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AI race: countries compete for leadership and companies seek innovative solutions

Artificial intelligence has established itself as one of the most impactful technological transformations of contemporary society, influencing everything from the global economy to people's daily lives. In a comprehensive analysis of the topic, presented at the Yalo Connect AI event that brought together leaders from Brazil's largest industries, professor, researcher, and Uol columnist Diogo Cortiz explored the multiple dimensions of AI, highlighting its technical, geopolitical, and economic aspects, tracing the history of this technology since the 1950s, drawing a parallel with the history of computing, a period marked by enthusiasm for the future and disillusionment with the limitations of the time.

Among this spectrum, three main factors have been accelerating the development of AI: the increase in computational power, the massive digitization of data, and the rise of artificial intelligence tools. The enhancement of these tools has made processing large volumes of information more efficient, while digitization, intensified by the web and social networks, has generated an immense database to feed AI models. Artificial intelligence has transformed the way technology is perceived and used.

"AI was already part of our lives through interfaces we used, recommendation systems, fraud detection systems. We were already bombarded with artificial intelligence, but in an hidden way. What has changed is that now we can notice it if there is data. And this brings a new dynamic to the market and society," explained Professor Diogo Cortiz.  

Currently, this intelligent technology can be used as a geopolitical strategy, since countries and economic blocs compete for leadership in the development and control of this technology, with AI as a competitive advantage for national security, industrial innovation, and global influence. The United States and China (the world's major powers) are the main protagonists of this race, investing billions of dollars in research, infrastructure, and specialized talent. The European Union is already seeking to balance innovation with regulatory methods, establishing some standards to ensure the ethical and responsible use of Intelligence.

Furthermore, with the popularization of some tools, interaction with AI has become accessible, enabling new possibilities for use and expanding its social impact. This rapid popularization demonstrates that AI is not just a technological tool, but a paradigm shift, redefining the relationship between humans and machines and paving the way for new applications in various fields.

Not only in the sights of governments and institutions, but the corporate sector is also heavily investing in the use of AI to improve industry efficiency and costs. Recently, the Mexican company Yalo, an intelligent sales platform now also present in Brazil, announced globally that it is developing the first intelligent sales agent capable of acting as a digital worker that recreates the skills of human salespeople. This solution is already being tested in some companies and a beta version will soon be launched with major brands in Brazil and around the world.  

"Companies seek complete solutions, not just technological tools. For this reason, we are working on the development of the first sales agent fully driven by AI. The idea is to design an additional team member to perform specific missions and create a digital workforce that enhances and complements human teams," said Manuel Centeno, General Manager of Yalo in Brazil.

Number of delivery users in Brazil is expected to reach 90.5 million by 2029

Brazil is one of the world's leading food delivery markets, and the trend is for continuous growth. Delivery platforms have been investing in variety and quality, expanding the options available to consumers.

In this context, the estimate is that the country will have 90.5 million delivery users by the end of 2029, according to data from Statista. In other words, the number will approach half of the Brazilian population.

With this growth, companies in the sector seek to serve new audiences more efficiently, which also increases demand.

Food delivery continues to expand among Brazilians

Currently, about 40% of Brazilians use delivery platforms, according to a Ticket survey. After the growth caused by the pandemic, the segment maintained its upward trajectory due to the pursuit of practicality and speed in daily life.

Globally, the sector is expected to generate $1.4 trillion in 2025, according to Statista. Furthermore, the number of consumers will continue to rise, potentially accounting for about one-third of the world's population by the end of 2029.

In Brazil, iFood leads the market, but an increasing number of restaurants have been investing in their own delivery platforms. Furthermore, economic uncertainties make delivery an attractive alternative, as it allows for optimizing operational costs.

Profile of the delivery consumer in Brazil

The growth in demand for delivery is directly linked to changes in consumer habits. Ticket's research released relevant data about the profile of Brazilians who use these services.

Generation Z, composed of people between 15 and 28 years old, is the main audience for delivery, with 51% of this group using such platforms. This age group, more digitized and connected to technological innovations, is more familiar with online services.

The most frequent orders include fast food, such as burgers and pizzas, as well as traditional Brazilian cuisine dishes and meats. At the same time, the consumption of healthy foods increased by 98% in recent years, according to Sebrae.

Furthermore, the increased demand for natural and vegan options has led platforms to diversify their offerings in this segment.

Challenges and opportunities for the sector

Despite the growth, the delivery market faces challenges, especially for new companies, since iFood holds 80% of the orders. However, the adoption of proprietary platforms by restaurants and supermarkets is gaining ground.

A consolidated trend is the dark kitchen model, which functions askitchens for delivery, without in-person service. Statista projects that by 2030, this format will account for half of global delivery services.

Artificial intelligence has also been incorporated into the sector to personalize service based on consumer behavior. Data analysis allows offering meals and promotions more efficiently.

Logistics remains a challenge, whether for quick deliveries in large urban centers or to reach more remote areas. Therefore, solutions such as automated routes and the use of autonomous vehicles are being tested by companies in the sector.

The increase in demand also reinforces the need for variety in menus. Companies that prioritize specific diets and dietary restrictions can stand out among the competition.

Growth trend expected to continue in the future

In Brazil, the food delivery market is expected to reach $21.18 billion in revenue by 2025. The expectation is for an annual growth of 7.05% until 2029, reaching US$ 27.81 billion.

With the expansion of dark kitchens and the advancement of technological innovations, delivery tends to become even more accessible, expanding its operations to other segments of the food industry.

Consumption drives growth in food retail

Food retail continues to rise and according toScanntech Radar data in partnership with McKinsey, the sector grew 3.3% in revenue in February 2024, driven by increased consumption and promotional strategies.

Furthermore, the products that recorded the greatest increase in sales in terms of value were:

  • Café: 61,3%
  • Ovos: 21,1%
  • Body moisturizer: 19.8%
  • Water: 18.8%
  • Hair kit: 18.7%
  • Frango in nature: 17.3%
  • Oil: 16.6%

Furthermore, anotherrecent research by MindMinersIt was highlighted that the main factors influencing consumer choices in the food sector, reflecting an increasingly conscious and demanding consumer, are: price, at 68%, and taste, at 64%. Furthermore, aResearch by Capterra ConsultingIt revealed that 49% of consumers consider speed the most important factor in deliveries.

It is in this context that Daki, an online grocery app and leader in ultra-fast deliveries, has been a key player in transforming the sector, investing heavily in technology, logistics network, and a dark store-based model to ensure efficiency in the last mile. As a reflection of this strategy, the company recorded a 66% growth in supermarket orders on the platform in 2024.

Another highlight is the strong growth of the supermarket delivery market. According to a Ticket study, 40% of Brazilians order food for delivery, and 11% make one to two orders weekly.

Daki conducted a recent survey on the best-selling products in the app, and this helps to understand certain consumer behavior patterns. The research was divided into the main categories

  • Do not feed:Omo perfect wash clothes detergent 3l; Daki double-ply toilet paper 8 units; Neve Supreme triple-ply toilet paper 20m with 12 rolls; Neve Toque de Seda toilet paper 2p 5×12 20m; Personal double-ply toilet paper 30m 12 units.
  • Grocery storePiracanjuba whole milk 1l; Italac whole UHT milk 1l; Gallo extra virgin olive oil 500ml; Moça condensed milk 395g; Camil type 1 white rice 5kg.
  • Liquid:Coca-Cola sugar-free soft drink 2l; Heineken sleek beer 350ml; Coca-Cola original soft drink 2l; Spaten pure malt beer 350ml (cold); Coca-Cola sugar-free soft drink 1.5l.
  • Fresh:Hortmix extra white egg 20 units; Centroeste prime ground beef 500g (chilled); Centroeste picanha cut 1kg (frozen); Sadia frozen chicken breast fillet 1kg; Hortmix silver banana 500g.
  • Perishables:Président sliced mozzarella cheese 150g; Daki traditional cheese bread 400g; YoPRO chocolate flavored milk drink 15g high protein Danone 250ml; Panco original baguette bread 300g; Vigor traditional creamy cream cheese cup 200g.

Game-changing: Predictions for the iGaming market after bookmaker regulation

The regulation of the betting market in Brazil, consolidated with the sanction of Law 14,790 in December 2023, opened a new chapter for the iGaming sector — a term that refers to all betting activities that take place on online platforms. The measure established clearer rules and boosted the growth of a previously limited and informal market. In addition to opening new opportunities for companies and players, regulation strengthens legal certainty, increasing user confidence and attracting investments.

Although this action has taken an important step towards structuring the segment in Brazil, some significant challenges still persist. One of the main ones is the illegal betting market. It continues to represent a considerable portion of the sector, moving around R$ 8 billion per month, according to the Central Bank's estimate, without the tax contribution generated by a formalized market. This situation harms tax revenue and hinders the full utilization of the sector's potential in the country.

To Marlon Tseng, CEO ofSmiling, a payment gateway specializing in solutions that connect businesses to emerging markets, “the legalization and regulation of iGaming in Brazil paves the way for sustainable growth. In addition to tax collection, legal security encourages investments and the arrival of new operators, consolidating a more competitive and reliable sector for consumers”.

A survey by the International Betting Integrity Association (IBIA) indicates that the licensed Brazilian sports betting market could generate $34 billion in revenue by 2028 — an indication of the sector's growth potential under the new regulation. Only in 2024, according to the Central Bank, the monthly volume of transfers for betting ranged between R$ 18 billion and R$ 21 billion.

Furthermore, according to other estimates from the Central Bank, Brazilians spent around R$ 20 billion on online betting in September 2024 (including the R$ 8 billion handled by illegal companies, which failed to generate R$ 30 million in government operating taxes).

Marlon emphasizes that, with a more structured environment, the betting sector becomes more attractive to investors and operators. He explains that a regulated market benefits not only companies but the entire economy, creating an environment where transparency and compliance with laws ensure the strengthening of the sector and attract more investors interested in participating in a solid and ethical market.

“This new scenario favors innovation in business models and requires platforms to adapt to legal requirements, driving the entry of new players and the professionalization of the sector, positioning Brazil as one of the most promising destinations for betting in Latin America,” he concludes.

Generation Z is more ambitious than Millennials, survey finds

Young people from Generation Z (born between 1997 and the early 2010s) exhibit higher levels of ambition and are more curious compared to the Millennial generation (born between 1981 and 1996). This is one of the conclusions of the research conducted by Hogan Assessments, in partnership with the Brazilian consulting firm Ateliê RH, a pioneering distributor of the tests in the country.

"The problem is that an image has been created that the young people of Generation Z are not as ambitious as previous generations, and that they prefer to have a better quality of life," says Roberto Santos, partner-director of Ateliê RH. "Actually, Generation Z has de-romanticized the relationship with work. They are more interested in making money," says the expert.

A survey conducted by YouGov in 2024 on generational differences in Latin America indicates that, in reality, the biggest difference between Generation Z and other generations is that these young people have a completely different relationship with their professional trajectory: only 43.5% declared to love their work – the lowest number among all generations compared in the study (Millennials, X, and Baby Boomers). Furthermore, 47.4% of young Latinos are much more focused on making money than on advancing their careers, according to the research institute.

"Another point that differentiates Generation Z is the approach to learning – young people prefer formal learning over a more practical approach," Santos points out. Messages, posts, books: reading is valued among Gen Z youth, who read more (59%) than their Millennial predecessors (53%). The habit is already reflected, for example, in libraries, which have gained a new lease on life: their most frequent visitors are between 16 and 24 years old, according to a survey conducted by Ibope/Instituto Pró-Livro last year.

“On the other hand, Gen Z can get bored more easily than their predecessors. And this difference occurs, in large part, because these young people are digital natives – for them, the screen experience has been part of their daily lives since an early age – when the iPhone 3G arrived in Brazil, in 2008, the oldest children of Generation Z were 11 years old. The instantaneousness of obtaining information and relationships is something normal, unthinkable for previous generations”, highlights Santos.

Is arrogance a problem for this generation?

Common sense and research conducted by magazines and consulting firms point to arrogance as a major "Achilles' heel" of these young people, as they have disproportionate expectations regarding their career progress, overestimating their own competence. It is also reported that young people are less open to criticism and feedback – which has been affecting their progress in jobs.

On the other hand, the Hogan Assessments study, considering the Brazilian population, does not identify the "Arrogant" scale of the Hogan Challenge Inventory differentiating Millennials and Generation X, perhaps somewhat in relation to Baby Boomers. However, I note that in the overall sample for all generations, the index of this scale is significantly lower but follows the same pattern that it is not a typical trend of Generation Z.

The question remains as to whether, particularly in Brazil, the tendency to display arrogant attitudes is also linked to disillusionment with the work environment, and a negative outlook towards the market in general, and a distrustful attitude towards the promises of the corporate world.

Altruistic and business-minded

Although they are often portrayed as detached or uninterested in their careers, Generation Z youth show great concern for social impact and business ethics. Hogan Assessments' research indicated that they have significantly higher scores on the Altruism scale, which suggests a strong desire to contribute to societal well-being and to be part of companies with purpose and positive impact.

This is reflected in the way they choose their employers and brands they associate with. Companies that demonstrate a genuine commitment to diversity, sustainability, and social responsibility are more likely to attract and retain Generation Z talent. This characteristic can pose a challenge for organizations that do not have a clear alignment with these values, as this generation tends to avoid brands they consider inconsistent or involved in questionable practices.

At the same time, Generation Z youth show a significant interest in financial issues and business strategies. The research revealed that, compared to Millennials, they have a lower motivation for scientific and academic values and a higher motivation for financial gains and commerce. This data reinforces the idea that, for this generation, professional success is directly linked to remuneration and financial stability, and not necessarily to prestige or hierarchical advancement.

Hogan's study was based on tests answered by 23,000 people in Brazil between 2001 and 2022. The analysis was conducted based on the comparison of the three main Hogan assessment tools: the HPI, which describes normal personality or the "bright" side of personality; the HDS, which assesses the "shadow" side, manifesting in behaviors that appear during stressful moments; and the MVPI, which measures a person's motives, values, and preferences, helping to understand what drives them. The Hogan assessments were created based on a specific methodology for the corporate world.

Legaltech announces the launch of “Legal as a Service” to meet the growing demand for legal solutions in Brazil

DeltaAI, the legaltech that applies artificial intelligence to predict legal disputes and mitigate conflicts between companies and consumers, announced the launch of the "Legal as a Service" concept in Brazil, an initiative that offers integrated and technology-based legal solutions for companies facing an increase in lawsuits related to abusive consumer practices. The proposal aims to meet the growing demand for efficient and tailored legal solutions.

Between January and October 2024, the National Justice Council (CNJ) registered 533,774 new legal actions for abusive consumer practices, averaging 1,750 cases per day. São Paulo, Paraná, and Rio Grande do Sul stand out as the states with the highest litigation rates, reflecting the growing trend of judicialization in Brazil.

“By offering on-demand legal services, DeltaAI facilitates access to customized legal solutions, quickly and effectively, without the need for a dedicated internal structure,” he explains.Patricia Carvalho, CEO of DeltaAI.“Our model allows companies to manage legal risks more effectively, given the increase in lawsuits in Brazil.”

Inspired by the "Bank as a Service" model, which enables companies to access banking services without the need for their own infrastructure, the concept of "Legal as a Service" aims to transform the way companies hire legal solutions. With this model, companies can access on-demand specialized services tailored to their needs, without the complexity and costs of maintaining a robust internal legal structure.

The initiative includes preventive consulting, document automation, and litigation monitoring, aiming to reduce the volume of judicialized cases. DeltaAI thus aims not only to help companies face the increase in litigation but also to improve the relationship with consumers through proactive legal management.

Using artificial intelligence and data analysis, DeltaAI provides strategic insights to support companies in making more accurate decisions and adopting practices that ensure legal compliance and customer satisfaction. With this, the legaltech positions itself as an option for companies seeking innovative solutions in the legal market.

“We want to provide companies with the tools they need to manage and mitigate legal risks. Furthermore, by adopting a preventive approach, it is possible to reduce litigation and avoid legal proceedings. Our goal is to contribute to a more functional legal management, helping companies to avoid lawsuits and, when necessary, to manage them more effectively”, he concludes.Patricia.

DeltaAI, with the concept of "Legal as a Service," aims to meet the growing demand for efficient legal services by creating a solution that integrates technology and legal expertise for companies across Brazil. The proposal aims to provide greater agility and reduce dependence on complex internal legal structures.

Pub incorporates storyselling company, The Factory, and reaches R$20 million in revenue this year

A Pub announcesthe arrival of The Factory, a company specialized in Content Marketing and Digital Marketing, unifying all communication and marketing services into a single structure. The integration provides comprehensive solutions for planning, production, and distribution of brand narratives that encompass editorial strategy and channel management, inbound marketing campaigns, internal communication content, and management of executive profiles on LinkedIn, among other deliverables. The merger incorporated all employees of The Factory and clients such as Pluxee and Stellantis, further strengthening the agency's portfolio.

In addition, the agency also announces a new executive structure of vice presidents with the promotions of Nubia Tavares, Anne Fadul, Gustavo Barroso, in addition toarrival of Rogerio Parrilla, who will be responsible for leading the creative department, integrating design, marketing, branding, and growth. Among the changes Parrilla intends to implement are internal training to align the brand's identity and strategy, as well as expanding the agency's service portfolio.  

"My role will be to expand creative diversity and structure processes that enhance the quality of the agency's deliverables. By combining technology, which follows a defined path, with the broadening of horizons provided by creativity, it is possible to create new approaches and establish innovative standards," highlights Rogerio.  

The agency also strengthens its governance with thecreation of an advisory board, which includes Eduardo Vieira, CMO of SoftBank; Anahi Guedes, communications director of Nestlé; and Adriano Silva, founder of The Factory and the Draft Project. The group brings a combination of experiences that will contribute to the expansion of Pub and the consolidation of its position in the communication market.

"The arrival of The Factory, the new VP structure, and the creation of our advisory board represent a milestone in Pub's journey. We are unifying forces, expanding our capabilities, and building an even stronger foundation for the agency's sustainable growth. Our goal is to continue offering innovative solutions, data-driven and market analysis-oriented, to help our clients tell authentic and impactful stories through the most relevant channels for their audience," reinforces Ricardo Bonatelli, founder and CEO of Pub.

"The Factory celebrates ten years as a storytelling boutique, helping brands become publishers and use content to build conversation, engagement, and conversion. We are very happy that, from now on, we will join Pub's winning team and be able to rely on the agency's structure and skills to deliver editorial excellence to an even larger number of clients," says Adriano Silva, founder of The Factory, who will now join Pub's advisory board.  

In January of this year, Pub also announced its international expansion through a partnership with MilleniumGroup, strengthening its presence in the global market and expanding its operations to serve clients in an even more integrated and strategic manner.

Marketdata launches CX Report 2025: a deep dive into Brazilian consumers’ opinions about their relationship with brands

Marketdata, a consulting firm of the VML Group specializing in strategic data management and a leader in the Customer Experience (CX) segment in Brazil, presents the Marketdata CX Report 2025, an in-depth study to assess the interaction or relationship experience between Brazilian consumers and brands. The survey, conducted in November 2024 with 200 participants recruited by MindMiners, explores consumer preferences and expectations, as well as opportunities for improvements in consumption experiences.

The study reveals that WhatsApp dominates as the preferred communication channel among consumers, with 55% adoption; followed by apps and websites, which account for 39%. This reinforces the need for a more effective omnichannel strategy. Despite the preference, however, the experience with chatbots still needs to evolve: 60% of respondents use this tool, but 69% report neutral or negative experiences and 25% state they are dissatisfied. Therefore, the study highlights the need for improvements in artificial intelligence technologies to provide more natural and personalized interactions.

In the online shopping scenario, the main factors influencing consumers' decisions are price, cited by 77% of respondents; delivery time, mentioned by 58%; and product variety, indicated by 40%. Logistics, especially in the Northeast region, requires attention to improve the customer experience.

The study also indicates that physical stores continue to play a strategic role in the purchase journey, with 45% of consumers valuing the sensory experience and 40% highlighting the immediate need for the product. The optimization of the payment process, such as reducing queues, can further improve this experience.

Another relevant point concerns the importance of transparency in data use and privacy for building consumer trust, which is open to exchanging personal data for personalized offers. This topic is mentioned by 36% of participants; accompanied by loyalty programs, also cited by 36%; and followed by ease of shopping, indicated by 34% of people. The security in the use of this information is essential to ensure customer trust and to advance this more personalized relationship.

Customer loyalty is directly linked to the quality of the product or service, mentioned by 45% of respondents, and to the quality of customer service, highlighted by 24%. Furthermore, massive and unwanted communications can lead to brand abandonment, which reinforces the importance of more personalized and customer-centered strategies.

Given these insights, the report highlights the need to humanize the digital experience through a balance between automated solutions and accessible human support. The optimization of online sales should consider regional and demographic factors to improve pricing, logistics, and campaign segmentation. Data collection and use must be transparent and purpose-driven, ensuring that the consumer understands the benefits of sharing information. Physical stores should invest in technologies such as Augmented Reality (AR) and Virtual Reality (VR), as well as modernizing payment processes, to transform the in-store experience and boost customer engagement.

Customer loyalty should be a competitive differentiator. Personalized loyalty programs, proactive service, and monitoring metrics such as Customer Lifetime Value (CLTV) are essential for long-term success. The Marketdata CX Report 2025 reinforces the importance of consumer-centric strategies to deliver smoother, personalized, and safer experiences. Companies that understand and meet these demands will be better positioned to retain customers and grow sustainably in the Brazilian market.

“The study reinforces the need for Brazilian brands to quickly adapt to consumer expectations. Furthermore, it points out that the digital experience needs to evolve, especially in the use of chatbots, to ensure more fluid and satisfactory interactions. Companies that know how to balance technology and humanized service with personalization and responsible observance of data processing will have a significant competitive advantage in building lasting relationships with their customers,” comments Marcelo Sousa, COO of Marketdata.

Delays in product delivery and supplier responsibility

The celebration of International Consumer Rights Day is a fundamental opportunity to reflect on the interaction between suppliers and consumers, especially in a scenario that is increasingly dynamic and dependent on logistical processes, since, with the growth of digital commerce and the popularization of marketplaces, online shopping has become a daily reality for a large part of the population.

In this context, delays in delivery are recurrent and can cause harm to consumers, leading to an increase in complaints and doubts about who should actually be held responsible for these problems.

The Consumer Defense Code (CDC) is clear in its article 14 in establishing the strict liability of the supplier of the product or service. This means that the supplier is liable regardless of fault for damages caused to the consumer due to defects in the provision of the service.

When the manufacturer or retailer hires a carrier to deliver the goods, they integrate it into the supply and distribution chain, thus assuming responsibility for any failures.

However, there are exceptional situations that may exempt this responsibility, such as unforeseeable circumstances or force majeure –as long as the event is unpredictable and unavoidable-, such as floods or natural disasters. Internal logistical problems, predictable strikes, or operational difficulties of the carrier usually do not exclude the supplier's responsibility.

These circumstances highlight the relevance of the supplier's role in the effectiveness of the commercial transaction and in the adoption of measures to mitigate possible negative impacts on the consumer.

Moreover, Brazilian jurisprudence has reinforced the understanding that the supplier cannot easily exempt itself from responsibility for damages caused to consumers, even when third parties, such as carriers, are involved in logistics. The Courts recognize that, when contracting essential services for commercial activity, the supplier remains responsible for the actions of these third parties, ensuring greater legal certainty and reliability in consumer relations.

In the event of significant delays, the consumer has the right to demand immediate delivery, request a full refund of the amount paid or, if there are additional losses, claim compensation for material and moral damages, depending on the specific situation.


Therefore, during the celebration of International Consumer Rights Day, it is essential to highlight that, in Brazil, consumer relations are guided by principles that ensure consumer protection, including in situations of delays and failures in the delivery of products or services.

Although logistical problems may involve third parties, it is up to the supplier, as the main party responsible in the consumer relationship, to ensure delivery on time and offer effective solutions to minimize potential losses to the consumer, as well as prevent disputes that may arise from non-compliance with legal and contractual obligations.

By adopting practices that ensure regularity and effectiveness in the provision of services, the supplier minimizes the risk of litigation, avoiding the imposition of sanctions and the burdens arising from possible disputes in the judicial sphere, which reinforces its commitment to responsibility and transparency in the market.

*Lorena Rodrigues Justiniano de Souza is a lawyer specializing in civil law at the law firm Finocchio & Ustra Sociedade de Advogados.

*Eduardo Henrique de Queiroz Silva is an intern in the Civil areafrom the Finocchio & Ustra Law Firm.

Retail and profitability: how to optimize the bottom line?

The customer acquisition cost (CAC) has become one of the biggest challenges in retail. With increasing competition, market saturation, and changes in advertising platform algorithms, acquiring new customers has become more expensive, requiring more effective strategies to optimize long-term return on investment (ROI).

The rise of digital commerce intensified this competition for attention and advertising space. Today, retailers compete not only with large players in traditional retail but also with marketplaces like Amazon and Mercado Livre, which impose high fees for sales on their platforms and invest heavily in marketing. In addition, the cost of digital tools, essential for conversion and personalization, also impacts companies' budgets, making the situation even more challenging.

What is the result of such a complex equation as this? The final profit margin — the so-calledbottom line —has been increasingly pressured in retail as managers seek to balance investments in growth with operational efficiency. Logos and brands face high operational costs, increased competition, and constantly evolving consumers, which makes maintaining viable operations difficult.

However, it is possible to achieve more profitable margins with strategies that increase conversion and reduce customer acquisition costs. One of the most effective ways to achieve this is through the smart combination of paid media and organic strategies such as SEO and content marketing. But at this point, attention is needed: the way these approaches are used makes all the difference in the results. Paid media, when poorly targeted, can become an expensive and unsustainable investment.

I like to bring an analogy from the worldfitness: Relying solely on paid ads is like an athlete using steroids without a proper training and nutrition routine. The growth can be rapid, but not sustainable, and the cost in the end is quite high. In retail, this translates to excessive investments in Google Ads and social media sponsorships, without efficient control, resulting in a high CAC and compromising profitability, both in the short and long term.

On the other hand, organic marketing is a long-term strategy aimed at solid, efficient, and sustainable growth. Investing in SEO, relevant content, and organic ranking allows attracting qualified clients without the high costs of paid media, reducing CAC and generating a continuous flow of leads, resulting in more efficient conversion – like that person who decides to change their lifestyle and adopts a consistent exercise routine and a healthy diet.

In short, when we talk about a highly competitive market like retail, an investment model focused on efficiency and sustainability is the key to steady and profitable growth. For this, managers must be aware that personalized communication, data usage, and automation to optimize the customer journey, as well as retention strategies such as loyalty programs, are essential to reduce waste in advertising campaigns and maximize thebottom linein a balanced way. The pursuit of profitability can be challenging, but with the right methods, it is possible to achieve and expand it.

*Renato Avelar is a partner and co-CEO ofA&EIGHT, an ecosystem of high-performance end-to-end digital solutions.

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