Sandra Martinelli also talks about market growth, ESG, artificial intelligence and the entity’s role in the sector
ABA (Brazilian Association of Advertisers) completes 65 years as the only entity that brings together advertisers in the country, today representing more than 1,400 brands. CEO Sandra Martinelli brings reflections on the advertising market, such as the fact that, today, brands understand that marketing can no longer be detached from reality and advertising is only transactional.
The executive also talks about market growth, ESG, artificial intelligence and the entity’s role in the sector. “We act strongly in favor of freedom of expression and self-regulation and we believe in collective construction to seek solutions to the dilemmas of a world in constant transformation”. In the following interview, she also talks about ABA’s anniversary celebrations and the launches they will make this year.
How are the expectations of the marketing market this year?
The marketing market is growing and investments in advertising are expected to increase 8.2% this year and, for the first time, surpass the US$ 1 trillion mark, according to the report ‘The voice of the marketer 2024 ‘, by Warc. As in recent years, digital will continue to be the protagonist of this growth and, mainly, in Brazil, since the Brazilian population is the second one that spends the most time connected – an average of 9 hours a day – and the third one that uses social networks the most in the world (Comscore). Approximately 80% of CMOs plan to increase investments in artificial intelligence and data in 2024 (Accenture). Furthermore, data-based decision making is essential in this scenario of technological and cultural transformation, but we will see this year how brands will adapt to the end of cookies, and whether platform solutions are being efficient. CMOs will seek even more focus on innovation given the speed with which changes are happening. Changing consumer behavior and innovation involves balancing the use of technological tools, such as, for example, benefiting from generative AI, without losing the human capacity to be creative and take risks. A culture of continuous learning is needed. This year, we also have the Olympics and again many music festivals, which brands are taking great advantage of with activations to connect with the public. There are many opportunities for advertisers and CMOs need to be attentive and prepared to know how to take advantage of them very well.
What are the trends for the sector?
Compiling the main global trends highlighted by WFA – World Federation of Advertisers -, Kantar, Amazon Ads and NRF, among others, we can say that artificial intelligence continues to be at the top of brands’ strategies, with different focuses, from improving and simplifying creative processes , as bringing more efficiency, with solutions to optimize costs, increase sales and improve customers’ shopping experience. In digital, we will see investments continue in social media, online video and mobile devices. Online communities and influencers will continue to impact purchasing decisions, but there will be a greater demand for responsibility from brands, and this ranges from the choice of partners, influencers and media platforms with whom they will work, to control and recommendation more rigorous content, especially for children and teenagers, new measures to protect brands that guarantee more transparency, and ethical safety and responsibility also in the use of AI, with its regulation being the focus this year. Eyes will also turn more to streaming ads. According to Amazon ads, not only big brands, but small ones will also invest in connected TVs as they offer creative opportunities that go far beyond linear TV, to engage the public, such as interactions and ease of purchasing products. Retail media is another trend that is expected to grow exponentially, with brands investing in advertising activations at the point of sale.
What about ESG practices?
ESG is a constant issue year after year, but it still needs to be worked on by companies. For WFA, it is necessary to transform commitments and promises into actions again and sustainability must become a new currency and KPI. In Brazil, 56% of consumers stopped purchasing products and services from companies that do not invest in sustainability or impact the planet, according to research by Kantar. This has become a determining factor in consumption decisions, but consumers are also aware of brands that practice “greenwashing”. Diversity, equity and inclusion are also included in this demand, both from consumers and stakeholders. Another trend is to have authenticity, transparency and well-defined purposes to reinforce cultural values, positions on social and environmental issues in a way consistent with the DNA of each brand, and communicate in a more human way to, thus, build emotional connection with consumers.
What are the strategic themes worked on by the entity?
The ABA remains aligned with the WFA, a global entity that represents advertisers and to which we are affiliated, and I have served as a member of its executive committee for nine years. Therefore, our work is focused on the triangle: advocacy, connection&knowledge and international relations (WFA). We are always updating our strategic agenda according to market evolution and, in recent years, we have included within this pillar, themes that have gained strength in digital transformation, which go beyond marketing&communication and media, such as AI, data, brand safety, LGPD, ESG and retail media, which guide current marketing.
Read the full interview in the edition of propmark April 15, 2024
