Investment in advertising drops by 22 percent in Q1 2020

Investment in advertising drops by 22 percent in Q1 2020
Photo: Feng Yu/Shutterstock

Investment in media advertising fell by 22 percent in Q1 2020, a report released by news website Poder360 found. According to the publication, total spending decreased to BRL 2.95 billion (USD 590 million) in comparison to BRL 3.79 billion in Q1 2019. 

Print is the worst-hit medium, experiencing a 41-percent drop, followed by cable TV and internet, with a 30.3- and a 29.6-percent decrease respectively. Cinema was the least impacted medium with a 13-percent decrease in investment, although specialists estimate that advertising might reach close to zero in Q2 2020 due to the impacts of the pandemic on the functioning of movie theaters. No theaters are currently open in Brazil.

In an April 18 editorial, The Brazilian Report editor-in-chief Gustavo Ribeiro explained that despite the impact of the Covid-19 crisis on media business models around the world, we have developed new ways to “protect our brave journalists that try, day in, day out, to explain Brazil to foreign audiences.”