Annually, IAB Brazil and Kantar Ibope Media join forces to present updated perspectives on the digital media landscape in the country. In 2023, The Digital AdSpend Report once again confirms the unanimous sentiment that we are experiencing a moment of expansion, acceleration and innovation in the projects of the area. According to the study, the amount allocated to digital advertising in Brazil last year increased by 8%, surpassing the mark of R$ 35 billion
This evolution is explained and driven mainly by the need for companies to diversify their advertising investments, avoiding the saturation of traditional platforms, like Google and Meta. Brands are increasingly aware of the importance of a strategic and diversified approach in their media campaigns, seeking to reach broad audiences in a more qualified way. This is because diversification allows companies to reduce associated risks and dependence on a single channel, providing a more balanced and effective return on advertising spend (ROAS)
A relevant point to consider is the risk of excessive dependence on a single large media player. The recent ban of TikTok in the US illustrates this issue well. Without delving into the legal and political merits of the situation, one aspect draws attention for addressing a fundamental question for the digital advertising market in Latin America: how risky it can be to anchor a media plan to a single major player
This high level of dependence ends up creating an extremely dangerous relationship of unpredictability, from a strategic and economic point of view. It is no wonder that many advertising agencies and advertisers are concerned about what is happening. And this is not a situation exclusive to TikTok. Today, the eyes are on this publisher, but tomorrow, for other reasons, this same dilemma can apply to another giant. When will there be a price increase? When will there be a change in the algorithm? When will the government force the division of these companies? The unpredictability is precisely in this sense
I cite a few examples: in 2017, there was a situation of lack of "brand safety" with YouTube. Already in 2021, there was another situation of hate speech and "fake news" with Meta. In both cases, advertisers were forced to stop advertising on these platforms and change their strategies without prior notice. I genuinely believe that diversifying advertising investment is the best antidote to avoid these risks. As the saying goes: "don't put all your eggs in one basket"
Today, Brazil stands out in Latin America for its rapid and effective adoption of new digital platforms. Compared to other markets in the region, the country shows a remarkable evolution, consolidating itself as a leader in innovation when it comes to digital media. However, this is far from meaning that we cannot move further in this direction
After all, diversifying media investments means reaching even broader and more engaged audiences, this is a fundamental process to adapt actions to changes in consumer behavior and take advantage of new opportunities offered by the digital market. Choosing diversification avoids problems such as audience saturation and redundancy, resulting in a communication that is constantly relevant for different consumer profiles
A world of new possibilities
That's why, media players need to be committed to offering an increasingly extensive range of services and solutions, that accompany this movement of seeking new approaches and that meet the specific needs of each client's sector. The result of this process will be more balanced and assertive marketing strategies, promoting better results in all indicators. Diversification also allows for greater flexibility to test and adjust campaigns in real time, maximizing the impact and efficiency of advertising actions at all times
Sectors that already invest between 30% and 50% in digital media, like the automotive, beauty and finance, they need strategies that offer highly segmented and relevant content, ensuring greater engagement and return on investment. As for those who still allocate less than 30% of their budgets, how the health sectors, construction and public administration, the opportunity lies in exploring new forms of communication and creating well-structured campaigns that reach the target audience more effectively
The diversification of channels, in addition to avoiding excessive dependence on traditional media, broadens the resilience of marketing strategies and opens up a range of possibilities to innovate and discover new ways to engage the audience
Promising scenario
Digital media in Brazil promises robust growth in the coming years, with agencies and advertisers adopting strategic approaches to media investments. With the popularization of new platforms and technologies, how Connected TV (CTV) and artificial intelligence, advertising will become more present in our daily lives. The challenge will be to balance personalization and privacy, offering relevant experiences without compromising users' personal data. Furthermore, it will be crucial to monitor consumer preferences, that are increasingly demanding and informed
In summary, the advertising market in Brazil will need to be increasingly strategic when investing in media, considering emerging platforms and technologies. The diversification of advertising is a trend that will increasingly integrate into the everyday tools of consumers. Brands and agencies that embrace this change and invest intelligently in digital media will have an important competitive advantage, driving its growth and consolidating its position in the market
