L’Oreal, the world’s largest cosmetics maker, aims to double sales in Brazil by 2015 and add 50 million new customers there in the next decade as Latin America’s largest economy expands.
Brazil, already a top 7 country in the world measured on GDP, has a thriving media and advertising market worth $46 billion annually, according to IBOPE. The total advertising market in Brazil is forecasted by WARC to grow by 9 percent in 2010 in real terms (Jul-2010), with growth further driven by the Football World Cup of 2014 and the Olympic Games of 2016.
“The biggest growth engine is the expansion of the Brazilian middle class,” says Gaston Taratuta, founder and CEO of IMS, a Miami headquartered media solutions firm that helps companies expand into the Brazilian and Latin American markets.
“Since 2003, more than 32 million people in this country of 198 million have entered the middle class and about 20 million have risen above poverty”, says a report by the Center for Social Policies at the Getúlio Vargas Foundation, a Rio policy group that studies socioeconomic trends. “When the GDP grows media investment does also” Taratuta adds.