Analysis: How much of Latin American World Cup Advertising has been Sold Already?(Paid Article)
World Cup Advertising will amount to up to 10% of the Latin American Advertising market (approximately $20 billion a year). Most of it will translate into growth, industry observers tell Portada. However, some of World Cup Advertising will be taken out of other budgets and mediums (analysts talk about reduction in print advertising and an increase in online).
How much of World Cup Advertising has been sold and how much inventory is still on the table? Observers asked by Portada talk about a soft picture, relative to expectations, on the national level (e.g. Mexico, Chile and Argentina) and strength in Brazil and in panregional buys.
It’s a continuous bargaining. Media properties, particularly those that own the TV rights for the World Cup, are logically trying to sell space as high as possible. Advertisers play it cool and posture. In fact, many say they are only interested in advertising starting in July.
As a high executive in Mediaedge Miami tells Portada, compared to the last World Cup, what is striking is the growth of digital media. “At least 15% of budgets goes right into digital media”, she says. These dollars are spent in digital media properties owned by the TV companies (both open and Pay- TV) that own the TV rights.
On a national level, only 30% of inventories have been sold already. This is the case for Mexico, Chile, Argentina and Central America. Brazil, however, is a strong market with a higher ratio sold already.
On a panregional level, e.g. purchases in two or more Latin American countries mostly done out of Miami, the picture is much stronger with most of the inventory sold already.
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