2014 MEDIA MARKET REPORT FOR LATIN AMERICA AND BRAZIL

CONTENTS

Print: Market Indicators of Growth

TV: Trends in Ad Spend & Pay TV

Penetration

Internet: Audience size, future growth, sites

with most reach, user attitudes toward

Internet advertising, average CTRs in region

and in major markets

E-commerce: Total sales for 2012, projections

for 2013, growth since 2003, most popular

products

Mobile Market: Penetration of mobile phones,

smartphones & tablets, the triple-digit growth

of mobile Internet in Latin America and

response to mobile advertising

A Growing Consumer Class:

The surge of the class C middle class in

the region

Media Penetration in Latin America

Ad Spend Projections for Latam: 2013 and 2014

Social Media: Use, most popular sites, reach,

influence on consumer purchase decisions

Online Videos: The audience, consumption trends

and advertising potencial

A GROWING CONSUMER CLASS: THE SURGE OF CLASS C

Source: The World Bank, Economic Mobility and the Rise of the Latin American Middle Class

1 in 3

Families in Latin America are middle class

IN THE PAST DECADE, MORE THAN 50 MILLION PEOPLE HAVE JOINED

THE MIDDLE CLASS IN LATIN AMERICA.

Sources: 1United Nations, 2World Bank, 3Cetelam report O Observador Brasil 2012, 4Consultora W, 5Departamento Administrativo Nacional de

Estadística, 6Asociacion Mexicana de Agencias de Investigacion de Mercados y Opinión Pública, 7Asociación Peruana de Empresas de

Investigación de Mercados, 8Novomerc Chile

7%

21%

3%

31%

7%

13%

47%

55% 52%

33% 32% 28%

0%

10%

20%

30%

40%

50%

60%

Argentina Brazil Chile Colombia Mexico Peru

Classes AB

Class C

LATIN AMERICA’S MIDDLE CLASS (CLASS C) HAS BECOME A SIGNIFICANT PORTION OF THE POPULATION IN SEVERAL KEY MARKETS…

…PARTICULARLY IN BRAZIL. WHY IS THIS SIGNIFICANT? FIRST, CLASS C IS GROWING QUICKLY.

105,000,000 Brazilians were Class C in 2011

55% of the population

In 2014

58% of the population

will be Class C

40,000,000

Brazilians joined Class C between 2003-2011

Source: Cetelem BGN Observador Brasil, Fecomercio SP, Data Popular

SECOND, CLASS C IS SPENDING HUGELY:

R$1.089 trillion

2012

Sources: IPC Target, FecomercioSP

R$1.4 trillion*

2015

*more than classes A and B combined!

MEDIA PENETRATION IN LATIN AMERICA

Source: IBOPE Media Book 2013 except Mexico numbers, which are from IBOPE Media Book 2012

Free TV Pay TV Radio Newspapers Magazines OOH Internet

Argentina 93% 74% 62% 40% 19% 90% 56%

Brazil 96% 40% 73% 31% 36% 83% 60%

Chile 97% 63% 58% 45% 21% 91% 64%

Colombia 95% 86% 75% 78% 41% 99% 50%

Costa Rica 97% 64% 65% 77% 8% 91% 71%

Ecuador 97% 27% 69% 48% 30% 96% 57%

Guatemala 77% 53% 82% 78% 6% 88% 30%

Honduras 92% 84% 77% 76% 36% 82% 41%

Mexico 97% 36% 54% 27% 27% 98% 48%

Panama 94% 50% 60% 73% 19% 75% 53%

Peru 98% 64% 81% 67% 15% 100% 56%

Penetration by Medium

TV, OUT-OF-HOME AND RADIO HAVE THE DEEPEST PENETRATION… BUT INTERNET IS GROWING SIGNIFICANTLY.

Sources: LAMAC, Consejo Nacional de Lectura, ENTIC, comScore, IBOPE, Motorola Mobility, Secom, Encuesta

UDP, UM Chile, DANE, EGM, Google, Notimex, Asociación Mexicana de Internet, ConcorTV, Opción Consultores

Available data for consumption by medium

TV LEADS MEDIA CONSUMPTION IN LATAM BUT INTERNET IS GAINING

TV RADIO NEWSPAPERS MAGAZINES INTERNET

Argentina 6 hrs/day 56% listen daily 70% buy daily

newspaper no data 26 hrs/month

Brazil 20 hrs/week 69% listen daily 31% read newspapers 35% read

magazines 3.5 hrs/day

Chile 3 hrs, 52 min/day 48% listen daily 20% read newspapers no data 11 hrs/week

Colombia 4hrs/day 2.4 hrs/day 13% read newspapers no data 4.3 hrs/day

Mexico 2-4 hrs/day 56% listen daily 27% read newspapers no data 5 hrs/day online

Peru 3 hrs, 20 min/day

2 hrs, 53 min/day 30 minutes/day no data 2 hrs, 40 min/day

Uruguay no data 61% listen daily 12% read every day no data no data

AD SPEND PROJECTIONS FOR LATAM: 2013 AND

2014

Magna Global projects nearly 13% growth in ad spend for Latin America in 2014—more than double the growth of North America and Western Europe

2013 2014

Latin America 9.5% 12.7%

North America 1.5% 5.5%

Western Europe -0.8% 5.7%

Central & Eastern Europe 7.9% 10.5%

Asia Pacific 6.3% 8.7%

Middle East, North Africa 2.8% 6.3%

Rest of World 9.3% 10%

LATIN AMERICA IS THE WORLD’S FASTEST-GROWING REGION IN AD SPEND...

IN 2014, BRAZIL WILL BECOME THE #5 AD MARKET IN THE WORLD.

Source: Zenith Optimedia

Rank Country

Ad Spend in 2014 (billions)

#1 United States 173,593

#2 Japan 53,434

#3 China 48,755

#4 Germany 27,548

#5 Brazil 22,216

Argentina: up 30% in 20131

Sources: 1Cámara Argentina de Agencias de Medios, 2Projeto Inter-Meios, 3Asomedios and Andiarios, 4IAB Colombia, 5Confederación de la

Industria de la Comunicación Mercadotécnica, 6Compañía Peruana de Estudios de Mercados, 7Asociación Uruguaya de Agencias de Publicidad, 8Magna Global

LATIN AMERICA’S AD SPEND IS GROWING STRONGLY IN ALL MAJOR MARKETS.

Brazil: up 7% in 20132

Colombia: offline media up 12.7% in 20133, online ad spend up 31%4

Mexico: up 38% in 2012 (no numbers for 2013 yet)5

Peru: up 8% in 20136

Uruguay: up 2.6% in 20137

Venezuela: up 19% in 20138

PRINT MEDIA IN LATIN AMERICA

Latin American newspapers will grow in revenue by 5.5% per year through 2016 to reach a total of US$10.4 billion1

Sources: 1PriceWaterhouseCoopers Global Entertainment Media Outlook 2013-2017, 2WAN-INFRA,, 3Instituto Verificador de Circulação, 4KPMG

PRINT IS STILL A STRONG MEDIUM THROUGHOUT LATIN AMERICA. MARKET INDICATORS THAT SUGGEST THIS INCLUDE:

Newspaper circulation went up by 5% in Latin America between 2006 and 20112

In 2009 magazine ad spend dropped in every region— EXCEPT for Latin America, and it’s forecast to grow through 20161

Latin American newspaper revenues went up by 65% between 2006 and 2011 and by 9.1% in 20122

Newspaper circulation in Brazil grew by 1.8% in 20123, magazine will grow by 7% between 2013 and 20171

11.9% CAGR growth is forecast for newspaper ad spend in Argentina through 20161

Newspapers grew by 50% in circulation in Peru between 2007 and 20124

Sources: Cámara Argentina de Agencias de Medios, Projeto Inter-Meios, Asociación Chilena de Agencias de Publicidad, Asomedios, Ipsa

Group Latin America, Compañía Peruana de Estudios de Mercados y Opinión Pública, Comité Certificador de Medios ANDA-FEVAP

Argentina Brazil Chile Colombia Ecuador Peru Venezuela

32%

16%

32%

26%

10%

17%

28%

Print ranks #1 in ad spend share in Argentina and #2 (after free TV) in Brazil, Chile, Colombia, Ecuador, Peru and Venezuela

PRINT ALSO COMMANDS A MAJOR PORTION OF AD SPEND IN MANY LATAM MARKETS.

Print's Share of Ad Spend in Key Latam Markets, 2013

TV IN LATIN AMERICA

40%

66%

44%

48%

52% 49%

56%

Argentina Brazil Chile Colombia Mexico Peru Uruguay

Percentage of TV’s Ad Spend Share, 2011

FREE TV RULES AD SPEND IN MOST OF LATIN AMERICA…

Sources (left to right): Cámara Argentina de Agencias de Medios, Projeto Inter-Meios, Asociación Chilena de Agencias de Publicidad, Asomedios,

Confederación de la Industria de la Comunicación Mercadotécnica, Compañía Peruana de Estudios de Mercados, Asociación Uruguaya de

Agencias de Publicidad

Free TV Ad Spend Share in Major Latam Markets, 2013

Sources: 1Dataxis, 2Anatel, 3Centro de Investigación en Innovación en Telecomunicaciones, 4LAMAC, 5Business Bureau

pay TV penetration

in Latam by 20171

of homes in Brazil will be subscribed to pay TV by 2018—potential audience of 173 million2

9.2 million homes in Argentina have pay TV service4

Penetration of pay TV

in Mexico in

December 20133

7.7 million pay TV subscribers in Colombia5

Percentage of TV’s Ad Spend Share, 2011

…BUT PAY TV PENETRATION REACHED 55% IN ALL OF LATAM IN APRIL 2013 AND IS GROWING RAPIDLY.

68%

90%

50%

INTERNET IN LATIN AMERICA

Sources: *estimate from eMarketer, Internet WorldStats, comScore, IBOPE, Subsecretaría de Telecomunicaciones, Asociación Mexicana del Internet

Percentage of TV’s Ad Spend Share, 2011

AS OF DECEMBER 2013, INTERNET COMMANDS A HUGE AUDIENCE IN LATIN AMERICA: 299.5 MILLION*.

28,000,000 3,087,000

105,000,000 10,000,000

26,936,343 2,000,000

4,643,393 6,663,558

1,491,480 2,280,000

1,319,174 59,000,000

783,800 1,503,441

1,563,440 10,785,000

1,771,643 1,950,000

13,000,000

Argentina

Bolivia

Brazil

Chile

Colombia

Costa Rica

Dominican Republic

Ecuador

El Salvador

Guatemala

Honduras

Mexico

Nicaragua

Panama

Paraguay

Peru

Puerto Rico

Uruguay

Venezuela

Growth projections for specific markets:

Sources: 1LACNIC, 2Comitê Gestor da Internet, 3Pyramid Group, 4Latin America & Caribbean Network Information Centre, 5Comisión Nacional

de Telecomunicaciones de Paraguay

Percentage of TV’s Ad Spend Share, 2011

BY 2015, THERE WILL BE 60% INTERNET PENETRATION IN LATIN AMERICA AND 120 MILLION ADDITIONAL USERS.1

Brazil 168 million by 2014, up from 105 million in 20132

Chile 16.4 million by 2015, up from 10 million in 20123

Ecuador 7.5 million by 2015, up from 6.6 million in 20134

Mexico 65 million by 2015, up from 52 million in 20134

Paraguay 3.4 million by 2015, up from 1.5 million in 20125

Types of Web Sites with Deepest Reach among

the Region’s Internautas:

Source: Futuro Digital, comScore, March 2013

Percentage of TV’s Ad Spend Share, 2011

HERE’S WHERE TO REACH LATIN AMERICA’S INTERNET USERS.

98.8% 97.5% 97.3% 96.9% 94.0%

85.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Sources: 1Ipsos, 2Google, 3Asociación Mexicana del Internet, 4comScore, 5Oh! Panel

Internet closes sales in Latin America.

80% of Brazilian Internet users say that the Internet is how they first find out about new products1

73% of Mexican Internet users research products online before shopping2 and 75% stop to view online ads3

8 of 10 Internet users in Latin America research products online before buying4

89% of Colombian Internet users do online research before buying a car5

SOCIAL MEDIA IN LATIN AMERICA

Of Latin American Internet users are on

social media11

Sources: 1comScore, 2Socialbakers, Facebook press release August 2013

SOCIAL MEDIA HAVE DEEP PENETRATION AND HEAVY ENGAGEMENT IN THE REGION.

Growth in Facebook users in 2012 in Latin America: more

than 200 million users around the region2

Latin American Internet users spend an average of

10 hours per month on social media sites, more than double the amount spent on other popular

types of sites1

95% 19% 10

• 73% of Latin Americans regularly read comments about brands on social media

• 66.9% trust these comments • 62% say these comments influence their

purchase decisions

Source: Oh! Panel study, May 2011

SOCIAL MEDIA INFLUENCE THE PURCHASE DECISIONS OF 62% OF LATIN AMERICANS.

• 58.9% of Latin Americans go on social media to find product information

• 36.8% of Latin Americans follow brands on social media

• 78.6% follow brands to learn about new products offered by that brand

Source: comScore Futuro Digital Latinoamérica 2013

FACEBOOK IS LATAM’S AMERICA’S MOST POPULAR SOCIAL MEDIA SITE BUT OTHER SITES HAVE GROWN HUGELY IN THE REGION.

770% 270%

88% 98% 236%

Increase in Unique Visitors, March 2012 to March 2013

ONLINE VIDEOS IN LATIN AMERICA

11.5 million videos watched every month in Argentina, Brazil, Chile and Mexico

Source: comScore Futuro Digital Latinoamérica 2013

ONLINE VIDEO CONSUMPTION HAS SPIKED SIGNIFICANTLY IN LATIN AMERICA.

95.5%: online videos have the deepest reach in Argentina, followed by Chile (91.6%), Brazil (85.9%) and Mexico (81.3%)

176 online videos a month are watched by Brazilians, while Chileans watch 144 per month, Mexicans watch 125 per month and Argentines watch 105 per month

E-COMMERCE IN LATIN AMERICA

Source: 1América Economía & Visa Latin America E-Commerce study, 2012, 2Instituto Latinoamericano de Comercio Electrónico

E-COMMERCE IN LATIN AMERICA HAS GROWN BY 27 TIMES SINCE 2003.

E-commerce sales in Latam

in 2003: US$1.6 billion1

E-commerce sales in Latam

in 2013:

US$70 billion2

Clothes

Computer electronics

Music, movies or videos

Appliances

Computer hardware

Source: comScore

OVERALL, CLOTHES ARE THE PRODUCT THAT LATIN AMERICANS BUY THE MOST ONLINE. A 2012 comScore e-commerce study of Latin America revealed the most popular products among online shoppers in the region:

1

2

3

4

5

6

7

8

9

10

Entertainment tickets

Vacation/travel

Health and beauty care

Books and magazines

Sports and fitness

Sources: 1América Economía & Visa E-Commerce Study, Latin America, 2012, 2e-bit

The percentage of e-commerce sales in

Latin America that are generated in Brazil1

2013 e-commerce sales in Brazil2

Projected 2014 e-commerce sales in Brazil2

BRAZIL IS THE LEADING E-COMMERCE MARKET IN LATIN AMERICA…

59% US$ 13.4

billion

US$ 16 billion

…BUT OTHER LATIN AMERICAN MARKETS ARE POSTING STRONG E-COMMERCE NUMBERS.

Sources: 1América Economía & Visa Latam E-commerce study, 2012, 2Asociación Mexicana de Internet, 3eMarketer, 3Cámara Argentina de

Comercio Electrónico, 4Cámara Colombiana de Comercio Electrónico, 5Cámara de Comercio de Santiago

Mexico • #2 e-commerce market in Latam1

• US$9.2 billion in sales in 20132

• 20% projected growth in 20142

• Top 5 selling products are (#1) Music/movies, (#2) computers, (#3) clothes & accessories, (#4) tickets to shows, (#5) hotel reservations2

Argentina • US$3.1 billion in sales in 2013, 50%

projected growth in 20143

• 5 best-selling products are (#1) smartphones, (#2) women’s clothes, (#3) car accessories, (#4) men’s clothes, (#5) home decor3

Colombia • US$2.1 billion in sales in 20121

• US$3 billion in sales in 20134

Chile • US$1.3 billion in sales in 20121

• US$1.6 billion in sales in 20135

LATIN AMERICA’S MOBILE MARKET

MOBILE PENETRATION IN LATIN AMERICA IS AT 105% AND WILL REACH 130% BY 20151.

Sources: 1GSMA, Comisión Nacional de Comunicaciones de Argentina, Anatel, Subsecretaría de Telecomunicaciones, Ministerio de Tecnologías de la

Información y las Comunicaciones, Ministerio de Ambiente, Energía y Telecomunicaciones, Superintendencia de Telecomunicaciones, Pyramid

Research, Superintendencia de Telecomunicaciones, Unión Internacional de Telecomunicaciones, Everis, Oficina de Desarrollo de las

Telecomunicaciones de la UIT, El Ministerio de Transportes y Comunicaciones, Instituto Nacional de Estadísticas, Comisión Nacional de

Telecomunicaciones, Vision Mobile, Google, 3D Chile, LG Mobile Colombia, IDC, Futuro Labs

142% 136% 134%

106% 101%

87% 98%

20% 23% 30%

7% 10%

35%

17%

0%

20%

40%

60%

80%

100%

120%

140%

Argentina Brazil Chile Colombia Costa Rica Mexico Peru

Mobile penetration Smartphone penetration

SMARTPHONE SALES CONTINUE TO SPIKE IN LATIN AMERICA1.

45% growth in new users of smartphones

in Latin America during

20131

55%

Source: eMarketer

INDIVIDUAL LATAM MARKETS ALSO POSTING STRONG SMARTPHONE SALES. GROWTH IN 2013:

Sources: 1IDC, 2Samsung Peru, projected growth for all of 2013, 3GK Retail y Technology

122% in Brazil1

59% in Mexico1

98% in Peru2

96% in Chile3

LATIN AMERICANS ALSO ARE BUYING MORE TABLETS THAN EVER BEFORE.

234% increase in Latam

tablet sales between Q1 2012

& Q1 2013

Source: IDC

Argentina: 125% increase in tablet sales in 2013: 900,000 units sold1

Sources: 1Carrier y Asociados, 2IDC, 3IDC and Dominio Consultores, 4IDC Mexico

SEVERAL LATAM MARKETS ARE ADOPTING TABLETS AT SIGNIFICANT RATES.

Brazil: Tablet sales reached 8 million in 2013 and are projected to reach 10.7 million in 20142

Chile: 1.5 million sold in 2014, more than 2 million units projected for 20142

Peru: Projected tablet sales of 1.6 million in 2013, a 132% increase compared to 20123

Mexico: Tablet sales reached 4.3 million in 2013 and will reach 6.2 million units by 20144

Sources: 1Telebrasil, 2Convergencia Research, 3COFETEL, 4Subsecretaría de Telecomunicaciones, 5Ministerio de Tecnologías de la

Información y las Comunicaciones, 6Unidad Reguladora de los Servicios de Comunicación

Increase in Argentina’s mobile broadband

subscribers, 2010-20122

Growth in Brazil’s mobile broadband subscribers,

20131

Chile’s growth in mobile broadband connections, 2009-

20134

México’s growth in mobile Internet use, 2012-20133

Increase in Colombia’s broadband connections,

2010-20135

Uruguay’s growth in mobile Internet use,

20136

MOBILE INTERNET IS GROWING SIGNIFICANTLY IN LATIN AMERICA.

55% 194% 50%

770% 300% 47%

LATIN AMERICANS ARE SHOWING STRONG RESPONSE TO MOBILE ADS.

Sources: 1MediaMinds, 2Hunt Mobile Ads

Average CTR for mobile banners in Latin America, higher than that of Australia, Eastern Europe and most of Asia1

Of Latam mobile device users respond favorably to geo-targeted ads1

Mobile ad CTR for Colombia2

Mobile ad CTR for Mexico2

Mobile ad CTR for Brazil2

Mobile ad CTR for Argentina2

.60% .56% .61% .52%

33% .48%

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