Jose Borghi has some interesting insight into the growth of marketing and media around the world. He takes a look at a major survey conducted by Price Water House Coopers called Global Media and Entertainment Outlook 2016-2020. It analyzes revenue and growth of advertising and media across the world and provides projections for the future.Mr. Borghi states that media and entertainment will see an average annual growth of about 4.4% until 2020. By that time, the Price Water House Coopers survey says that the market segment will be estimated at over 2.4 trillion dollars worldwide. Brazil has a little different picture. The PWHC survey projects that Brazil will see annual increases in media and entertainment at around 6.4% annually into 2020. This is about a 2% higher margin that the rest of the world on average.
So what are the factors behind Brazil’s higher than average growth in advertising and entertainment media? There are several points out Mullen Lowe Brazil. They include big investments by firms into television and video advertisements. Increasing access to the internet and TV for Brazil’s rural communities will also play a big factor in driving marketing and entertainment growth in Brazil. Price Water House Coopers’ survey estimates that by 2020 Brazil’s entertainment and advertising industry will generate almost $49 billion dollars in revenue.
The biggest factor by far though says Jose Borghi is the increasing digital presence in Brazil. Most of the growth in Brazilian advertising will be driven by online advertising according to Alexandre Eisenstein who heads the Price Water House Coopers survey in Brazil. As more and more consumers are shopping online, advertisers are naturally shifting towards that medium as well. As a result we see more and more money being pumped into online marketing on digital newspapers, YouTube videos and even social media.
Jose Borghi also points out that projections last year for media and advertising growth was higher than the current forecasts made in 2016. It is nothing to worry about says Jose Borghi, the CEO of Brazilian advertising agency, Mullen Lowe. This has mostly to due with the devaluation of the Brazilian real against the American dollar. The real has been overvalued for quite some time and it is finally beginning to stabilize and have its real value shown.A weakening Chinese economy is also to blame as it is a major trade partner of Brazil. While revenues may be down due to a weakened Brazilian real, the industry is still expected to garner strong growth says Jose Borghi. Digital advertising and media will especially see very high growth rates upwards of up to 10% or more annually. That is something that should not be overlooked.