In Brazil, media buying will grow almost 9%

Advertising investment in Brazil is expected to grow by almost 9% in 2020, according to the most recent survey "Global Ad Spend Forecasts", by the DAN group, which takes into account investment reports in 59 countries. The growth projection for the country, 8.9%, is higher than the global average, 3.9%, and slightly lower than the average for Latin America, 9.5%. Globally, investment in advertising is expected to generate US $ 615 billion.

Advertising will be driven mainly by events such as the Tokyo Olympics and Paralympics, the UEFA Champions League, presidential elections in the United States and municipal elections in Brazil. The DAN group projects that the Olympic Games, in particular, will have an effect on advertising investment in the country. “Ad scheduling may change due to time zone differences, with many finals planned for the prime-time”, previews Eduardo Bicudo, CEO of the DAN group in Brazil.

Like other neighboring countries and markets in Asia-Pacific, Brazil is seeing an acceleration of investment in digital formats, more consolidated in developed markets. The bet on mobile formats will increase by 8.8% this year. Currently, mobile ads represent 67% of the total digital investment in Brazil. “Constant investments to improve the user experience on mobile devices, with more user-friendly interfaces and voice activation features, drive the increase in this medium”, justifies Eduardo.

The adhesion of voice activations and personal assistants such as Siri, Google Assistant and Alexa also encourage greater efforts by advertisers on mobile devices, although they pose greater challenges from a planning point of view. “Brands must keep in mind that preparing for voice search is different from searching via text. Voice search shows less results, and therefore needs more adaptation from advertisers, ”says the CEO.

Considering all the countries surveyed, digital advertising is expected to grow 10% this year - representing 45% of advertisers' investment. In 2021, digital is expected to represent 50% of this total. Within this category, mobile and video stand out, with a projection of 16% and 14% growth in 2020, respectively.

Television, for its part, is expected to maintain about a third (31.5%) of the share in global advertising investments, growing 0.6% this year. In Brazil, however, investment is expected to grow up to 9.5%, motivated by municipal elections, global events and the arrival of a new open channel, CNN Brasil.

DAN also predicts an increase in investment in programmatic ads, including in more traditional media such as TV and radio. “There is a huge space for programmatic growth in Brazil, and the trend is for it to migrate to other media,” says Bicudo.

The study still makes initial projections for 2021. Next year, the pace of investment should be slower, with projections for growth of 3.4% in Brazil.