Annually, IAB Brazil and Kantar Ibope Media come together to present updated perspectives on the digital media landscape in the country. In 2023, the Digital AdSpend Report once again confirms the unanimous feeling that we are experiencing a moment of expansion, acceleration, and innovation in the field projects. According to the study, the amount allocated to digital advertising in Brazil last year increased by 8%, surpassing the R$ 35 billion mark.
This evolution is explained and driven mainly by companies’ need 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 manner. This is because diversification allows companies to reduce associated risks and the dependency on a single channel, providing a more balanced and effective return on advertising investment (ROAS).
One relevant point to consider is the risk of excessive dependence on a single major media player. The recent banning of TikTok in the US illustrates this issue well. Without delving into the legal and political merits of the situation, one aspect stands out by addressing a fundamental question for the digital advertising market in Latin America: how risky can anchoring a media plan to a single major player be?
This high level of dependence ends up generating a relationship of extreme unpredictability, from a strategic and economic point of view. It’s no wonder that many advertising agencies and advertisers are concerned about what’s happening. And this is not a situation exclusive to TikTok. Today, the focus is on this publisher, but tomorrow, for other reasons, this same dilemma may apply to another giant. When will there be a price increase? When will there be a change in algorithm? When will the government force the division of these companies? Unpredictability is precisely in this sense.
I cite some examples: in 2017, there was a lack of brand safety situation with YouTube. 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 diversification of 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 the rapid and effective adoption of new digital platforms. Compared to other markets in the region, the country demonstrates a remarkable evolution, establishing itself as a leader in innovation when it comes to digital media. However, this does not mean that we cannot advance further in this direction.
Until because, diversifying media investments means reaching even broader and more engaged audiences, which is a fundamental process to adapt actions to changes in consumer behavior and take advantage of new opportunities offered by the digital market. Opting for diversification avoids issues such as audience saturation and redundancy, resulting in communication that is constantly relevant to different consumer profiles.
A world of new possibilities
Therefore, media players need to be committed to offering an increasingly extensive range of services and solutions that follow this trend of seeking new approaches and meeting the specific needs of each client 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, such as automotive, beauty, and finance, need strategies that offer highly segmented and relevant content, ensuring greater engagement and return on investment. For those who still allocate less than 30% of their budgets, such as the health, construction, and public administration sectors, the opportunity lies in exploring new communication methods and creating well-structured campaigns that target the audience more effectively.
Diversifying channels, in addition to avoiding excessive dependence on traditional media, enhances 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 strong growth in the coming years, with agencies and advertisers adopting strategic approaches to media investments. With the popularization of new platforms and technologies, such as 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. Additionally, it will be crucial to keep up with consumer preferences, who are becoming 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 consumers’ everyday tools. Brands and agencies that embrace this change and invest intelligently in digital media will have an important competitive edge, driving their growth and consolidating their position in the market.
