Chile Online Landscape

More than 14 million Chileans are now online, representing 77% internet penetration (8% growth from 2016 – 2017). Facebook is the most popular social network, while 13 million Chileans (or 71% of the population) logging on a monthly basis. 92% of Facebook users access the networking platform using their smartphones, while 68% of users are on Facebook on a daily basis.

There are more mobile phone subscriptions in Chile than there are people. With 25.8 million active phone subscriptions, every Chilean could be thought to own 1.4 devices. 68% of phone subscriptions are pre-paid, while 32% are on monthly contracts. 12 million use their mobile phones to access social media platforms, illustrating the increased penetration of smartphones in the market.

The best Chilean PR and marketing agencies recognise that 41% of all Chile’s web traffic is conducted using mobile phones, and all campaigns should incorporate mobile elements into inbound marketing campaigns, while 56% of the population use their desktops or laptops for their online needs. However, only 2% of web traffic is garnered using tablets.

Ecommerce shows great growth in Chile, not only in urban centres, but increasingly so in more rural regions, being used as a means of overcoming geographic distance for shoppers. Affordable internet access, and efficient wifi networks, coupled with free wifi hotspots in many public areas, is boosting this growth in internet retailing, which is considerably higher amongst younger Chilean consumers. As Chileans become more familiar with the benefits of online shopping, increased growth can be expected in the years to come. Online shopping was expected to be worth USD$3.3 billion in 2017 (3% of GDP), a dramatic jump from USD$1.2 billion five years previously.

Falabella is the online leader in Chile, commanding 15% market share in 2016, using quirky m-commerce applications which allow consumers to “try on” clothes before buying by uploading their photo, and using the app to see how items may look. Resulting images can be easily shared on social media, creating a low-cost marketing tool for this online giant.

Newcomers and digital and social media agencies in Chile should take note that 29% of online consumers think mobile sites are not user friendly. 23% say they buy something online at least once a month, while 40% start their search on Amazon.

CyberDay is celebrated every May to promote online shopping in Chile. CyberDay 2017 saw a 24% hike in sales over the same day in 2016, netting USD$145 million in 900,000 transactions. Most purchases were made in travel & tourism; IT; and clothing.