World Cup 2014 Boosts Digital Advertising Spending in Brazil: Nearly $5 Billion in Computer, Mobile Ad Buying Projected by 2018
With the 2014 FIFA World Cup, host country Brazil has seen an increase in digital advertisement spending, and it is projected to more than double through 2018. According to eMarketer, 2014 will see $2.88 billion in advertising spending on all digital platforms including desktop computers and mobile devices.
Digital advertisement spending in projected to increase by 8 percentage points to 28 percent this year. In 2013, Brazil saw $2.25 billion in digital advertisement spending, which is an increase from 2012's $1.87 billion.
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As Latin Post reported, devices such as smartphones and tablets will be popular for monitoring the World Cup tournament. In an international study, including Brazilian respondents, smartphones was the second most popular method to follow the soccer tournament behind television. Tablets ranked fourth place.
Following the World Cup activities, the positive percentage growth is expected to decrease by nearly double. For 2015, while digital advertisement spending will increase to $3.31 billion, it will represent a 15 percent change, down 13 percentage points from 2014.
The downward trend, percentage-wise, is expected to continue through 2018 except for one year as Brazil's set to host the 2016 Summer Olympics. With the next Olympics, digital advertisement spending will increase to $3.86 billion and represent a 17 percent increase from 2015's spending.
After 2016, the percentage growth declines return. For 2017, $4.41 billion in digital advertising spending is projected, but it is a 14 percent growth. By 2018, the spending is estimated to reach approximately $5 billion, but it is a 12 percent increase.
Of the billions projected spent, mobile Internet advertising represented a small fraction. For 2014, $111.9 million is projected on mobile Internet advertisement spending but only for display and search advertisements and not messaging-based ads. The 2014 projection is more than double from the $54.5 million spent in 2013. By 2018, with more Brazilians have smartphones and access to the online web, mobile Internet advertisement spending is estimated to reach over $1 billion, or approximately 20 percent of all digital spending.
Brazilians spend more time on the Internet than any other medium on weekdays and weekends. Based on data collected in November 2013, The Secretaria de Comunicação Social da Presidência da República (SECOM) study found the average Brazilian surveyed spent three hours and 39 minutes online between Monday and Friday. On weekends, the average Brazilian spent three hours and 43 minutes on the Internet.
eMarketer had estimated 49.3 percent of the Brazilian population went online during 2013. This year might produce heavy online activity in Brazil with 53.1 percent penetration. The Internet usage is expected to increase by 2017 with approximately 60 percent penetration.
"As the number of users in the country rises, the Internet should claim more of consumers' time spent with media-and see more frequent usage," added the digital marketing, media, and commerce insights service.
For the latest updates, follow Latin Post's Michael Oleaga on Twitter: @EditorMikeO or contact via email: email@example.com.
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