In 2023, advertising showed an increase in investment for the fourth consecutive year, growing 8% and reaching the level of R$80 billion. This is what the material ‘Inside Advertising: What past and present indicate for the future of advertising’, April edition of Data Stories, thematic content released bimonthly by Kantar IBOPE Media.
One of the study’s main insights points out that, although most sectors showed positive movements, the two biggest percentage growths came from sectors that offer entertainment. They are: Media and Content (+30%) and Culture, Leisure, Sport and Tourism (+27%)
Even with the competition for consumers’ free time heating up advertising, five more traditional segments still concentrated 51% of the budget: Commerce (18%), Services (10%), Financial (9%), Media (7%) and Beauty ( 7%).
To retain consumer attention, the cross-media presence strategy, which uses several points of contact, was the main solution found by 10 most valuable brands from ‘Brand Z 2024’, research carried out by Kantar. In this scenario, companies used, on average, six of the seven advertising media.
Regarding location, the São Paulo-Rio axis leads the share among Brazilian cities, with 19% and 7%, respectively. Even so, increases of 10% or more were recorded in both the Southeast, the Northeast and the South, showing that growth in advertising interacts with various accents.
Projections for the future
The year 2024 brings promising scenarios for advertising. The ‘Marketing Trends’ survey, carried out by Kantar IBOPE Media in partnership with Meio & Mensagem, shows that more than 90% of CMOs intend to invest the same or more than last year. The same study also shows that, among marketing leaders, 43% will invest more in Connected TV (CTV), 60% will invest more in video as a whole and 55% say that the biggest point of attention of the year will be the unification of metrics about the cross-media journey to optimize investments.
Projection points to volume of investment in media via advertising agencies at R$57 billion in 2023
Cenp (Advertising Market Self-Regulation Forum) supported by Kantar IBOPE Media carried out an unprecedented projection on media investments in the Brazilian advertising market made via advertising agencies. The new reading indicates a volume of R$57.5 billion moved by this industry throughout 2023. The ‘Projection of Investments in Media via Advertising Agencies’ panel takes into account the strengths of each basis of comparison when analyzing investments : the technical rigor and depth of Cenp-Meios with the national coverage and capillarity of Kantar IBOPE Media’s Advertising Investment base.
The methodology for projecting agencies’ investments was developed by Cenp consultant Marcelo Coutinho, professor at EAESP-FGV and former director of Analysis Services at IBOPE NetRatings and Market Intelligence at Terra-Telefônica. The premise for the initial development of this projection was to work only with the investment made via advertising agencies and with data already accepted by the market.
“We arrived at the total through a combination of Cenp-Meios results, obtained through the insertion order system (PIs) of 336 advertising agencies (consolidated data base from 2023) in the media, with special tabulations from Kantar IBOPE Media, which cover what is broadcast by around four thousand agencies that exist in Brazil”, explains Coutinho.
To calculate the total amount, separate tabulations were made, based on the placements accounted for by Kantar IBOPE Media’s Advertising Investment base, of the gross values (list prices) covering only the agencies that are part of Cenp-Meios on the one hand; and, on the other, the other agencies. This tabulation demonstrated that the agencies that are part of Cenp-Meios are responsible for 49.5% of the gross investment, compared to 50.5% for the other agencies. In this way, the same proportion between the investment registered by Cenp-Meios and the gross revenue of these 336 agencies in the Kantar IBOPE Media database was applied to the others.
The projection did not take into account the direct investment made by advertisers in the media without going through advertising agencies.
We were careful to project the result by medium, as we know that some campaign negotiations involve different media and making a simple comparison of the agencies’ average discount for all media could increase possible distortions”, highlights the Cenp consultant.
According to Marcelo Coutinho, as this is data that comes directly from the agencies’ billing systems to the Cenp-Meios base, which recently underwent verification by KPMG, which ensured its fidelity, it is a reasonable assumption to apply the same proportion verified between the revenue of Cenp-Meios agencies in the Kantar IBOPE Media base on agencies that, although not part of the Cenp-Meios system, also have their broadcasts monitored by Kantar IBOPE Media.
“This is an extrapolation that has as its starting point data from Cenp-Meios, whose origin is quite reliable, functioning as a ‘census’, which is the investment in media of these 336 agencies, which represents almost half of the volume total, about the other half of this volume”, said Coutinho.
Coutinho notes that there is still a lot to be improved with the development of seasonal indicators, trend projections and greater data granularity, for example with regional analyses. It also highlights the complexity of measuring the Internet. Thus, in order not to deviate from the basic principle that was the use of indicators already established by the market, in the case of the Internet, data from Kantar IBOPE Media, endorsed by the IAB, was used, that 67% of everything that was invested in the digital environment was via agencies.
Luiz Lara, president of Cenp, highlights the importance of the initiative and its potential for improvement so that the market has, over time, data that takes into account its real dimension.
“This is the first brick in a long construction to arrive at a closer assessment of the reality of the amount of investment in media made by agencies, at the same time that we have to monitor the evolution of the media and their uses by consumers”, concluded Lara.
Follow Adnews on Instagram e LinkedIn. #WhereTransformationHappens
