Google, Meta, and YouTube Retain Budget Share, While Mercado Livre, Magazine Luiza, and Americanas Expand Performance-Led Retail Media Reach

Brazil’s digital ad market offers key opportunities in emerging channels like retail media, short-form video, and programmatic audio. AI in ad creation and media optimization is expanding, while gaming and immersive formats are gaining traction. Local platforms are rising, with regulatory pressures enhancing data transparency.

Brazilian Digital Ad Spend Market

Dublin, Feb. 10, 2026 (GLOBE NEWSWIRE) — The “Brazil Digital Ad Spend Market Size & Forecast by Spend Value Across 100+ KPIs by Type of Advertising Channel, Format & Media, Platforms, Pricing Models, Industry, Digital Ecosystem, and Media Buying Method – Databook Q1 2026 Update” report has been added to ResearchAndMarkets.com’s offering.

The digital ad spend market in Brazil is expected to grow by 11.6% annually, reaching US$19.28 billion by 2026. The digital ad spend market in the country has experienced robust growth during 2020-2025, achieving a CAGR of 10.0%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 13.5% from 2026 to 2029. By the end of 2029, the digital ad spend market is projected to expand from its 2025 value of US$17.28 billion to approximately US$28.21 billion.

Brazil’s digital ad ecosystem is undergoing notable shifts, with growth concentrated in newer channels such as retail media, short-form video, and programmatic audio. AI-powered automation is also gaining ground across creative and media workflows. As the landscape matures, advertisers will likely move toward more outcome-based planning, balancing experimentation in new formats with investments in scalable, measurable platforms.

Brazil’s digital advertising market is becoming more fragmented and competitive, with new players entering through commerce, telecom, and specialized AdTech verticals. While global platforms maintain scale advantages, local ecosystems are emerging as strong contenders through data-led performance models and audience reach. Regulatory oversight is also playing a growing role in shaping platform differentiation and advertiser strategy, setting the stage for more structured, privacy-conscious innovation over the forecast horizon.

Platform dominance is shifting toward local commerce ecosystems

• While global platforms such as Google, Meta, and YouTube continue to command a significant share of ad budgets, Brazilian commerce ecosystems particularly Mercado Livre, Magazine Luiza, and Americanas are gaining advertiser attention due to their growing retail media offerings.

• These platforms are leveraging their transactional data and shopper insights to offer performance-driven ad placements. As their ecommerce reach widens across Brazil’s interior markets, their competitive influence in the ad ecosystem is expanding.

Media conglomerates and telecom players are investing in adtech

• Companies such as Globo have invested in proprietary digital ad solutions like Globo Ads, which offer programmatic video inventory and audience segmentation across their digital assets. Similarly, telecom operators in Brazil are expanding into digital advertising through first-party data monetization, with TIM leading this shift via its TIM Ads platform, which uses telecom data to support targeted advertising across its digital ecosystem.

• These moves are reshaping the competitive dynamic by introducing cross-platform alternatives to global walled gardens. The scale and trust of these local media owners offer a credible alternative to multinational platforms.

Emerging players are targeting niche formats and regional advertisers

• New entrants are focusing on formats such as digital out-of-home (DOOH), audio, and influencer marketing, especially in Brazil’s mid-tier cities. Players such as Outernet and regional influencer platforms are building specialized offerings aimed at local advertisers seeking cost-effective reach.

• These entrants are lowering barriers for regional brands and SMEs to access digital advertising, particularly via self-serve tools and performance-based pricing models.

Strategic collaborations are shaping multi-format advertising solutions

• Partnerships are emerging between retail media platforms and measurement/attribution providers. For instance, major ecommerce platforms are integrating with third-party analytics firms to offer advertisers end-to-end visibility across the conversion funnel.

• Similarly, agencies are partnering with gaming and CTV platforms to co-develop immersive and video-led ad solutions. These collaborations are indicative of how the competitive field is moving beyond media buying into ecosystem integration.

Retail media and marketplace-driven advertising is gaining traction

• Retailers and marketplaces in Brazil such as Mercado Livre and Magazine Luiza are developing closed-loop advertising ecosystems. These platforms are using first-party customer data to offer targeted placements across their shopping environments, especially on mobile apps and onsite banners.

• The growing reach of ecommerce in Brazil, accelerated by widespread digital payment adoption and regional logistics improvements, is prompting advertisers to reallocate budgets toward retail media platforms. The ability to link media exposure to actual purchases is a major driver.

• Over the forecast period, Brazil’s retail media space is expected to become more structured, with major retailers building dedicated adtech stacks or partnering with global firms. This trend is likely to intensify as traditional display formats lose performance share to commerce-based touchpoints.

Short-form video platforms are drawing brand investments

• Platforms such as TikTok, Kwai, and Instagram Reels are capturing growing attention from advertisers in Brazil. These formats are driving content creation and consumption across urban and younger demographics, with strong traction in influencer-led campaigns.

• The rising creator economy, combined with Brazil’s high mobile internet usage and content-sharing culture, supports this shift. Additionally, local brands are testing performance-focused video ad solutions embedded within short-form platforms.

• Over the next few years, investment in short-form video is expected to deepen. However, measurement capabilities and brand safety controls will determine the pace at which larger advertisers commit long-term budgets.

Programmatic adoption is growing beyond display into video and audio

• Programmatic buying has evolved in Brazil beyond basic display banners to cover video and digital audio formats. Platforms such as Globo Ads and Spotify are offering programmatic access to their inventory, allowing for automated, data-driven media planning.

• This is being driven by advertiser demand for greater targeting precision and budget efficiency, especially in dynamic sectors like automotive, retail, and finance. The rollout of local DSPs and agency trading desks has also supported this growth.

• Over the forecast horizon, programmatic video and audio are expected to see stronger uptake from mid-size and regional brands, particularly if transparency and ROI benchmarks continue to improve.

AI integration in ad creative and media optimisation is expanding

• Brazilian digital agencies and platform partners are increasingly deploying AI for dynamic creative optimisation (DCO), predictive bidding, and contextual ad placement. Large advertisers in categories such as telecom, consumer electronics, and fintech are experimenting with AI-powered campaign planning.

• The driver behind this trend is the growing availability of localized AI tools and automation services from global players like Google and Meta, along with Brazilian martech startups.

• Over time, AI integration is expected to become more widespread across media operations, especially in performance and retail-led campaigns. However, regulatory and ethical oversight around algorithmic ad delivery may emerge as a counterbalancing force.

Gaming and immersive environments are being explored as emerging ad channels

• Brazilian advertisers are starting to test immersive ad formats within mobile games and virtual experiences. Local esports platforms and game publishers are opening up branded integrations, while agencies are piloting campaigns inside metaverse-style environments.

• This shift is supported by Brazil’s strong mobile gaming market and the increasing cultural influence of gaming communities. FMCG, fashion, and auto brands are among the early adopters.

• While still nascent, immersive advertising is expected to develop slowly but steadily, with select sectors adopting early while others wait for clearer ROI validation and audience measurement tools.

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