Tag Archives: Brazil ad spend 2011

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Latin America: The World’s Fastest-Growing Ad Market

Recently we noted the positive growth that both eMarketer and MagnaGlobal projected for ad spend in Latin America. Zenith Optimedia has joined these two sources with its own strong projections for the region.

Zenith Optimedia predicts that in 2013, Latin America will grow by 10.1% in ad spend, which is more than any other region in the world and nearly three times the rate of growth of the United States (3.6%) and double the rate of growth of the entire world (4.6%).

In terms of specific figures, Zenith Optimedia forecasts that 2013 ad spend in Latin America will reach nearly US$42 billion and then grow another 8.7% in 2014 to total US$45.6 billion.

Of course, these are projections. To get a sense of how accurate these projections may be, we researched actual ad spend figures for Latin American markets for 2012. Here’s a look at what we found.

Argentina
According to the Cámara Argentina de Agencias de Medios, ad spend value seems to have increased in Argentina during the first half of 2012. Overall, the ad spend value is up by nearly 20% compared to 2011, with the biggest increases in Internet ad spend (56%), radio (47%), newspapers (35%), pay TV (29%) and newspapers in the capital (22%)

Brazil
According to Projeto Inter-Meios, in Brazil ad spend in the first half of 2012 increased by 11% compared to the first half of 2011 to reach 14 billion reais (US$6.8 billion). Free TV continues to dominate the Brazilian ad market, commanding nearly 65% of the ad spend and growing by 13% compared to the first 6 months of 2011. However, the two forms of media that grew the most in the first half of 2012 in Brazil were Internet and pay TV, each of which registered growth of 18% in this period. It’s also interesting to note that Brazilian newspapers grew by 4% in ad spend during the first half of 2012.

Colombia
Overall ad spend grew by 5% in Colombia during the first half of 2012, according to figures from Asomedios, Andiarios and IAB Colombia. The total reported by these organizations —which reflects ad spend in regional and local TV, magazines, newspapers, national TV, radio and Internet— is one trillion Colombian pesos, which is about US$555 million. During the first half of 2012 Internet grew the most of all Colombian media in ad spend: 12%. However, national TV still commanded the largest share of ad spend, with 45.8%, followed by newspapers (21%), radio (20%) and magazines (4.5%).

More Markets
While we could not find 2012 ad spend numbers for other Latin American markets, the figures from last year suggest that Zenith Optimedia’s positive projections make sense. For example, in 2011 ad spend grew by 11.9% in Mexico, by 10% in Chile, by 16% in Peru, by 6.5% in Ecuador, by 7.% in Uruguay and by 7.8% in Venezuela.
As such, it’s likely that we’ll be reporting strong 2012 ad spend figures for all of these markets during the first quarter of 2013.

To explore how we can help you reach Latin America’s growing consumer market through a campaign in any type of media, please contact us.

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Latin America’s Ad Spend Is Set to Skyrocket

According to projections from e-Marketer, between 2012 and 2016, Latin America will be one of the world’s fastest-growing regions when it comes to ad spend.

Total ad spend for Latin America is projected to reach US$34 billion in 2012 and grow to US$51 billion by 2016, 50% growth. In terms of rate of growth, Latin America and Asia-Pacific will grow the fastest in ad spend between 2012 and 2016.

E-marketer also notes that online ad spend will spike in all of the world’s markets, particularly in China, which is set to become the world’s #2 market in online ad spend by 2014. Latin America is set to register $3.62 billion in online ad spend in 2012. By 2016, Latin America’s online ad spend will be $7.68 billion, a 112% increase in just 4 years.

These numbers seem to be in line with those from other sources. For example, eMarketer projects 11.8% growth in ad spend for Latin America during 2012, while recently MagnaGlobal projected 13% growth for this year. In addition, a variety of sources have noted increases in ad spend and online ad spend in Latin America.

To get a sense of the growth trend, here’s a look at ad spend and online spend figures for major markets in Latin America in 2011.

• Argentina: 31.6% growth in overall ad spend in 2011, 117% growth in online ad spend for 2011
• Brazil: 8.5% growth in overall ad spend in 2011, 20% growth in online ad spend in 2011, 39% projected growth in online ad spend for 2012
• Chile: 10.4% increase in overall ad spend in 2011, 30% growth in online ad spend in 2011
• Colombia: 8.8% increase in overall ad spend in 2011, 33% increase in online ad spend
• Mexico: 36% increase in online ad spend in 2011
• Panama: 7.7% increase in overall ad spend in 2011
• Peru: 16% increase in overall ad spend in 2011, 37% increase in online ad spend in 2011
• Uruguay: 7% increase in overall ad spend in 2011, 50% increase in online ad spend in 2011
• Venezuela: 7.8% increase in overall ad spend in 2011

To find out how we can help you reach Latin America via a strategic campaign in any form of media, please contact us.

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Brazil’s Hottest Advertising Media

For years, the story from Brazil has been about explosive growth, and 2011 was no different, especially when it came to media. We took a look at a couple of top sources to get a sense of that growth.
Here’s where the media money went, who provided it, how much different media are growing and which media brands in Brazil are the most popular.


Major Money in Media

IBOPE reports that in 2011, total ad spend in Brazil went up 16% to top 88.3 billion reales (US$51 billion). This was less than Brazil’s 19% growth in ad spend in 2010 but still significant.


Online Heats Up Hugely

Both IBOPE and IAB Brasil report that 5.3 billion reales (US$3 billion) was the total ad spend for online in 2011. That’s a huge 69% increase compared to 2010, during which advertisers spent 3.1 billion reales for online advertising. According to IAB Brasil, in 2011 online made up 10% of Brazil’s overall ad spend. Internet ads are also split down the middle in terms of type: 50% of Brazil’s 2011 online ad spend went to search and the other 50% was for display. All of this money moving has clearly attracted big Internet brands to Brazil. LinkedIn opened an office there in September 2011, joining Netflix, Google, Facebook and Yahoo, which are competing with native Brazilian online brands like UOL, iG and Globo.com.


TV Still Looks Good

Not surprisingly, free TV remains the top medium in Brazil in terms of ad spend. IBOPE’s numbers say it commands 53% of the total spend, while pay TV got around 7.2 percent. Big numbers, but slightly less than in previous years. For example, GroupM reported that TV received 64.6% of total ad spend in Brazil in 2010. The lower numbers for 2011 are due to online’s rise and print’s strength in Brazil.


Print Still Has Plenty of Power

IBOPE reported that newspapers brought in 17 billion reales (US$9.8 billion) in 2011 and were #2 in ad spend in Brazil. As a category, Brazilian magazines were slightly behind pay TV in ad spend, with 7.2 billion reales (US$4 billion).
In addition, the Instituto Verificador de Circulação or IVC—which tracks print circulation and revenue in the country—reports that Brazilian newspapers gained 3.5% in circulation in 2011.
Brazilian magazine also broke records in 2011. The IVC reported that the average circulation for magazines in Brazil reached 13,735,919 copies between June 2010 and June 2011, a record amount and a 5% increase compared to the previous period studied, June 2009 to June 2010. The top-selling newspaper in Brasil in 2011 was Super Notícia, a tabloid-style paper which sold 300,000 copies a day. In second place was Folha, with 297,000 copies sold daily.


Best-Liked Brands
Recently, Troiano Consultoria de Marca collaborated with Meio&Mensagem to survey Brazilians about the media brands they most admire. Here’s a quick breakdown:

  • Free TV network: TV Globo
  • Pay TV channel: GNT, which is from the Globosat cable network
  • Magazine: Veja
  • Radio network: CBN
  • Internet portal: Google


Top Advertisers

According to IBOPE, the 5 biggest advertisers in Brazil in 2011 were:

  • Casas Bahia—3.3 billion reales
  • Unilever Brasil—2.6 billion reales
  • Ambev—1.3 billion reales
  • Reckitt Beckiser—1.1 billion reales
  • Hyundai Caoa—1.0 billion reales

Among the other big spenders in Brazil in 2011 were Fiat, Petrobras, Volkswagen, General Motors and Ford.

To find out how we can help you reach the Brazilian market with an innovative media campaign, please contact us at info@usmediaconsulting.com.

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Brazil Has the #6 Economy in the World

The day after Christmas 2011, Brazil received an unexpected present: the Centre for Economics and Business Research (CEBR) proclaimed it the world’s sixth largest economy.
With this ranking, Brazil moved ahead of the United Kingdom but still trails France, the United States and other economic superpowers. Part of the drive forward is due to the economy’s 7.5% growth in 2010 and 3.5% growth in 2011.
For marketing, advertising and media professionals, Brazil’s economic growth has meant more consumers and an ever-expanding media market. Here’s a quick-reference look at the impact of more money on media in Brazil:

Pay TV. In late 2011 Brazil had more than 12.2 million households subscribing to pay TV. But this medium is no longer a luxury restricted to the upper AB classes: pay TV now has 31% penetration in Brazil’s surging Class C. And class C isn’t signing up just for TV: an Ipsos survey in 2011 showed that 33% of new combo packages (TV, Internet and phone) were sold to members of class C.

Internet. Two different projections say that 70-80% of Brazilians households will have Internet access by 2015. As of 2011 there were 67 million households in Brazil, which means at least 46.9 million households will have Internet access. The average household in Brazil has 3 people, meaning that Brazil could go from 78 million Internet users in 2011 to 140 million in just 4 years.

Print. Newspaper circulation in Brazil went up 4% between the first 6 months of 2010 and the same period in 2011 to hit 4.4 million, a new record. Brazil’s magazines set another record in 2011 by taking in nearly $1.3 billion in revenues.

Not all of the final tallies for Brazilian media numbers for 2011 are in yet, but it’s clear that that trend is headed upwards for the near future.

To find out how we can help you reach Brazil with a targeted media campaign, please contact us at info@usmediaconsulting.com.
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