The Latin American social networking wars: Market leader Hi5 has been growing, but so has Facebook — and Sonico?

Latin America is a growing online market, with monthly unique visitors in the region growing from 53.6 million unique visitors last June, according to comScore’s first report covering the entire region, to 61.6 million this past April.

More internet users means more opportunity for social networks. For example, a new social network, Sonico, claims to have gained 17 million registered users since it launched last July, and has just raised a $4.3 million round from DN Capital and angel investors.

But Hi5 is the largest social network in the Spanish-speaking countries (except for Google’s Orkut, which dominates Brazil). San Francisco-based hi5 gained its position by doing things like introducing a Spanish version of its site a couple of years go, while market leaders Facebook and MySpace focused on US growth. This past April, hi5 had 12.8 million unique visitors, about a quarter of its 45 million monthly visitors around the world. That’s a 20 percent increase from two months ago, when the site had 10.7 million unique visitors in Latin America, according to Comscore. This is part of hi5’s worldwide growth trend: Hi5 has grown from 31.5 million last December, according to comScore.

ComScore data doesn’t count internet cafes nor does it count mobile traffic. Hi5’s internal numbers, with those two traffic sources included, show 16 million users a month in Latin America, with more than 30 million total registered users in the region through May.

But Facebook has shown the most shocking growth around the world over the past half year, coming in with 116.4 million worldwide users in April, over MySpace’s 115.7 million. Facebook is also booming in Latin America. Earlier this month, I wrote that the company had gone from four to six million Latin American users in March, likely spurred by the introduction of its Spanish-language version then. ComScore’s latest numbers from Latin America now show that Facebook had 7.7 million unique visitors in April.

So, Facebook appears to be growing faster than hi5 — although Sonico claims to be the fastest-growing Latin American social network.

Meanwhile, Fox Media Interactive has dropped from 14 million unique users last July to 11.7 million in April. It’s worth noting that Intel funded Vostu, which has raised a seed round of $1.3 million for a social networking platform that allows consumers to build their own social networks.

So what’s driving some networks’ growth, besides shear numbers of new Latin American users? Maybe, for Facebook, the fact that it is largely comprised of real people providing factual information about themselves — not fake profiles like what you see on other social networks — makes the difference? It’s not clear what’s happening driving Sonico’s growth, and anyway, it doesn’t register as a top site with comscore. Hi5, meanwhile, has continued with its market-specific customizations. It has recently introduced two new Spanish versions, for the Argentinian and Castilian dialects, with more dialect translations to come — using user-generated translations like what Facebook has already done. It also launched a Brazilian Portuguese version in March to compete against Orkut. It has also introduced a Spanish-language help page. Maybe this will allow it to keep growing, and maintain its market leadership?

There are also local competitors that provide social networking services — like Batanga, which had 8.8 million users in April. Blog platforms like Wordpress, Blogger and local services are also larger than hi5 or any of its competitors.

Mobile social networking usage is exploding around the world, even more than web usage, as hi5’s internal data already suggests. Already, 375 million Latin Americans own a mobile phone — 66 percent of the total population, versus the 46 percent worldwide average. The mobile versions of large web-based social networks seem to have a big advantage when it comes to getting big on mobile, because web users go to the mobile versions of their web social network. This means sites like hi5 and Facebook have a lot of leverage in taking over the market.

Update: Per the comments below, I’ve added another table from this past April’s comScore report on Latin America.

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About the Author, Eric Eldon

Eric currently covers digital media technology and business news, especially what's happening on social networks and their platforms. He also writes and edits stories about venture capital, and lots of other stuff, too. He started at VentureBeat in the spring of 2007, half a year or so after Matt Marshall left his reporting job at the San Jose Mercury News to found the site. Eric previously cofounded a startup called Writewith, that was building editorial software for newspapers and other groups of writers. The startup didn't work out, but he learned a lot.

  • For a better understanding of the region I suggest you breakdown Latin America in the two main and distinct sub regions (Brazil and the Spanish speaking countries). Look at them separately. They don´t mix in social media. Different languages, different culture. When you mix everything together you get something very weird.
  • Flavio
    Hey Eric!

    I agree with dsheise comment. To evaluate the region, I suggest splitting Latin America in two parts with almost the same size in population and users.

    After 4 years I see Google's property loosing weight mainly because of the lack of innovation and the crimes evolving the social network largely used by pedophiles, drug dealers and all the sorts of gangs as a medium. Friends of mine who still didn't delete their Orkut profiles, just abandoned it, like I did.

    Myspace opened an office down here about 6 months ago. As you mentioned, they have a Pt-Br version of their site and are doing a lot of activities trying to promote their 'services'. As happened in US, the growth of Myspace is coming mostly from music lovers and the cluttered interface just scares everyone.

    Even with the numbers showing the contrary, at least in Brazil I don't see Myspace doing better than Facebook, to where most Orkut users are migrating.

    I totally agree with you when you point that the main weapon in favor of Facebook is "the fact that it is largely comprised of real people providing factual information about themselves". I'd also point out a "novelty effect" as other reason that is empowering Facebook's presence in Brazil.

    Hi5 and Sonico have no presence in Brazil.

    Best!
    Flavio
    Sao Paulo - Brazil
  • Thanks for the comments, guys. Here's a few thoughts:

    As I wrote, Orkut is big in Brazil while hi5 and other social networks are big in Spanish-speaking countries. Note that comScore doesn't break down Brazil vs. all of Spanish-speaking Latin America.

    One way to get a picture of the Spanish-Portuguese division, though, is looking at hi5's traffic, since its main presence is in Spanish-speaking countries.

    If you follow the link I'd included to comScore's data from April, you'll see the graph showing the breakdown of internet users by country. That will give you a more granular look at the market divisions. I'm attaching it to the story, at the bottom.

    Flavio, thanks for your comments on the Brazilian social networking market. It's pretty interesting stuff about the changes happening in Brazil -- do you have data sources about that?
  • Flavio
    Hey Eric.

    I'll try to get some data with Netratings.
  • Evan Epstein
    Eric, good article about the social networking scene in Latin America - great to see some coverage on the region. However, it makes no sense when you write that "Hi5 has recently introduced two new Spanish versions, for the Argentinian and Castilian dialects" - please, there is no such "dialects"... when in Spanish a reference is made to "Castellano" it's actually Spanish, and Argentina is a Spanish speaking country. So your statement is confusing and misleading at the minimum. Thanks.
  • Even with the numbers showing the contrary, at least in Brazil I don't see Myspace doing better than Facebook, to where most Orkut users are migrating.
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