Tag Archives: media growth

Brazil garners attention for ad spending

As increasing attention in global marketing is being focused on the Latin American market, Brazil, sitting at the #6 economy in the world, has shown particularly astronomical increases in media growth and ad spend, with 2012 projected to surpass all existing bench markers.

IBOPE reports that in 2011, total ad spend in Brazil went up 16% to top 88.3 reales, the US equivalent of $51 billion, an increase of about 8% from 2010.

Leading the pack in terms of ad spend was free TV, with about 53% of total spend. Meanwhile, while pay TV has grown 118% since 2008 (the audience is currently 40 million strong), ad spend is only about 7%. Total TV spend is down a few percent from 2010, as heavier emphasis has been placed on digital.

Both IBOPE and IAB Brasil report that 5.3 billion reales (US $3 billion) was the total ad spend for online in 2011. This is a significant 69% increase compared to 2010, during which advertisers spent 3.1 billion reales for online advertising.  Interestingly, 50% of Brazil’s 2011 online ad spend went to search and the other 50% was for display.

As a result of increased digital spend and activity, heavy-hitting American brands have opened up shop in Brazil— Netflix, Google, Facebook and Yahoo, to name a few. These companies now compete with top Brazilian brands like UOL, iG and Globo.com.  Still, 75% of the page views in Brazil are generated by just 7 Web sites: AOL, Earth, iG, Globo.com, Google (including search, YouTube and Orkut), Microsoft Live and Yahoo. Additionally, 31.1 million Brazilians visit e-commerce sites every month; coupon sites alone grew 379% in visitors between May 2010 and May 2011.

Sitting at a surprising number two in ad spend in Brazil in 2011 was newspaper, while magazines ended up slightly behind pay TV.

From a consumption standpoint, newspaper circulation yielded a 3.5% increase in circulation and a 7% increase in subscription since 2010. In fact, 11% of the Brazilian population reads the newspaper every day. Meanwhile, magazines subscriptions were up 5% year over year, and subscriptions doubled!

The following is a survey of media outlets Brazilians most admire:

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