DMO's chief marketing officer reports on Brazil's increasing internet connectivity and mobile penetration. Marketers, take note.

The following is the first of a series on BRIC (Brazil, Russia, India, China)-- emerging markets online.

With all the news lately focusing on China's lucrative internet opportunities, it would benefit marketers to start analyzing other countries in emerging markets BRIC. Brazil, for example, is the main online market of Latin America. With more than 25 million internet users, according to eTForecasts,  January 2006, Brazil is responsible for 75 percent of business-to-consumer (B2C) transactions in the region.

As the tenth largest market in the world in terms of internet users, Brazil's total penetration for mobile online usage is higher than China's, at 14.1 percent vs. 8.5 percent, according to BuddeComm, an independent global telecommunications research firm.

And, according to the Interactive Media Association, online ad spending increased 35 percent last year in Brazil. However, even with double-digit growth, online media represents just three percent of total media spend-- providing great opportunity for online marketers.

Along with internet penetration, it is imperative to note the four main facets that contribute to Brazil's leading digital growth opportunities: an increase in mobile marketing, the importance of the internet as a social platform, the growth of IPTV and the rise of ecommerce.

Mobile marketing
Brazil's mobile market is the fifth largest in the world behind China, the United States, Japan and Russia. Brazil is the largest mobile market in its region, i.e. it has the highest penetration in South America except for Chile. While Brazil is a smaller market than China, Brazil's total penetration for mobile usage is higher than China's, at 50 percent vs. 30 percent.

Social networking
One only needs to look at Orkut -- Google's social networking platform -- to identify the country's online users as being very viral: 71.94 percent of Orkut's members are from Brazil. This is largely due to the Brazilian disposition, which is heavily reliant on contacts/connections-- the Brazilian character is based on the notion that one's social position depends exclusively on the friends one has; they are unable to conceive a relationship that is not based of friendship. There is a Brazilian phrase: "mais vale ter amigos na praça que dinheiro em caixa"-- "it is worth more to have friends in the marketplace than cash."

IPTV
According to the Technology Marketing Corporation (TMCNet), "IPTV  is poised for tremendous growth. Not surprisingly, China is predicted to be the runaway leader with nearly five million subscribers expected by 2010. But like the United States, Brazil will be one of the regions' fastest growing markets for IPTV, as local governments implement incentive policies for the dissemination of the technology which, it is expected, will drastically increase the number of Brazilians with internet access."

In addition, Brazil's third largest operator, Brasil Telecom, is set to launch IPTV service in the third quarter of this year.

E-commerce
"In 2004, Brazilians with little or no access to credit facilities began receiving offers for banking services, not just in banks, but also in shops, post offices and through deduction services from their salaries or pensions," according to EuroMonitor International. "Laws were passed in order to further the government's plans, in which the president said he wants everyone in Brazil to have access to credit and banking. These initiatives contributed to a growth in financial cards."

Additionally, economic growth contributed to the growth of credit cards, as did increased competition between banks, financial institutions and stores that resulted in more marketing campaigns and lower fees.

Currently, 12 percent of 184.2M in Brazil have credit cards. Fifty percent of the population has a debit card/cheques/bancaria notas.

By 2008, financial cards revenues are predicted to reach R$557 billion in sales.

It is evident that Brazil has a very promising future-- both for online advertising opportunities as well as mobile marketing and other emerging technologies. Brazil is becoming a major player in these industries and will grow dramatically in the foreseeable future. Not only do the number of internet and mobile users increase daily, but the many initiatives that are taking place to penetrate this market are incredible.

Please stay tuned for the next article on my BRIC series-- Russia.

Elizabeth M. Lloyd is chief marketing officer of Dragon Media Online. Read full bio here.