a r t i m e d i a

Wednesday, July 24, 2013

Soccer and Carnaval

And if you thought it was only about the World Cup, think again… 

If you are a bit connected to news and trends in general, you know that Brazil has become one of the growing economies of the world and that long ago has lost the stereotype of a poor third world country filled with beautiful women, beaches, soccer players and people who only think about Carnaval the whole year. Of course Brazilian women are still well known for their beauty, beaches are still there attracting loads of tourists every year and soccer players are still the best in the world. Ok, maybe I am impartial to talk. I am Brazilian. For this reason I have the right of saying that not every Brazilian likes Samba or soccer. But it’s in our culture, no doubt about it.  We say in Brazil that “politics, religion and soccer should not be discussed.” So, let’s talk about the online video market and its amazing growth.

Well, soccer has something to do with it. The two biggest sporting events of the world will be hosted in Brazil in the next 2 years: The FIFA World Cup will happen in 2014 and the Olympics will happen in 2016, generating investments around 30 billion dollars in infrastructure and technology by the country’s government. Not only due to that, but also, investments in broadband internet in the next 4 years are predicted to be around 9 billion dollars. Brazil is currently considered the 5th biggest internet market of the world and these two major events come only to improve the online Brazilian scene and accelerate a process that was already fast.

Better picturing it: in 2012, 12 billion dollars were spent online by Brazilian consumers, what led to spending equal to 3.62 billion dollars in digital advertising in Latin America. This means an impressive growth of 112% in only 4 years. Impressive but not surprising: Brazil is well known in worldwide advertising as one of the most creative countries when regarding communication in general: Brazilian Advertising Agencies won 114 Lions at the last Cannes Festival, the biggest Advertising Award of the World. The internet is the second biggest media in Brazil inside the advertising scope and by 2014 Latin America will be the second biggest market of the world regarding digital advertising spent and investments.

The 7th Best Market of the World

All these predictions lead to another great scenario: online videos are automatically on the top of the pyramid of this big advertising revolution. In 2012 online video had a growth of 18%. 43 million people watch videos every month, meaning an average of 129,3 videos watched annually per unique viewer. The country is considered the 7th best market of the world for online video and this is only the beginning… Penetration in Brazil is 82.2%, a bit lower than the world average of 84%. All of these great numbers put Brazil among the best 10 markets of the world for online video.

But as a growing and potential market, there’s still a lot to be done: while Brazilian advertising agencies are well known for their expertise and know-how, there are still few ad networks and video ad technology companies to back up and offer what the market needs.  Video technology still walks with weak legs, and as demand grows, hopefully options will grow proportionally. The main used format is still pre-roll, content is still obscured in many cases, breaks are more than common and bad connection is the biggest issue internet users face.  Brazilian netizens are on their way to refine their online taste and as this happens, naturally they will demand more and the market will be obligated to supply options in order to keep the interest of consumers and the revenues high.

But if there is a lack of some technologies, there is an abundance of other resources: production is highly recommended and there are plenty of high-level professionals: the country is well known not only for advertising but for cinema worldwide. ANCINE, the Brazilian Association of Audiovisual Production, just launched a promotional animation incentivating international companies to come and use Brazilian resources and manpower and showing the advantages of the country for this segment.  Of course sometimes we still fall into the clichés: beautiful women, beaches, samba and soccer – but more than the stereotype, the movie shows that we are talking about a market of 23 million dollars/year advertising, plenty of cosmopolitan cities and boiling culture, professionals and creativity. 

The “Brazilian Way”

Talking about creativity, probably that’s the spice that allows Brazil to stand out and do the best with the available tools (the famous “Brazilian way” – yes, it exists and we have it). A good example is the video that won the Grand Premium Titanium, the biggest award in Cannes: created by Ogilvy Brasil, the three-minute commercial was conceived especially for the internet. The short movie shows the difference between the self-image of real women and how people see themselves through someone else’s eyes. Emotional and highly viral, it’s the most shared commercial of the year, and has over 50 million views on YouTube.

Brazil is on top of the wave and cannot (and should not) be ignored. Not only the two major sporting events that will happen in the next two years and that will generate an increase in the revenue of the country in general and in advertising specifically, but the country itself, which is a boiling pot of cultures and people eager to teach and learn with the globalized world. Just note the last major event, about a month and a half ago, seen on all news around the world: the protests against corruption when millions of people gathered in the main cities of the country. The information, the invitations to each protest, the people's voice, everything was spread mainly through social networks. Makes me think that if the internet can work also as a tool of democracy in a country where there is a need for that, we are on track.


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