According to Magna research, media investments increased 12.2% last year, reaching R$81 billion
In 2023, the advertising market grew by 12.2%, reaching a total revenue of R$81.8 billion (US$16 billion). The data comes from research by IPG Mediabrands carried out through its business unit specialized in media intelligence and investment, Magna. The result positions Brazil as the ninth largest advertising market in the world.
The growth indicated by IPG Mediabrands is greater than that measured by Cenp-Meios, which was 10.4% last year, with a media investment value of R$23.4 billion.
“The Cenp measurement results in the sum of the investment that goes through two media buying systems in some agencies in Brazil. It is a very useful and important method for some things, but it does not give the dimension of the market and investment as a whole. Furthermore, its criteria are different from ours in terms of classifying media and purchasing formats”, explains João Dabbur, general director of Magna – Mediabrands Brasil.
Magna’s survey in Brazil uses a composition of public data, purchased research and market intelligence to “arrive at a broader view of total communications investment in Brazil.”
According to the research, digital advertising has solidified its position in the advertising pie, accounting for 55% of the total budget in 2023, a significant increase from 21% in 2015. Digital advertising revenue reached R$44.7 billion (US$8.7 billion), marking an annual growth of 13.9%. In contrast, TV, which accounted for 60% of the budget in 2015, fell to 33% in 2023, as audiences migrate to digital and streaming platforms.
Print and radio media formats also saw a reduction, from 11% to 2%, with radio maintaining a 2% share. Out-of-home (OOH) advertising accounted for 8% of advertising budgets.
“After the political and economic uncertainty of 2022, 2023 saw a recovery in growth and consumption; we saw part of this reflected in advertising investment. Where we identified the greatest positive variation in volume was in digital and outdoor media”, reports Dabbur, adding that the expectation for 2024 is similar to what we saw in growth in 2023, around 10%.
The retail sector leads the market, generating US$2.9 billion in advertising revenue. Advertisers such as Mercado Livre, Amazon and Unilever are competing fiercely for leadership in this sector. The media and entertainment sector is the second largest, with US$1.7 billion, followed by the financial sector, which generated US$1.1 billion.
In tourism, advertising grew 23% in 2023, driven by events such as Carnival, after two years of “pause” due to the pandemic. In contrast, sectors such as furniture and household appliances faced a 28% drop in the period.
