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Digital Ad Spending in Brazil Is an Increasing Share of the Media Market

In Brazil, digital’s share of total ad investments still has room for growth

eMarketer expects digital advertising spending in Brazil to expand by 20.0% in 2013, bringing the total market value to $2.49 billion by the end of the year. The halved growth rate compared with 2012 is partly explained by the increased number of players in the market, which effectively widens the base from which digital ad investment grows—but at the expense of the high gains Brazil’s digital marketing space saw in its earlier years. Now every new expenditure in digital advertising counts as smaller slice of the pie.

But 2014 will be a year of regained growth as the FIFA World Cup and presidential and gubernatorial elections ramp up advertising spending across the country to $3.19 billion, a 28.0% hike from 2013. At this rate, Brazil’s digital ad market will see increases more than double those projected for the country’s overall advertising space next year, which eMarketer expects will expand another 12.0%. In 2014, digital ad spending in Brazil will also hit its highest share yet of the country’s media market, accounting for 14.1% of total media ad investments.

By mere virtue of size, Brazil registers significantly more dollars spent in digital advertising than other Latin American markets, outspending neighbors Mexico and Argentina by a wide margin and accounting for more than 60% of the region’s digital ad spending.

But when considering Brazil’s digital ad spending as a share of total ad investment, the country leads Latin America by just a small margin, while hitting at just over half of the worldwide average. Mexico, for example, is expected to spend a higher share of its advertising in digital for at least the next four years, by which point one-quarter of its advertising expenditure will be going to digital, compared with just over 16% in Brazil.

Still, over the next four years, digital ad spending in Brazil is expected to continue growing more quickly than total ad spending—while becoming an increasingly larger share of the country’s advertising market.

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