We are part of a high-scale and relevant growth market.
In absolute terms, Magna Media Forecast estimates that OOH earned R$ 2.2 billion in 2019 in Brazil, and will earn R$ 1.8 billion in 2020, down by 18% year on year mainly due to lockdowns during the pandemic. Pre-pandemic revenue is expected to return in 2023, considering the total OOH market, which includes static and digital panels. The digital OOH segment, which accounts for 40% of the total OOH revenue, earned R$ 900 million in 2019 and was impacted less by the pandemic, down by 11% in 2020. This segment should recover 2019’s revenue in 2021. In 2024, digital will account for 52% of total OOH revenue in Brazil.
Total and digital OOH revenue in the Brazilian market (R$ billion).
For the coming years (2020 to 2024), an increase in investments in advertising in Brazil is expected in 2 segments: smartphones and digital OOH, which will cause a sharp increase in their market share compared to other media.
The OOH sector in Brazil has low penetration in the advertising market as a whole, especially when compared with other regions in the world. According to Magna Media Forecast, in 2019, Brazil had a penetration of 4.2% for the total OOH segment, while regions such as Latin America (6.9%), Central and Eastern Europe (8.0%), Asia and Pacific (8.3%), and Western Europe (6.7%) had significantly higher penetration. This explains the under-penetration of OOH in Brazil and its potential for future growth as the country becomes more developed.
Penetration by the otal OOH segment in 2019: Brazil compared with other regions (%)