The digital advertising market in Brazil continues to expand rapidly. According to the latest study Digital AdSpend 2025, conducted by IAB Brasil in partnership with Kantar Ibope Media, digital media investments reached R$ 37.9 billion in 2024, a growth of 8% compared to the previous year and an increase of 60% since 2020.
Social media remains the primary destination for investments, with 53% of the total, followed by search engine ads (28%) and portals (19%). The retail sector led the investments with nearly 20% of the total, followed by consumer services (10.9%) and electronics/IT (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 the platform’s 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 a sales volume 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 the digital space.
For advertisers
1) Smart budgeting
Setting the ideal budget requires an attribution model tailored to the advertiser’s reality, considering different approaches like last click, multi-touch and marketing mix modeling, attribution models used to understand each channel’s impact on conversion. This will help identify saturation points and the representativeness of each, while leaving room for experimentation. 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. ‘Videos on social media have distinct consumption behaviors compared to formats like pre-roll or mid-roll, requiring specific scripting for skippable or non-skippable content. There’s no one-size-fits-all approach: 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 goal. For brand awareness, CAC (customer acquisition cost), ROI (return on investment), and ROAS (return on ad spend) are not ideal. For sales, CAC per channel and ROAS are daily priorities. Incrementality is important for testing, but requires well-defined attribution models to avoid distorted results, as a channel can impact performance without generating direct conversions (last click).
4) Multi-channel integration
Unifying the experience is a major challenge that must 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 multi-channel 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 the churn (customer loss) is high.
For agencies
1) Market differentiation
Standing out requires aligning the company’s value proposition to the client’s specific needs. ‘It’s necessary to find a balance between specialization and a broad service offering, leveraging consultants, partners, and bureaus to complement delivery and avoid limitations in specific challenges,’ adds the expert.
2) Data and competitive intelligence
With AI facilitating automation, compiling data and monitoring competitors (clipping, IR — institutional relations) has become faster, but a team that understands the business and market is still essential. A BI (business intelligence) team with technical expertise alone isn’t enough; understanding the client and context is required.
Data and competitive intelligence must be integrated across all areas — media, planning, and creative — as these 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 innovation in video
Investing in high-tech solutions is pointless if the audience or medium doesn’t support it. Often, less is more. Immersive or interactive solutions may generate better retention in experiences like in-game ads, while pre-rolls and mid-rolls require focus on capturing attention without excess, to avoid appearing forced. Audiences are more skeptical, and too much can drive them away rather than engage them.
4) Strategic partnerships
Strategic partnerships are even more important today, given market complexity and the diversity of channels and solutions. ‘Partners help tackle challenges, recapture audience attention, and choose the best channel for the message. Agencies must 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 the creative and implementation process is increasingly automated,’ concludes the US Media Performance director.
