In Brazil, Internet Surpasses Newspapers in Ad Spend

In Brazil, Internet Surpasses Newspapers in Ad Spend

While TV still rules ad spend in Brazil, Internet has grown significantly and now is #2, commanding larger amounts of ad spend than newspapers, magazines, radio, pay TV and out of home advertising.

These new figures are from IAB Brasil and they are different from those recently released by Projeto Inter-Meios, which indicated that in 2012 newspapers were the #2 medium in Brazil in terms of ad spend, with 11% share and R$ 3.3 billion (US$1.65 billion).

The discrepancy comes from the fact that Projeto Inter-Meios only factors in display advertising. As such, the organization indicated a total of R$1.5 billion (US$750 million) in Internet ad spend for 2012, which means that online’s share of ad spend in Brazil in 2012 was just 5%.

In contrast, IAB Brasil counts display advertising, social media advertising and also search/classified advertising. This significantly changes the picture. According to IAB Brasil, the total ad spend for Internet in Brazil in 2012 was R$ 4.5 billion (US$2.25 billion). This figure takes into account both search/classified (R$2.7 billion or US$1.35 billion) and display/social media advertising (R$1.8 billion or US$900 million).

When using IAB Brasil’s total of R$4.5 billion for Internet ad spend and the overall figure of
R$ 30 billion (US$15 billion) in Brazilian ad spend for 2012, online’s share of ad spend is 11.8%. This edges out newspapers’ share of 11.2% and clearly surpasses the shares of the other forms of media except free TV, which had 64.7% of 2012 ad spend.

Going forward, IAB Brasil projects that in 2013 online ad spend in Brazil will increase by another 31.8% to reach R$6 billion (US$3 billion).

To find out how we can help you reach Brazil via any other type of media, please contact us.

About Luciano Rodrigues@USMediaConsulting.com

Luciano Rodrigues is Digital Ad Sales Manager for US Media Consulting and based in Sao Paulo, Brasil.

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