Annually, IAB Brasil and Kantar Ibope Media unite to present the updated perspectives on the digital media landscape in the country. In 2023, the AdSpend Digital Report once again confirms the unanimous feeling that we are living a moment of expansion, acceleration and innovation in the area projects. According to the study, the value for digital advertising in Brazil last year increased by 8%, surpassing the R$ 35 billion mark.
This evolution is explained and driven mainly by the need for companies to diversify their advertising investments, avoiding the saturation of traditional platforms such as Google and Meta. Brands are increasingly aware of the importance of a strategic and multi-purpose approach in their media campaigns, seeking to reach broad audiences and in a more qualified way.This is because diversification allows companies to reduce associated risks and the dependence on a single channel, providing a more balanced and effective return on advertising investment (ROAS).
A relevant point to be considered is the risk of excessive dependence on a single major media player. The recent ban on TikTok in the USA illustrates this question well. Without entering into the legal and political merits of the situation, one aspect draws attention by meeting a fundamental question for the digital advertising market in Latin America: how risky can it be to anchor a media plan to a single major player?
This high level of dependence ends up generating a relationship of extremely dangerous unpredictability, from a strategic and economic point of view. It is no wonder that many advertising agencies and advertisers are concerned about what is happening. And this is not an exclusive situation of TikTok. Today, the looks are on this publisher, but tomorrow, for other reasons, this same dilemma can apply to another giant. When will there be a price increase? When will there be an algorithm change? When the government will force the division of these companies? The unpredictability is precisely in this direction.
I cite some examples: in 2017, there was a situation of lack of “brand safety” with YouTube. Already 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 notice. I genuinely believe that diversification of advertising investment is the best antidote to avoid these risks. As the saying goes: “do not put all eggs in one single 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, consolidating itself as a leader in innovation when it comes to digital media. However, this is far from saying that we can not advance further in this direction.
Diversifying media investments means reaching even wider and more engaged audiences, which is a fundamental process to adapt actions to changes in consumer behavior and take advantage of the 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 an increasingly extensive range of services and solutions, which accompany this movement of search for new approaches and that meet the specific needs of the sector of each client. 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 financial, 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 funds, 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 with more assertiveness.
Channel diversification, in addition to avoiding over-reliance on traditional media, increases the resilience of marketing strategies and opens up a range of possibilities to innovate and discover new ways to engage audiences.
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 to balance personalization and privacy, offering relevant experiences without compromising the personal data of users.In addition, it will be crucial to keep track of consumer preferences, which are 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 the tools of everyday consumer. Brands and agencies that embrace this change and invest intelligently in digital media will have an important competitive differential, boosting their growth and consolidating their position in the market.
