Annually, IAB Brazil and Kantar Ibope Media come together to present updated insights 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 period of expansion, acceleration, and innovation in the area's 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 primarily explained and driven by companies' need to diversify their advertising investments, avoiding 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, aiming to reach broad audiences in a more targeted manner. This is because diversification allows companies to reduce risks associated with dependence on a single channel, providing a more balanced and effective return on advertising investment (ROAS).
A relevant point to consider is the risk of excessive dependence on a single major media player. The recent ban of TikTok in the USA well illustrates this issue. Without delving into the legal and political merits of the situation, one aspect draws attention as it addresses a fundamental question for the digital advertising market in Latin America: how risky is it to anchor a media plan to a single major player?
This high level of dependence ends up creating an extremely dangerous unpredictability in terms of strategy and economics. It's no wonder that many advertising agencies and advertisers are concerned about what's happening. And this is not an exclusive situation of TikTok. Today, all eyes are on this publisher, but tomorrow, for other reasons, the same dilemma may apply to another giant. When will there be a price increase? When will there be an algorithm change? When will the government require the division of these companies? Unpredictability is precisely in this sense.
I cite some examples: in 2017, there was a situation of lack of "brand safety" with YouTube. In 2021, there was another situation involving 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 its rapid and effective adoption of new digital platforms. Compared to other markets in the region, the country shows remarkable progress, establishing 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.
Because diversifying media investments means reaching even broader and more engaged audiences, which is a fundamental process to adapt actions to changing consumer behavior and to take advantage of new opportunities offered by the digital market. Opting for diversification avoids problems 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 a broader range of services and solutions that keep up with 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 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 targeted 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 forms of communication and creating well-structured campaigns that reach the target audience more effectively.
Diversifying channels, in addition to avoiding excessive dependence on traditional media, increases the resilience of marketing strategies and opens up a range of possibilities for innovating and discovering new ways to engage the public.
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, such as Connected TV (CTV) and artificial intelligence, advertising will become more present in our daily lives. The challenge will be balancing personalization and privacy, providing relevant experiences without compromising users' personal data. Furthermore, it will be crucial to monitor 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 a significant competitive advantage, boosting their growth and consolidating their position in the market.
