Mobile will take 5% of digital ad spend by 2016
Internet penetration is on the rise in Brazil, in tune with steady growth in household income. In response, marketers have begun directing more substantial portions of their budgets to digital advertising, doubling Brazil’s digital ad spending between 2010 and 2012, according to a new eMarketer report, “Brazil Digital Ad Spending: A Growing Consumer Base Lures Marketers Online.”
Investment in digital will double again between 2012 and 2016.
That brisk growth is partly explained by the relative youth of the country’s online population and its small base of digital advertisers. In addition, a growing middle class is helping lure marketers to the digital space.
Despite Brazil’s economic growth and expanded access to the internet, however, when viewed internationally, Brazil’s digital ad spending stands at only about half the worldwide average for share of total ad spending.
IAB Brasil estimates that online ad spending will make up 13.7% of total media ad spending in 2012, giving the internet the second-largest media market share in Brazil and pushing newspapers to third place.
For 2012, total media spending projections range from $15.5 billion to $20.3 billion. ZenithOptimedia estimates that the country will take the UK’s spot as fifth-largest spender by 2014.
Expanded mobile usage will also spur the digital advertising market in Brazil.
Mobile internet penetration in Brazil grew explosively in 2011 and has expanded at a rapid pace in 2012 as well. Following a leap in smartphone uptake between 2010 and 2011, there was a sharp rise in mobile ad spending. In 2012, mobile ad spending, worth $24.6 million, will account for 1.2% of Brazil’s digital ad spending. eMarketer expects mobile’s share of digital ad spending to reach 4.9% by 2016, totaling $198.3 million, on the strength of still-rising penetration rates.
The full report, “Brazil Digital Ad Spending: A Growing Consumer Base Lures Marketers Online,” also answers these key questions:
- What is the size of Brazil’s digital advertising market?
- How does digital ad spending in Brazil compare to that of other markets?
- How are Brazil’s growing middle class and deepening internet usage stimulating the digital advertising space?
- What are some key indicators of mobile media growth potential in Brazil?
This report is available to eMarketer corporate subscription clients only. Total Access clients, log in and view the report now.
Check out today’s other articles, “As Tablets Surge, Ereaders Struggle” and “Convenience Draws Affluents to Online Holiday Shopping.”