Tag Archives: online ad spend Brazil

Economy

Ad Spend Stays Strong in Brazil in 2012

According to Projeto Inter-Meios, ad spend in Brazil went up by nearly 6% in 2012 to reach around R$ 38 billion (US$19 billion). When you factor in the amount spent on generating creative, overall investment in Brazil goes to R$ 45 billion (US$22.6 billion). According to ad industry publication Meio e Mensagem, this places Brazil among the world’s top 5 advertising markets.

While this was not as much growth as in 2011 (8.5%), it still is significant and speaks to the health of Brazil’s economy and ad industry. Forecasts for 2013 suggest that ad spend could grow by nearly 10% in Brazil this year.

Below we break down the ad spend in Brazil for 2012, showing each’s medium’s share. One thing to note is that Projeto Inter-Meios only counts display advertising for Internet, not search. As such, the share of ad spend from Internet in Brazil is probably significantly higher than presented below. In fact, IAB Brasil estimated that online ad spend in Brazil would reach 13.7% of total ad spend in 2012. When IAB Brasil releases its next update later this month, we’ll know for sure if this indeed is the case.

Brazil’s Ad Spend by Medium, 2012

To find out how we can help you reach affluent people or any other type of market segment in Latin America via any type of media, please contact us.

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online ad spend

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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