SlideShare a Scribd company logo
1 of 46
Download to read offline
BRIC Video Games Markets
        Market Data & Demographics

                   Part 1- Brazil
Why Brazil could be your number 1 region within 5 years.
Brazil
    • Capital: Brasília
    • Currency: Brazilian real
    • Language: Portuguese
    • Population: 196,655,014 (2011)
    • GDP: $2.477 trillion USD (2011)

Brazil’s market is strengthening with the official distribution of consoles like
PlayStation (Sony) and Xbox (Microsoft). Estimates also identify Brazil as a market of
about 40 million players across many different platforms. Brazil has the largest
distribution of mobile phones in the world with over 180 million devices that provide a
great opportunity for mobile gaming. Brazil's market for PCs is the fifth largest in the
world and projected to become one of the top three.

Brazil will host both the 2014 FIFA World Cup and the 2016 Olympic Games
BRIC Social Comparison
Brazil Economy
   •   E-commerce in Latin America is forecast to be worth $73bn by 2015
   •   In Brazil, 59% of internet shoppers are most likely to buy consumer electronics
       and computer equipment.
   •   In Brazil, 56% of internet shoppers consider ease of the online checkout process
       as a deciding factor on whether to buy.


                                                                         Brazil accounts for 61%
                                                                            of all ecommerce
                                                                           spending in LATAM
Brazil Internet Usage
    • Brazil dominates LATAM for internet
      usage.
    • 36% of all internet users for the region
      are located in Brazil.
    • 61% of all Ecommerce for the region
      takes place in Brazil.
    • Total number of internet users is
      estimated at 40M+ more than UK,
      South Korea, Canada and Italy.
Global Internet Usage
Brazil Games Landscape
   •   Publishers with a local office
        •   Disney Interactive Studios
        •   Electronic Arts
        •   Gamemaxx
        •   Microsoft
        •   Sony Computer Entertainment
        •   Ubisoft


   • Digital Retail Landscape
   The country is starting to embrace digital distribution with Steam firmly established in
   the region. However, like its High Street counterparts, the digital retailer’s sales are
   lower than expected due to high levels of piracy.
   There are even a number of pirate games stores that only sell illicit copies of new
   releases, winning over customers with a more flexible offering than legitimate outlets.
   Gamers are even allowed to swap titles in store shortly after purchase if they did not
   enjoy them.
   Part of the reason for piracy is that the tax rates are exceedingly high. Titles that are
   only six months old are often sold for in excess of $100.
Local Governing Bodies and Organisations
   •   Abragames - Founded in 2004 by a group of development
       companies, Abragames, Brazilian Association of Developers
       of Digital Games, emerged as a nonprofit entity and with the
       aim of strengthening the domestic industry of game
       development.
        •   http://www.abragames.org
   •   Brasil Games Show - The Brasil Game Show is the first
       Brazilian Game Fair held for the fifth consecutive time. The
       event is an achievement of a 100% national company
       focused on the growing market for electronic games.
        •   http://www.brasilgameshow.com.br/
   •   Association Commercial, Industrial and Cultural Games -
       ACIGAMES is an association created in order to represent
       and regulate the industry and trade of electronic games and
       culturally stimulating the area of ​games in Brazil.
        •   http://www.acigames.com.br/
Video Game Taxes in Brazil
   • Retail Physical Product
       • 20% import tax
       • 30% IPI (industrialised product tax)
       • 9.25% Pis/Cofins (social contribtions)
       • 18 to 25% (province tax)


   • Digital Downloads
       • No IPI
       • No ICMs
       • 20% import tax (possibly avoided by local entity?)
       • 9.25% Pis/Confins
       • 5% ISS (city services tax)
Taxes – Typical Examples
   • Physical Goods
       • Original Cost $50 + Taxes $26 = Total $76
   • Digital Download
       • Original Cost $50 + Taxes $18.25 = Total $68.25
   • Average retail mark-up 30%


   • Final Consumer Costs
       • AAA console title $100-$150
       • AAA PC title $70-$90
Piracy in Brazil
    • It is estimated that only 15% of digital copies of games in Brazil
      are official copies.
    • 81% do not pay for digital copies of games.
Brazilian Gamers
   • 42% of Brazilians list video games as one of their recreational
     habits. The top platform being the mobile phone.
Brazil Key Demographics
   • Class AB – Income US$ 2800+
       • 20 M Brazilians
       • 10.6% of Population
       • Computer ownership or access 94%
       • Internet penetration 81%


   • Class C – Income US$ 660 to US$ 2800
       • 50.5% of population
       • Computer ownership or access 33%
       • Internet Penetration 66%
Gamer Demographics
   • Casual Games the most popular in Brazil
   • Followed closely by Social and Mobile
   • Whilst MMO games and PC Download games are popular to play
     due to prices and piracy publishers not benefiting to full
     potential.
   • Console games have poor penetration due to import costs.
Games Monetisation
   • Brazil No2# for Social Gaming by monetisation model
   • Free to play also one of most popular models
   • Poor uptake of subscriptions and paid downloads – possibly due
     to piracy and prohibitive costs.
Brazil Payment Methods
   •   Credit Cards dominant but closely followed by local bank transfer option
       Boleto.
   •   Main future opportunities around mobile payments and wallets
Marketing In Brazil
 • Brazil
 • Marketing Mix in Brazil
Brazil Regional Diversity




                            45.2% of mobile access
                            lines are located in the
                               south east of the
                                    country.
Online Video Usage in Brazil
Brazil loves twitter! – 20%+ market reach


                                            Brazil has second
                                            highest Twitter
                                            penetration in the
                                            world at 20.5% behind
                                            Indonesia at 20.8%.
                                            [Source: comScore,
                                            August 2010]
Internet Consumerism
   • Internet usage and ecommerce expanding rapidly.
   • Most middle class consumers regularly using the internet.
   • Consumers readily adapting to ecommerce.
Top Retail Sites in Brazil
Key Online Categories in Brazil
Coupon Site Popularity
   • In June 2011, 14.2% of regional visitors accessed the coupon
     category.
Brazil Marketing Mix
Brazil: Main Media & Portal Owners


                                     Number of internet
                                     users in Brazil is
                                     increasing by 20%.
                                     [Source: comScore,
                                     February 2011]
Brazil Social Networking
Facebook Brazil
   •   Facebook has now overtaken Orkut as the dominent social platform in Brazil.
   •   Facebook’s growth appears to be based on the games available to play on the
       social network. According to a survey of 250 Brazilian Internet users 18 to 35 years
       old undertaken by the Universidade Católica de Pelotas (UCPel), Brazil, nearly nine
       out of 10 users (86%) indicated that games are their favorite thing to do on
       Facebook, and a strong motivation to keep coming back.
Brazil Video Games Market and Marketing - Philip Driver
Brazil Search Marketing
   • Paid search is expected to grow by 20.6% in 2011 and by a further
     15.6% over the following five years.
   • 4.79 percent of paid search clicks in the region come from tablet
     users. The cost per click in Brazil is also lower for tablet ads, at
     $0.12 compared to $0.16 for desktop.
   • 35% of mobile users in Brazil have internet access on their
     phones.
Internet Advertising

    • Investment in online advertising in Latin America is expected to
      increase to $4.9bn by 2015
    • Around 5% of advertising spend is currently spent online in Latin
      America.
Desktop Browsers
   • In South America Internet Explorer is the most popular desktop
     browser with 39.58% market share.
Mobile Browsers
   • Top nine mobile browsers in South America, October 2010 –
     October 2011.
Brazil Mobile Commerce
   • A Smartphone revolution taking place in Brazil -- a recent Nielsen
     survey showed a 165 percent increase in smartphone sales year-
     on-year.
   • There are 19 million smartphones in Brazil, almost 9% of the total
     mobile phone market.
   • Brazil currently puts a hefty fee on imported goods. Despite these
     (which reportedly can triple prices) iPhone already accounts for
     an estimated 10 percent of local smartphone sales. (In Brazil, the
     iPad 2 retails at $887).
   • However, Foxconn plans to build its next Apple plant in Sao Paulo.
     This will effectively bypass import laws and possibly give market
     dominance in the region.
Brazil Mobile Commerce
   • 33.9% of Brazilian mobile owners access social networks through
     their phones.
   • 83% of Brazilian mobile owners who use mobile internet also
     access social networks through their phones.
   • 33% of Brazilian mobile internet users access social networks
     through mobile phones as much as or more than from their
     computer.
Brazil Mobile Commerce
   • 14.5% of mobile owners in Brazil have made purchases via mobile
     websites or apps.
Brazil Mobile Commerce
   • In Brazil, making purchases via mobile is more prevalent among
     the higher classes.
Brazil Mobile Commerce
   • 62.6% of iPhone owners in Brazil have made purchases via mobile
     websites or apps.
Brazil Mobile Commerce
   • 34.6% of smartphone owners in Brazil are aged 25-34.
Brazil Mobile Commerce
   • In Brazil, games are the most popular mobile app category.
Brazil Mobile Commerce
   • In Brazil, social network apps are considered the most important.
Brazil Mobile Commerce Marketing
   • Ad agency mobile marketing plans in Brazil. [Source: Nielsen,
     June 2011]
   • 83% of agencies in Brazil believe that mobile marketing is a
     channel that can be better exploited.
   • 62% of the agencies surveyed in Brazil launched mobile
     marketing campaigns in 2010, a figure that is expected to
     increase to 87% in 2011.
   • Most mobile marketing initiatives in Brazil use multimedia with
     games and music and video downloads, and for 2011, 50% of
     campaigns will reach iPhones users alone.
Blogs & Brands
   • Blogs and user reviews are major
     influencers of user behaviour in
     Brazil.
Brazil Video Games Markets Conclusions
   •   Vast potential for ecommerce, social and free to play.
   •   Gamer culture.
   •   High taxes and piracy barrier to entry.
   •   No established major retailers.
   •   Internet penetration increasing rapidly.
   •   Most pronounced increase in mobile internet and smart phone use.
   •   Internet use highly social with most users having either Facebook,
       Orkut or Google+ accounts.
   •   Potential to be top 3 locale within 5 years.
   •   Key marketing areas
        • Social
        • Mobile & Tablet
        • Portals
Game Over
About the Author: Philip Driver is a digital distribution, online retail and marketing expert specialising in the field of
video games.

A video games industry veteran of nearly ten years he lives in the UK and finds that having children really gets in the
way of playing Skyrim.

You can follow him on Twitter http://twitter.com/PobiWan
Linkedin http://uk.linkedin.com/pub/philip-driver/14/538/b16
References
•   The Gamer is always right – White Paper
     – www.superdataresearch.com
•   Monetizing Emerging Games’ Markets
     –   Global Collect/Newzoo
•   The future of Brazil Games Market
     –   Gameworld/Tambor
•   Brazil Digital Market Landscape Report
     –   Econsultancy
•   Google
•   Wikipedia
•   Facebook

More Related Content

Featured

PEPSICO Presentation to CAGNY Conference Feb 2024
PEPSICO Presentation to CAGNY Conference Feb 2024PEPSICO Presentation to CAGNY Conference Feb 2024
PEPSICO Presentation to CAGNY Conference Feb 2024Neil Kimberley
 
Content Methodology: A Best Practices Report (Webinar)
Content Methodology: A Best Practices Report (Webinar)Content Methodology: A Best Practices Report (Webinar)
Content Methodology: A Best Practices Report (Webinar)contently
 
How to Prepare For a Successful Job Search for 2024
How to Prepare For a Successful Job Search for 2024How to Prepare For a Successful Job Search for 2024
How to Prepare For a Successful Job Search for 2024Albert Qian
 
Social Media Marketing Trends 2024 // The Global Indie Insights
Social Media Marketing Trends 2024 // The Global Indie InsightsSocial Media Marketing Trends 2024 // The Global Indie Insights
Social Media Marketing Trends 2024 // The Global Indie InsightsKurio // The Social Media Age(ncy)
 
Trends In Paid Search: Navigating The Digital Landscape In 2024
Trends In Paid Search: Navigating The Digital Landscape In 2024Trends In Paid Search: Navigating The Digital Landscape In 2024
Trends In Paid Search: Navigating The Digital Landscape In 2024Search Engine Journal
 
5 Public speaking tips from TED - Visualized summary
5 Public speaking tips from TED - Visualized summary5 Public speaking tips from TED - Visualized summary
5 Public speaking tips from TED - Visualized summarySpeakerHub
 
ChatGPT and the Future of Work - Clark Boyd
ChatGPT and the Future of Work - Clark Boyd ChatGPT and the Future of Work - Clark Boyd
ChatGPT and the Future of Work - Clark Boyd Clark Boyd
 
Getting into the tech field. what next
Getting into the tech field. what next Getting into the tech field. what next
Getting into the tech field. what next Tessa Mero
 
Google's Just Not That Into You: Understanding Core Updates & Search Intent
Google's Just Not That Into You: Understanding Core Updates & Search IntentGoogle's Just Not That Into You: Understanding Core Updates & Search Intent
Google's Just Not That Into You: Understanding Core Updates & Search IntentLily Ray
 
Time Management & Productivity - Best Practices
Time Management & Productivity -  Best PracticesTime Management & Productivity -  Best Practices
Time Management & Productivity - Best PracticesVit Horky
 
The six step guide to practical project management
The six step guide to practical project managementThe six step guide to practical project management
The six step guide to practical project managementMindGenius
 
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...RachelPearson36
 
Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...
Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...
Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...Applitools
 
12 Ways to Increase Your Influence at Work
12 Ways to Increase Your Influence at Work12 Ways to Increase Your Influence at Work
12 Ways to Increase Your Influence at WorkGetSmarter
 
Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...DevGAMM Conference
 

Featured (20)

Skeleton Culture Code
Skeleton Culture CodeSkeleton Culture Code
Skeleton Culture Code
 
PEPSICO Presentation to CAGNY Conference Feb 2024
PEPSICO Presentation to CAGNY Conference Feb 2024PEPSICO Presentation to CAGNY Conference Feb 2024
PEPSICO Presentation to CAGNY Conference Feb 2024
 
Content Methodology: A Best Practices Report (Webinar)
Content Methodology: A Best Practices Report (Webinar)Content Methodology: A Best Practices Report (Webinar)
Content Methodology: A Best Practices Report (Webinar)
 
How to Prepare For a Successful Job Search for 2024
How to Prepare For a Successful Job Search for 2024How to Prepare For a Successful Job Search for 2024
How to Prepare For a Successful Job Search for 2024
 
Social Media Marketing Trends 2024 // The Global Indie Insights
Social Media Marketing Trends 2024 // The Global Indie InsightsSocial Media Marketing Trends 2024 // The Global Indie Insights
Social Media Marketing Trends 2024 // The Global Indie Insights
 
Trends In Paid Search: Navigating The Digital Landscape In 2024
Trends In Paid Search: Navigating The Digital Landscape In 2024Trends In Paid Search: Navigating The Digital Landscape In 2024
Trends In Paid Search: Navigating The Digital Landscape In 2024
 
5 Public speaking tips from TED - Visualized summary
5 Public speaking tips from TED - Visualized summary5 Public speaking tips from TED - Visualized summary
5 Public speaking tips from TED - Visualized summary
 
ChatGPT and the Future of Work - Clark Boyd
ChatGPT and the Future of Work - Clark Boyd ChatGPT and the Future of Work - Clark Boyd
ChatGPT and the Future of Work - Clark Boyd
 
Getting into the tech field. what next
Getting into the tech field. what next Getting into the tech field. what next
Getting into the tech field. what next
 
Google's Just Not That Into You: Understanding Core Updates & Search Intent
Google's Just Not That Into You: Understanding Core Updates & Search IntentGoogle's Just Not That Into You: Understanding Core Updates & Search Intent
Google's Just Not That Into You: Understanding Core Updates & Search Intent
 
How to have difficult conversations
How to have difficult conversations How to have difficult conversations
How to have difficult conversations
 
Introduction to Data Science
Introduction to Data ScienceIntroduction to Data Science
Introduction to Data Science
 
Time Management & Productivity - Best Practices
Time Management & Productivity -  Best PracticesTime Management & Productivity -  Best Practices
Time Management & Productivity - Best Practices
 
The six step guide to practical project management
The six step guide to practical project managementThe six step guide to practical project management
The six step guide to practical project management
 
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
 
Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...
Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...
Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...
 
12 Ways to Increase Your Influence at Work
12 Ways to Increase Your Influence at Work12 Ways to Increase Your Influence at Work
12 Ways to Increase Your Influence at Work
 
ChatGPT webinar slides
ChatGPT webinar slidesChatGPT webinar slides
ChatGPT webinar slides
 
More than Just Lines on a Map: Best Practices for U.S Bike Routes
More than Just Lines on a Map: Best Practices for U.S Bike RoutesMore than Just Lines on a Map: Best Practices for U.S Bike Routes
More than Just Lines on a Map: Best Practices for U.S Bike Routes
 
Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
 

Brazil Video Games Market and Marketing - Philip Driver

  • 1. BRIC Video Games Markets Market Data & Demographics Part 1- Brazil Why Brazil could be your number 1 region within 5 years.
  • 2. Brazil • Capital: Brasília • Currency: Brazilian real • Language: Portuguese • Population: 196,655,014 (2011) • GDP: $2.477 trillion USD (2011) Brazil’s market is strengthening with the official distribution of consoles like PlayStation (Sony) and Xbox (Microsoft). Estimates also identify Brazil as a market of about 40 million players across many different platforms. Brazil has the largest distribution of mobile phones in the world with over 180 million devices that provide a great opportunity for mobile gaming. Brazil's market for PCs is the fifth largest in the world and projected to become one of the top three. Brazil will host both the 2014 FIFA World Cup and the 2016 Olympic Games
  • 4. Brazil Economy • E-commerce in Latin America is forecast to be worth $73bn by 2015 • In Brazil, 59% of internet shoppers are most likely to buy consumer electronics and computer equipment. • In Brazil, 56% of internet shoppers consider ease of the online checkout process as a deciding factor on whether to buy. Brazil accounts for 61% of all ecommerce spending in LATAM
  • 5. Brazil Internet Usage • Brazil dominates LATAM for internet usage. • 36% of all internet users for the region are located in Brazil. • 61% of all Ecommerce for the region takes place in Brazil. • Total number of internet users is estimated at 40M+ more than UK, South Korea, Canada and Italy.
  • 7. Brazil Games Landscape • Publishers with a local office • Disney Interactive Studios • Electronic Arts • Gamemaxx • Microsoft • Sony Computer Entertainment • Ubisoft • Digital Retail Landscape The country is starting to embrace digital distribution with Steam firmly established in the region. However, like its High Street counterparts, the digital retailer’s sales are lower than expected due to high levels of piracy. There are even a number of pirate games stores that only sell illicit copies of new releases, winning over customers with a more flexible offering than legitimate outlets. Gamers are even allowed to swap titles in store shortly after purchase if they did not enjoy them. Part of the reason for piracy is that the tax rates are exceedingly high. Titles that are only six months old are often sold for in excess of $100.
  • 8. Local Governing Bodies and Organisations • Abragames - Founded in 2004 by a group of development companies, Abragames, Brazilian Association of Developers of Digital Games, emerged as a nonprofit entity and with the aim of strengthening the domestic industry of game development. • http://www.abragames.org • Brasil Games Show - The Brasil Game Show is the first Brazilian Game Fair held for the fifth consecutive time. The event is an achievement of a 100% national company focused on the growing market for electronic games. • http://www.brasilgameshow.com.br/ • Association Commercial, Industrial and Cultural Games - ACIGAMES is an association created in order to represent and regulate the industry and trade of electronic games and culturally stimulating the area of ​games in Brazil. • http://www.acigames.com.br/
  • 9. Video Game Taxes in Brazil • Retail Physical Product • 20% import tax • 30% IPI (industrialised product tax) • 9.25% Pis/Cofins (social contribtions) • 18 to 25% (province tax) • Digital Downloads • No IPI • No ICMs • 20% import tax (possibly avoided by local entity?) • 9.25% Pis/Confins • 5% ISS (city services tax)
  • 10. Taxes – Typical Examples • Physical Goods • Original Cost $50 + Taxes $26 = Total $76 • Digital Download • Original Cost $50 + Taxes $18.25 = Total $68.25 • Average retail mark-up 30% • Final Consumer Costs • AAA console title $100-$150 • AAA PC title $70-$90
  • 11. Piracy in Brazil • It is estimated that only 15% of digital copies of games in Brazil are official copies. • 81% do not pay for digital copies of games.
  • 12. Brazilian Gamers • 42% of Brazilians list video games as one of their recreational habits. The top platform being the mobile phone.
  • 13. Brazil Key Demographics • Class AB – Income US$ 2800+ • 20 M Brazilians • 10.6% of Population • Computer ownership or access 94% • Internet penetration 81% • Class C – Income US$ 660 to US$ 2800 • 50.5% of population • Computer ownership or access 33% • Internet Penetration 66%
  • 14. Gamer Demographics • Casual Games the most popular in Brazil • Followed closely by Social and Mobile • Whilst MMO games and PC Download games are popular to play due to prices and piracy publishers not benefiting to full potential. • Console games have poor penetration due to import costs.
  • 15. Games Monetisation • Brazil No2# for Social Gaming by monetisation model • Free to play also one of most popular models • Poor uptake of subscriptions and paid downloads – possibly due to piracy and prohibitive costs.
  • 16. Brazil Payment Methods • Credit Cards dominant but closely followed by local bank transfer option Boleto. • Main future opportunities around mobile payments and wallets
  • 17. Marketing In Brazil • Brazil • Marketing Mix in Brazil
  • 18. Brazil Regional Diversity 45.2% of mobile access lines are located in the south east of the country.
  • 19. Online Video Usage in Brazil
  • 20. Brazil loves twitter! – 20%+ market reach Brazil has second highest Twitter penetration in the world at 20.5% behind Indonesia at 20.8%. [Source: comScore, August 2010]
  • 21. Internet Consumerism • Internet usage and ecommerce expanding rapidly. • Most middle class consumers regularly using the internet. • Consumers readily adapting to ecommerce.
  • 22. Top Retail Sites in Brazil
  • 24. Coupon Site Popularity • In June 2011, 14.2% of regional visitors accessed the coupon category.
  • 26. Brazil: Main Media & Portal Owners Number of internet users in Brazil is increasing by 20%. [Source: comScore, February 2011]
  • 28. Facebook Brazil • Facebook has now overtaken Orkut as the dominent social platform in Brazil. • Facebook’s growth appears to be based on the games available to play on the social network. According to a survey of 250 Brazilian Internet users 18 to 35 years old undertaken by the Universidade Católica de Pelotas (UCPel), Brazil, nearly nine out of 10 users (86%) indicated that games are their favorite thing to do on Facebook, and a strong motivation to keep coming back.
  • 30. Brazil Search Marketing • Paid search is expected to grow by 20.6% in 2011 and by a further 15.6% over the following five years. • 4.79 percent of paid search clicks in the region come from tablet users. The cost per click in Brazil is also lower for tablet ads, at $0.12 compared to $0.16 for desktop. • 35% of mobile users in Brazil have internet access on their phones.
  • 31. Internet Advertising • Investment in online advertising in Latin America is expected to increase to $4.9bn by 2015 • Around 5% of advertising spend is currently spent online in Latin America.
  • 32. Desktop Browsers • In South America Internet Explorer is the most popular desktop browser with 39.58% market share.
  • 33. Mobile Browsers • Top nine mobile browsers in South America, October 2010 – October 2011.
  • 34. Brazil Mobile Commerce • A Smartphone revolution taking place in Brazil -- a recent Nielsen survey showed a 165 percent increase in smartphone sales year- on-year. • There are 19 million smartphones in Brazil, almost 9% of the total mobile phone market. • Brazil currently puts a hefty fee on imported goods. Despite these (which reportedly can triple prices) iPhone already accounts for an estimated 10 percent of local smartphone sales. (In Brazil, the iPad 2 retails at $887). • However, Foxconn plans to build its next Apple plant in Sao Paulo. This will effectively bypass import laws and possibly give market dominance in the region.
  • 35. Brazil Mobile Commerce • 33.9% of Brazilian mobile owners access social networks through their phones. • 83% of Brazilian mobile owners who use mobile internet also access social networks through their phones. • 33% of Brazilian mobile internet users access social networks through mobile phones as much as or more than from their computer.
  • 36. Brazil Mobile Commerce • 14.5% of mobile owners in Brazil have made purchases via mobile websites or apps.
  • 37. Brazil Mobile Commerce • In Brazil, making purchases via mobile is more prevalent among the higher classes.
  • 38. Brazil Mobile Commerce • 62.6% of iPhone owners in Brazil have made purchases via mobile websites or apps.
  • 39. Brazil Mobile Commerce • 34.6% of smartphone owners in Brazil are aged 25-34.
  • 40. Brazil Mobile Commerce • In Brazil, games are the most popular mobile app category.
  • 41. Brazil Mobile Commerce • In Brazil, social network apps are considered the most important.
  • 42. Brazil Mobile Commerce Marketing • Ad agency mobile marketing plans in Brazil. [Source: Nielsen, June 2011] • 83% of agencies in Brazil believe that mobile marketing is a channel that can be better exploited. • 62% of the agencies surveyed in Brazil launched mobile marketing campaigns in 2010, a figure that is expected to increase to 87% in 2011. • Most mobile marketing initiatives in Brazil use multimedia with games and music and video downloads, and for 2011, 50% of campaigns will reach iPhones users alone.
  • 43. Blogs & Brands • Blogs and user reviews are major influencers of user behaviour in Brazil.
  • 44. Brazil Video Games Markets Conclusions • Vast potential for ecommerce, social and free to play. • Gamer culture. • High taxes and piracy barrier to entry. • No established major retailers. • Internet penetration increasing rapidly. • Most pronounced increase in mobile internet and smart phone use. • Internet use highly social with most users having either Facebook, Orkut or Google+ accounts. • Potential to be top 3 locale within 5 years. • Key marketing areas • Social • Mobile & Tablet • Portals
  • 45. Game Over About the Author: Philip Driver is a digital distribution, online retail and marketing expert specialising in the field of video games. A video games industry veteran of nearly ten years he lives in the UK and finds that having children really gets in the way of playing Skyrim. You can follow him on Twitter http://twitter.com/PobiWan Linkedin http://uk.linkedin.com/pub/philip-driver/14/538/b16
  • 46. References • The Gamer is always right – White Paper – www.superdataresearch.com • Monetizing Emerging Games’ Markets – Global Collect/Newzoo • The future of Brazil Games Market – Gameworld/Tambor • Brazil Digital Market Landscape Report – Econsultancy • Google • Wikipedia • Facebook