Tag Archives: Brazil online ad spend

Ad Spend in Brazil to rise by 10% in 2013

According to Warc, a global marketing information service, ad spend in Brazil will increase by 9.8% in 2013, growing by another 12% in 2014.

Warc published this projection as part of its Consensus Ad Forecast report. The sharp increase for Brazil is significantly higher than the increase in global ad spend, which Warc predicts will be 4% in 2013. Brazil’s projected 2013 growth in ad spend is less than that of Russia (12.3%), but higher than that of China (10.9%) and of the United States (2.2%). In 2014, Warc projects that Brazil will lead the world in ad spend, with growth of 12.1%.

Growth in Different Forms of Media
According to Warc’s forecast, Internet ad spend will grow by 20.5% in Brazil in 2013, while TV ad spend will grow by 10.3%, out of home ad spend will grow by 9%, radio ad spend by 6%, magazine ad spend by 3.9% and newspaper ad spend will grow by 5%. In fact, Brazil is one of only three countries in the world (along with Russia and India) in which newspapers will post growth in ad spend in the next two years: everywhere else, newspaper ad spend will contract by 2.7%, says Warc.

To explore how we can help you reach Brazil’s growing ad market, please contact us.

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Brazil’s Online Ad Spend to Grow by 40% in 2012

Advertisers have clearly realized the power of Brazil’s huge online audience: IAB Brasil’s Indicadores de Mercado report projects a growth of more than 39% in Internet advertising billing in 2012. IAB Brazil notes that overall billing for online advertising in Brazil in 2011 totaled 3.33 billion reales (US$1.6 billion) and predicts that it will grow to 4.6 billion reales (US$2.3 billion) in 2012.

IAB Brazil’s calculations take into account both display and search advertising. Other authorities tend to focus solely on display advertising, so sometimes you’ll see a different set of numbers for Brazil’s online ad spend.
It makes sense for IAB Brazil to include search in its calculations, especially since the organization reports that search makes up more than half of online advertising billing: in 2011, out of the 3.33 billion reales spent on Internet advertising in
Brazil, 1.88 billion went to search, or 54%.

In addition, the Indicadores de Mercado report projects that in 2012, Internet advertising will make up 13.7% of Brazil’s overall ad spend, up from the final figure of 11% listed for 2011. While online ad spend in Brazil is not quite at the level it is for other markets—such as the U.S., where online makes up 19% of the overall ad spend—this figure still marks some impressive gains. With comScore recently reporting that Brazil is #7 in the world in Internet users with 85 million, it makes sense that advertisers take advantage of the country’s rapidly growing online population.

And so far this year, this is exactly what they’re doing. Over 190 billion display ads were delivered to Brazil’s Internet population during the first quarter of 2012. A recent comScore press release reported these figures, which are from the company’s Ad Metrix service. In March 2012, Brazil’s top online display advertisers were Dafiti.com.br and Netshoes.com.br, with each delivering more than 2 billion impressions.

To find out how we can help you reach Brazil, Latin America or U.S. Hispanics via a strategic campaign across all media, please contact us at info@usmediaconsulting.com.

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Brazil’s Ad Market Grew by 8.5% in 2011

Figures just released by Projeto Inter-Meios show a total billing by the Brazilian ad industry of 39 billion reales ($US22.5 billion), with 28 billion reales (US$16 billion) corresponding to pure ad space sales.

In 2010, the industry billed 21 billion reales, growing 20% compared to 2009. Free TV is still the leader in ad spend in Brazil, capturing 63% of the total. Below is a quick breakdown:

Note that Projeto Inter-Meios shows Internet as having only 5.1% of total ad spend in Brazil, while IAB Brasil’s figures show online capturing 10% of ad spend. That may because of the way Internet ad spend is tallied. IAB Brasil brings together both search and display, since these components each make up 50% of the online ad spend in Brazil. Projeto Inter-Meios does not seem to make that distinction, hence the difference between the two organizations’ figures.

Despite this difference, Projeto Inter-Meios observed that Internet ad spend grew by nearly 20% in 2011, more than any other medium. Out-of-home in Brazil also posted impressive growth in 2011—it grew by 12%. Brazilian print media also grew well in ad spend in 2011: newspapers gained 3.8% and magazine ad spend went up by 3.5%. These strong print numbers match other recent statistics that show the medium is doing quite well in Brazil, unlike in other markets. According to Projeto Inter-Meios, the only Brazilian media to show drops in 2011 were cinema and guides.

To find out how we can help you reach Brazil via a strategic campaign across all media, please contact us at info@usmediaconsulting.com.

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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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Online Ad Spend Skyrockets All Over Latam

While other countries can’t boast Brazil’s doubling of online ad spend in 2011, they’re actually not that far behind.
It’s projected that Mexico will join Brazil in having its online ad spend reach 10% of the country’s overall ad spend in 2011. This marks an increase of 3% compared to 2010, when online’s share of total ad spend was at 7%. This surge comes on top of Mexico’s 35% growth in online ad spend between 2009 and 2010, when it reached 3.3 million pesos ($273 million).
While Mexico’s 35% increase in online ad spend is impressive, other Latam markets are also heating up in this area:

  • Argentina: 50% increase in online ad spend in 2010, 27% projected increase in 2011
  • Chile: 29% increase in online ad spend in 2010, 35% projected increase in 2011
  • Colombia: 56% increase in online ad spend in 2010, 40% projected increase in 2011
  • Peru: 44% increase in online ad spend in 2010, 40% projected increase in 2011
  • Uruguay: 40% increase in online ad spend in 2010, (no 2011 projections available yet)

Total online ad spend in Latin America is also on the way up. Zenith Optimedia projects that it will grow by 14.4% in 2011, 2012 and 2013.

Where the Money Is Going
In many countries, display banners still rule. They make up 70% of the digital ad spend in Chile, 83% of the digital ad spend in Colombia, 61% of the digital ad spend in Mexico and 50% of the digital ad spend in Argentina. Search advertising is relatively low in many Latin American countries when you consider how it dominates the online activities of many users. For example, a recent comScore study shows that as an activity search grew 34% in Brazil between March 2010 and March 2011. In the same period, it grew by 23% in Mexico, by 28% in Colombia and by 21% in Argentina.
Among the growth categories are social media (106% in Mexico in 2010) and online video. In fact, an IAB Uruguay study suggests that advertisers will spend more than 25% of their budgets on online video ads.

Factors Behind the Surge
Obviously, improved infrastructure has made a huge difference. The region’s hot economies are also playing a role. With better purchasing power, more people can connect by either buying computers or connecting via their smartphones. And in Brazil, LAN houses have opened up Internet access for class C consumers.
But beyond physical and economic factors, what’s important to note is the Internet’s role in purchasing decisions. comScore’s 2010 study on Latin American e-commerce reported that 97% of Argentine Internet users go online to research products before buying. The same pattern was found among users  in Brazil (87%), Mexico (91%), Chile (90%), Colombia (94%) and Peru (91%). This suggests strongly that advertising online to drive retail traffic is a strategy that will yield rewarding ROI.

To learn more about how we can help you reach the Latin American online market with a variety of premium media outlets, please contact us at info@usmediaconsulting.com.

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