of Brazil’s hyper-social culture… Brazilian users especially like to chat, almost constantly, about TV shows, sports and news… Brazilians have a passion to share information”. Next to the cultural aspect, here are some more interesting facts from the article about Brazil (data from September 2012):
– Market size: Facebook has 65 million users in Brazil being the 2nd largest market after the U.S., also biggest market outside the U.S. for YouTube; one of Twitter’s top-five active user groups.
– Market growth: Average time by user spent on Facebook grew 208% to 535 minutes in Brazil (globally dropped 2% to 361 minutes); average time spent on YouTube per visitor grew 5% to 140 minutes (globally dropped 3% to 161 minutes); Brazilian users spent 41% more time on Twitter in September 2012 than in September 2011.
– Outlook advertising: Estimates predict Brazil will add $ 5.6 billion of the $76 billion of new advertising spending over the next three years – a bigger share than India, Russia and Indonesia.
– Challenges: Only a small base of digital advertising market (10,6% on digital ads, 19,8% globally); economic growth down to 1% in 2012 (2,7% in 2011 and 7.5% in 2010); high taxation on payrolls and prohibitive amount of bureaucracy.
My questions to the class:
– Social media & culture: Is the ‘culture’ of a society the dominating factor of the adoption and intensity of the usage of social media and what other factors play a(n) (more) important role?
– Social media & markets: Imagine you develop a new social media service/product: Would you target Brazil as an important/key market? Compare with other possible strategic markets.