Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Brazil

Brazil

Ad spending in the Traditional TV Advertising market in Brazil is forecasted to reach US$4.92bn in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 1.31%, leading to an estimated market volume of US$5.25bn by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market is projected to be US$28.50 in 2024.
By 2029, the number of users in the Traditional TV Advertising market in Brazil is expected to reach 178.2m users.
Traditional TV Advertising in Brazil is seeing a resurgence as companies leverage its wide reach and effectiveness in engaging with diverse audiences.

Key regions: Germany, Europe, Japan, United Kingdom, Australia

Definition:
Traditional TV Advertising refers to ad spending on moving image formats broadcasted via traditional transmission channels such as terrestrial and digital terrestrial (DTTV, DTT, DTTB) TV, cable TV, satellite TV, and linear TV delivered via Internet Protocol television (IPTV). Terrestrial television uses traditional antennas that transmit analog signals. Analog terrestrial TV has undergone a digital switchover (DSO) to digital terrestrial TV in most parts of the world. For digital terrestrial TV, television broadcasting stations transmit TV content through radio waves to televisions in households in a digital format. Internet Protocol television (IPTV) refers to the delivery of television content via Internet Protocol networks. IPTV is used in subscriber-based telecommunications networks via set-top boxes or other customer-premises equipment (IPTV is included in the cable revenue split here). Traditional TV Advertising covers all ad spending on pay-TV operators and networks as well as free-to-air networks and free-to-air spin-off digital channels from terrestrial network operators. Usually, the distribution of advertising time in television programs is either carried out by the broadcasters themselves or by marketing agencies.

Structure:

Cable TV signals are transmitted through coaxial or fiber-optic cables directly to each household without the need for external antennas.
Satellite TV includes television programming with the use of communication satellites that transmit to satellite dishes. A dedicated satellite receiver (external set-top boxes or built into TV sets) decodes the television program.
Digital Terrestrial Television (DTT), sometimes known as direct-to-terrestrial television, is a type of television reception in which a signal is transmitted directly to a viewer's antenna rather than through a cable or satellite system. As a rule, HDTV signals are available through digital terrestrial television, and this type of television also makes better use of the radio spectrum.

Additional information:
Traditional TV Advertising comprises advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending and users. Figures are based on Traditional TV Advertising spending and exclude agency commissions, rebates, production costs, and taxes. For more information on the data displayed, use the info button right next to the boxes.

Market

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Currency

Analyst Opinion

The Traditional TV Advertising market in Brazil is experiencing significant growth and development. With a population of over 200 million people, Brazil is one of the largest markets for television advertising in Latin America.

Customer preferences: Brazilian consumers have a strong preference for traditional television as a source of entertainment and information. Despite the rise of digital platforms and streaming services, television remains the most popular medium for accessing news, sports, and entertainment content. This has led to a high demand for television advertising, as companies seek to reach a wide audience and maximize their brand exposure.

Trends in the market: One of the key trends in the Traditional TV Advertising market in Brazil is the increasing investment in local content. Brazilian television networks are producing a wide range of original programming, including soap operas, reality shows, and sports events. This has attracted advertisers who want to align their brands with popular and culturally relevant content. Additionally, there has been a rise in the use of product placement and sponsored content within television programs, as advertisers look for more subtle ways to reach consumers. Another trend in the market is the adoption of data-driven advertising strategies. Television networks and advertisers are leveraging data analytics to better understand their target audience and optimize their advertising campaigns. This includes using audience segmentation and targeting techniques to deliver more personalized and relevant advertisements. Additionally, there is a growing emphasis on measuring the effectiveness of television advertising through metrics such as reach, frequency, and engagement.

Local special circumstances: Brazil has a unique television landscape with a mix of free-to-air and pay-TV channels. Free-to-air channels, such as Globo, Band, and SBT, have the largest viewership and offer a wide range of programming options. Pay-TV channels, on the other hand, cater to niche audiences and provide specialized content. This diversity in the television market allows advertisers to reach a broad spectrum of viewers with different interests and preferences.

Underlying macroeconomic factors: The growth of the Traditional TV Advertising market in Brazil is also influenced by macroeconomic factors. Brazil is the largest economy in Latin America and has a growing middle class with increasing purchasing power. This has led to a rise in consumer spending, which in turn drives demand for products and services advertised on television. Additionally, Brazil has a strong advertising industry with a large number of agencies and creative professionals who work to develop innovative and impactful television campaigns. In conclusion, the Traditional TV Advertising market in Brazil is thriving due to customer preferences for television as a primary source of entertainment, the adoption of data-driven advertising strategies, the investment in local content, the unique television landscape, and the underlying macroeconomic factors. As the market continues to evolve, advertisers and television networks will need to adapt to changing consumer behaviors and preferences to effectively reach their target audience.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on traditional TV advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers non-digital formats such as terrestrial TV, cable TV, satellite TV, and linear TV.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights Global Survey) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, population, media consumption, number of households with television, and consumer spending.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.