Expenditure on advertising grows 13% by March
Valor Econômico
Businesses increased their spending on advertising in the first quarter of the year, compared to the same period of 2010. Data of Ibope Monitor, received a few days ago by executives of the sector, show growth of 13%, without considering discounts in price tables negotiated between agencies and means of communication. Companies surveyed by Valor reported growth between 7% and 15% compared to the period from January to March 2010, when the average growth got to 12%, as the agencies reported at the time. Ibope Monitor had already reported an increase of 12.6% in the disbursements of the advertisers in media actions in January 2011.
For Luiz Lara, President of the Brazilian Association of Advertising Agencies (Abap), the 13% rate is deemed "exceptional", and it indicates the maintenance of part of the pace of growth had in 2010, when the sector in the country grew 19%. "It is something impressive. But that pace should lose vigor in the second quarter, as the basis for comparison is high, with the World Cup driving the investments in May and June 2010", he says. "Besides, the expectation the country grows less in 2011 may reflected in the performance of the sector".
Some agencies commemorate growth speed above the average of the market this year. The Fischer+Fala recorded a 26% increase in the investments of clients. "It actually surprised us. We have had increases in the cash from companies like Caixa Econômica Federal (Brazilian Federal Savings Bank), Melitta and Lojas Marisa", says Antonio fatigue, President of Fischer+Fala. The agency has just gained the account of the brands Albany and Minuano, of the Flora group, which has already been aired at the primetime, and should again advertise more aggressively this year.
Executive Guga Valente, CEO of Grupo ABC, said the company registered "a strong start of year with an increase of 31% in the net income in the first quarter of 2011" Even without the FIFA World Cup, he believes this will be a better year than 2010 for the group, and he does not believe in negative effects from a possible slowdown in the domestic market. "The increase in the income will support household consumption and that should stimulate the spending on advertising".
For 2011, advertisers estimate a 15% increase in the investments in advertising and should it occur, the country should overcome France and become the sixth largest advertising market in the world. The driving force behind the growth are companies seeking new forms of exposure for their brands in 2011, which because of that should spend more funds. Purchases of media space for new advertisers can also help to sustain the good moment of the sector. "We estimate an increase of nearly 10% in the volume of new advertisers in the country in the early months of the year", says Sergio Amado, President of the Ogilvy group in Brazil. The advertising agency gained the account of the newcomer Chinese automaker JAC Motors with an annual investment estimated at R$ 70 million (US$ 43.8 million).