The digital advertising market in Brazil continues to expand strongly. According to the latest study Digital AdSpend 2025, conducted by IAB Brasil in partnership with Kantar Ibope Media, investments in digital media reached R$ 37.9 billion in 2024, a growth of 8% compared to the previous year and an increase of 60% since 2020.
Social networks remain the primary destination for investments, with 53% of the total, followed by search tool ads (28%) and portals (19%). The commerce sector led the investments with nearly 20% of the total, followed by consumer services (10.9%) and electronics/computing (6.7%).
Another indicator of transformation in the digital ecosystem was the arrival of TikTok Shop in Brazil, in May 2025. The new feature allows integrated shopping with platform videos and has already gathered around a thousand sellers in the country since its launch. Analysts estimate that TikTok Shop could reach between 5% and 9% of Brazilian e-commerce by 2028, with sales volumes between R$ 25 and R$ 39 billion.
This combination of investment growth and platform revolution makes the digital environment highly competitive. In this context, Rafael Magdalena, director of US Media Performance, listed 8 essential tips— 4 for advertisers and 4 for agencies — to navigate more efficiently and generate real impact in digital.
For advertisers
1) Smart budgeting
Defining the ideal budget involves having an attribution model adjusted to the advertiser’s reality, considering different approaches such as last click, multi-touch and marketing mix modeling, attribution models used to understand the impact of channels on conversion. This will help identify saturation points and the representativeness of each channel, while also allowing room for experimentation. The synergy between awareness and performance strategies should also be considered to maximize ROI and avoid distortions in analysis.
2) Engaging video
Creating effective videos depends on adapting the format, message, and dynamics to the audience and platform. ‘Social media videos have distinct consumption behaviors compared to formats like pre-roll or mid-roll, requiring specific scripting for content with or without skip options. There’s no one-size-fits-all: long or short videos can perform differently, and success depends on strategy, channel, and experimentation,’ says Magdalena.
3) Effective measurement
Metrics should reflect the company’s primary objective. For brand awareness, CAC (customer acquisition cost), ROI (return on investment), and ROAS (return on ad spend) are not the most suitable. For sales, CAC by channel and ROAS are daily priorities. Incrementality is important in testing and experimentation but requires well-defined attribution models to avoid distorted results, as a channel can impact performance even without direct conversion (last click).
4) Multichannel integration
Unifying the experience is a major challenge that should start with the advertiser; without this, the journey will hardly be smooth. Using ROX (return on experience)—more holistic than ROI (return on investment)—allows evaluating multichannel impact (online, physical, customer service, financial), helping retain customers, increase revenue, and reduce CAC (customer acquisition cost). There’s no point in having an award-winning campaign if the experience is poor and churn (customer loss) is high.
For agencies
1) Market differentiation
Standing out requires aligning the company’s value proposition to the specific needs of the client. ‘It’s necessary to find a balance between specialization and a broad service offering, leveraging consultancies, partners, and bureaus to complement delivery and avoid limitations in specific challenges,’ adds the expert.
2) Data and competitive intelligence
With artificial intelligence facilitating automation, compiling data and monitoring competition (clipping, IR—institutional relations) has become more agile, but it requires a team that understands the business and the market. A BI (business intelligence) team with technical expertise isn’t enough; client and contextual understanding are essential.
Data and competitive intelligence should be integrated across all areas—media, planning, and creation—as these fronts directly impact results. The use of A/B testing, neuroscience, and AI to optimize creatives is increasingly common, and media professionals must reclaim their analytical role to avoid biased planning.
3) Creativity and video innovation
Investing in high-tech solutions is pointless if the audience or medium doesn’t support it. Often, less is more. Immersive or interactive solutions can generate higher retention in experiences like in-gaming, while pre-rolls and mid-rolls require focus on capturing attention without excess, to avoid seeming forced. The audience is more skeptical, and excess can repel rather than engage.
4) Strategic partnerships
Strategic partnerships are even more important today, given market complexity and the diversity of channels and solutions. ‘Partners help tackle challenges, regain audience attention, and choose the best channel for the message. Agencies should diversify, test new mediums, and avoid one-size-fits-all solutions, as clients will seek alternatives if the media plan is simplistic in a scenario where creative and implementation processes are increasingly automated,’ concludes the director of US Media Performance.
