Advertising should grow 15% in Brazil
Folha de S. Paulo
Brazil should overcome France this year and become the sixth largest advertising market in the world. The country generated US$ 12.9 billion (R$ 20.6 billion in current values), figure that should grow 15.4% a year until 2013 (reaching US$ 16.3 billion), according to the media consulting firm ZenithOptimedia, subsidiary of the Publicis group. The growth rate is one of the highest in the world, above that of China (13.6%). To make the comparison in dollar between countries, the consulting firm based itself on the average exchange rate for 2009.
Even though the mature markets of Europe and the United States have resumed growth (the forecast is an annual growth of 3.5% and 3.1% respectively in the next two years), it is the emerging markets that are pulling the growth in the sector. Until 2013, the emerging markets should be responsible for 35.1% of the spending with advertising in the world, compared to 30.9% last year. In absolute terms, the countries that will contribute the most to the growth of the sector until 2013 are: USA (with another US$ 14.2 billion), China (US$ 10.7 billion), Russia (US$ 6.9 billion) and Brazil (US$ 3.3 billion).
Despite the relatively low rate of growth, the American market is a giant. It generated US$ 151.5 billion last year, 250% more than the second largest market, the Japanese. The earthquake in Japan and the crisis in the Middle East, particularly in Egypt, represented a decline of US$ 2.4 billion in the spending on advertising in 2011. The Japanese market, with US$ 43 billion of investments in 2010 should shrink 4.1% this year. In Egypt, the fall will reach 20%. With that, the growth forecast of the advertising market in the world, which ranged from 4.6% to 5.2% in December, fell to 4.2%.
But the expectation is that at least part of the disbursements be resumed in 2012, year in which the market must finally recover the levels of 2008, prior to the global financial crisis. The growth forecast for next year increase from 5.2% to 5.8%, according to ZenithOptimedia. Expenditures in 2012 should amount to US$ 498 billion, compared to US$ 494 billion in 2008. The Internet must overcome the newspapers and consolidate as the second largest media in the world in advertising investment in 2013, foresees ZenithOptimedia. The spending on advertising in newspapers was 51% greater than that of the internet in 2010. While the web grows worldwide, the circulation of newspapers decreases in the developed markets.