Largest media producer in Brazil, the Globo Comunicação e Participações (GCP) will end the year with rising revenue, cash on hand and plans to increase investments in 2022. According to preliminary data, total sales will have a growth of 17% to 19% this year, compared to 2020, with an increase in two basic sources of resources. In advertising, the main source of revenue and which traditionally accounts for 60% of business, the increase will be between 22% and 24%.
In turn, content revenue, responsible for the remaining 40%, will grow 8%. According to information from Valor Econômico, the forecasts are in line with the results of the third quarter, when net revenue totaled BRL 3.7 billion (growth of 19%), and of nine months, which recorded BRL 10.1 billion (increase of 18%).
“These are capital numbers that denote the confidence in our content on the part of both advertisers and consumers,” says Manuel Belmar, Globo’s general director of finance.
The growth in advertising revenue is due to the return of campaigns marketing, which were repressed because of the health crisis. However, the result also reflects Globo’s effort to present new commercial models.
“It is a set of facilities. We are looking for an ever closer relationship with the customer to understand their needs and transform them into business solutions.”
Recently, Globo launched the Globo Ads formats, which facilitate the purchase of advertising space by agencies and advertisers; Globo Sim, for small and medium-sized companies to advertise on the network’s affiliates; and Globo Impacto, which applies measurement criteria used on the internet to open TV campaigns.
According to Belmar, in the content area the highlight is Globoplay. Between September 2020 and 2021, Globoplay’s revenue increased 70%, with a 27% growth in the number of subscribers. The streaming platform is at the heart of the D2C strategy, or “direct to consumer”, adopted by the company to speak directly to the consumer.
“The digital world brings the possibility for the consumer to easily subscribe and cancel services. Therefore, the content has to be relevant”, he says.
Globo’s plan for 2022 is to reinforce the production of national content, with a 50% increase in investment compared to 2021. “We are going to bring new stories that Brazilians like to see and that Globo knows how to tell”, says Manuel Belmar. Globo will also continue investing in technology. “We are in the planning stage, but it is already possible to say that we are going to invest more in content”. In March of this year, Globo released its 2020 balance sheet and reported having earmarked R$4.5 billion for content creation and more than R$1 billion for the technology area.
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