Online ad spend grows more than three times as fast as total ad spending
With an economy roughly equal to that of the rest of Latin America combined, Brazil is experiencing a strong increase in advertising as brands jump at the opportunity to establish themselves with a rising, and spending, middle class. Online ad spending is becoming an important slice of that pie, as eMarketer estimates the country neared 80 million internet users in 2011.
According to the April 2012 Interactive Advertising Bureau Brasil (IAB Brasil) report, "Indicadores de Mercado," total advertising jumped 10.6% to reach BRL30.35 billion ($18.18 billion) in 2011. Online revenues for display and search rose 37.3%, more than triple the overall ad growth rate, for a total of approximately BRL3.34 billion ($2 billion).
The IAB estimated that online ad’s explosive growth pushed its share of total ad spending up to 11.0% in 2011—a trend that is expected to continue into 2012.
eMarketer forecasts 86.4 million internet users in Brazil by the end of the year, accounting for 42% of the population. Additionally, household broadband penetration will reach nearly 30%.
As a result of increased internet and broadband penetration, the IAB predicted that online ad spending would increase another 39.1% in 2012, pushing spending to BRL4.64 billion ($2.78 billion) and 13.7% of all ad spending for the year.
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Check out today’s other articles, “Companies Use Social to Track and Follow Up on Brand Mentions” and “Engagement Is Not a Goal, It’s a Result.”