RIO DE JANEIRO — Brazil’s TV broadcasters are getting a boost from the government, which will invest 150 million reais ($51 million) in advertising over the next 12 months.
Even so, it may not be enough to offset the squeeze of an overall weak ad market.
Government advertising has been on hold since President Luiz Inacio Lula da Silva took office Jan. 1.
Now the government has awarded accounts to the Duda, Lew Lara and Matisse agencies after a public auction.
In addition to the federal government, four state-backed companies are expected to unveil plans for their own advertising.
“The federal government is the largest advertiser in Brazil. If it is not investing, the media market is affected,” said Jose Carlos Salles Neto, president of Meio & Mensagem, which tracks ad investment and conducts other research for its Intermedios report. “This investment will have an important, positive impact in the media market which is undergoing a difficult period.”
The broadcast networks will receive the bulk of the spend, predicts Carlos Ferrari, media director of research firm Ibope Media, estimating their share at about 58%.
Total advertising investment exceeded $3.3 billion in 2002.