Advertising in the country grows more than global average
Folha de S. Paulo
The Brazilian advertising market will continue to grow above the global average in the coming years, consolidating as a major source of earnings of the sector; that is what indicates the surveys released this week. Studies show that sectors such as newspapers, TV and the Internet will have growth in earnings above the expected for the economy in general (GDP).
For GroupM (arm of the WPP agency, the largest advertising group in the world), the Brazilian advertising market will grow 9.5% next year (compared to the global growth of 5.8%) and it will be the fourth among those that will contribute with "new cash" for the sector. According to the forecast, US$ 1.4 billion more will enter the advertising sector of the country in 2011 - amounting to US$ 18.4 billion -, which represents 5% of the global growth. Only the amount of "new cash" (the difference between the income of a year and the prior, when positive) represents more than the entire Chilean advertising market, for example.
As regards ZenithOptimedia (subsidiary of the French Publicis), it foresees that between this year and 2013, the earnings from advertising in Brazil will only grow less than in China among the main world markets. According to it, the Brazilian market will register 31% growth by 2013, while the Chinese will have growth of 51%. The American market, largest of the world, will have much more modest expansion: 9%.
Although the figures are not identical, both the firms suggest the market in the country is consolidating as the sixth largest in the world and it begins threatening another giant, the British. According to GroupM, the country should have a 3.3% share of world advertising market in 2011, grabbing a slice for fifth year in a row. According to ZenithOptimedia, that share shall reach 3.6% in 2013, staying little below that of the United Kingdom: 3.8%, or 0.2 percentage point less than this year.
The 166-page study of GroupM also shows all sectors in Brazil, except for those of guides and information pages, will grow next year - the greatest growth will be that of Internet, with earnings 35% greater than this year. Newspapers, for instance, will grow 7%. The earnings of the advertising sector, of US$ 2.2 billion, will the ninth greatest in the world, gaining six positions compared to 2003.