Portada Magazine Brazil : Page 2

BRAZIL tination to São Paulo. Mariano sees Banks, Airlines, Destinations and Convention Centers as the strongest ad-categories for international advertis-ers investing in Brazil. As corporations include Brazil in their growth plans they are more likely to establish an in-country presence and hire a local agency. However, many international agencies still support their local Brazilian subsidiaries by advising multinational companies on a “consultant-strategic role” says Virginie Haemmerli, International Group Account Director at OMD, in New York. This happens when the Brazilian market is included in Latin American – panregional buys. This is the case of General Electric and Pepsi, both OMD New York City based accounts, Visa (San Francisco) as well as Johnson & Johnson. Other Latin American countries are also important decision making points for buying into Brazilian media. Enrique Tron, Communication Channels Director at Unilever Mexico, tells Portada that Unilever has three regional hubs. “Each of these hubs markets a set of Unilever brands panre-gionally. One hub is in Mexico City, which I lead. The brands we market include Knorr, the Ice Cream Business unit and Soy Beverages. The second regional hub is managed by Maria Luisa Lopez out of Brazil. Maria Luisa oversees brands such as Hellmann’s mayonnaise and home care brands. The third hub is in Argentina and has strong personal care brand component. This hub is led by Ezequiel Jones. These three hubs work together and provide local market intelligence.” Brazilian largest magazine publisher Editora Abril was founded in 1950 by Victor Civita. Its titiles include Veja , Nova , the Brazilian Editions of Cosmopolitan , InStyle , Playboy , National Geographic , Men’s Health as well as busi-ness magazine Exame , Info PME and voces/sa . It also owns the Brazilian MTV and cable company TVA. To address the needs of the emerging Brazilian middle class Abril recently launched Maxim , and home Improvement maga-zine Mia Casa . It also introduced women’s magazine Lola as well as men’s magazine Alpha (fashion, lifestyle). STRONG DIGITAL GROWTH The Brazilian online market has been growing at a very high rate, both in advertising volume and in sophistication. Ricardo Mariani, International Advertising Manager at Editora Abril tells Portada that in only two years dig-ital revenues of Editora Abril have increased from 1% to 10% of total rev-enues to $70 million in 2010. Pedro Cabral, the Chairman of Isobar Global (Aegis Media Group) and founder of digital agency Agencia Click which was bought by Aegis in 2007, tells Portada that he expects the Brazilian digital dis-play and search market to grow at dou-ble digit rate over the next few years. It is precisely the access to the Internet of the emerging middle class (Class C) that is increasing the appeal of digital media to marketers and advertisers. Over the past three years, more than 45 million Brazilians who now belong to the new middle class began to access the Internet. Carat Mexico, which recently won the pan-regional account for Electronic Arts (EA), the world’s largest distributor and producer of (continued on page 22 ) BIG BETS BY FOREIGN PLAYERS International Newspaper Group Metro International launched a new edition in Rio de Janeiro last October. The Rio edition has a distribution of 100,000 daily copies from Monday to Friday which is hand delivered by distributors at strategic loca-tions to reach the target audience. Together with Bandeirantes, Metro’s local partner, Metro initiated the Brazilian expansion in Sao Paulo in 2009, using the Sao Paulo operation as a hub to generate operating synergies. As the second largest market after Sao Paulo, Rio de Janeiro follows as the logical next step. Metro’s total circulation in Brazil after the launch will amount to 330,000 daily copies. Latin America only made up 2% to 3% of Google’s massive $29.3 billion annual revenues in 2010, but Google’s Executive Chairman Eric Schmidt considers “it will become a much larger percentage very quickly. “Brazil is already on its way to becoming our sixth-largest country in revenue”, Schmidt said at a recent trade show. Brazil is the only market in which Google, through Orkut, has managed to beat Facebook in the social media sphere. “Having lost its lead in India, Orkut now holds on to Brazil as its last strong-hold, where its 32.7 million users outnumber those in Zuckerberg’s network by nearly a 3-to-1 ratio.” American pay-TV operator Direct TV last year increased its stake in Sky Brazil to 93% in an operation valued at around $605 million. Globo, Brazil‘s leading broadcaster, will maintain a 7% share in the operator. Spanish magazine publisher Hola launched a Portuguese ver-sion of its weekly glossy Hola! Brasil last June. The new magazine, like its other editions, features a combination of the most influ-ential people and celebrities. The Financial Times recently launched Brazil Confidential, a new premium digital research service offering exclusive analysis and insights into one of the world’s most exciting emerging markets. Spanish online company Weblogs , which currently publish-es MotorPasion and tRrendencias in Brazil, plans to launch 4 to 6 new publications this year in the Latin American market. The company’s expansion plans are a direct result of the Internet’s dizzyingly rapid growth in this market, and especially of ad spending in digital media, says Julio Alonso, founder and CEO of Weblogs. In 2009 Billboard launched Billboard Brazil magazine -a monthly publication for Brazilian music fans. The magazine is published by BPP Promocoes e Publicacoes LTDA, and features Billboard charts as well as in-depth editorial coverage of news and artists across all genres of music. Among ad agencies, Young & Rubicam had revenues of US$ 3.1 billion, ahead of the other top-10 leaders JWT , BBDO, Almap , WMcCann , Euro RSCG Brazil , Borghi/erh/Lowe , Africa , Z Mais and DM9DDB Neogama. Publicis Groupe took a 49% stake in the Talent Group, a 260-person communications firm in Brazil. It houses two agencies: Talent and QG Propaganda. European company LeadMedia Group bought 100% of Brazilian performance mar-keting agency Media Factory, a subsidiary of Venture Capital Ideiasnet, for R$8.9 million. The share was bought from Ideiasnet (an open capital venture capital company that operates on the technology market). Razorfish, the digital agency owned by Publicis, opened a Brazilian office in 2010. 20 | Q3 2011 | www.portada-online.com/LatinAmerica

Big Bets By Foreign Players

International Newspaper Group Metro International launched a new edition in Rio de Janeiro last October. The Rio edition has a distribution of 100,000 daily copies from Monday to Friday which is hand delivered by distributors at strategic locations to reach the target audience. Together with Bandeirantes, Metro’s local partner, Metro initiated the Brazilian expansion in Sao Paulo in 2009, using the Sao Paulo operation as a hub to generate operating synergies. As the second largest market after Sao Paulo, Rio de Janeiro follows as the logical next step. Metro’s total circulation in Brazil after the launch will amount to 330,000 daily copies. Latin America only made up 2% to 3% of Google’s massive $29.3 billion annual revenues in 2010, but Google’s Executive Chairman Eric Schmidt considers “it will become a much larger percentage very quickly. “Brazil is already on its way to becoming our sixth-largest country in revenue”, Schmidt said at a recent trade show. Brazil is the only market in which Google, through Orkut, has managed to beat Facebook in the social media sphere. “Having lost its lead in India, Orkut now holds on to Brazil as its last stronghold, where its 32.7 million users outnumber those in Zuckerberg’s network by nearly a 3-to-1 ratio.” American pay-TV operator Direct TV last year increased its stake in Sky Brazil to 93% in an operation valued at around $605 million. Globo, Brazil‘s leading broadcaster, will maintain a 7% share in the operator. Spanish magazine publisher Hola launched a Portuguese version of its weekly glossy Hola! Brasil last June. The new magazine, like its other editions, features a combination of the most influential people and celebrities. The Financial Times recently launched Brazil Confidential, a new premium digital research service offering exclusive analysis and insights into one of the world’s most exciting emerging markets. Spanish online company Weblogs, which currently publishes MotorPasion and tRrendencias in Brazil, plans to launch 4 to 6 new publications this year in the Latin American market. The company’s expansion plans are a direct result of the Internet’s dizzyingly rapid growth in this market, and especially of ad spending in digital media, says Julio Alonso, founder and CEO of Weblogs. In 2009 Billboard launched Billboard Brazil magazine - a monthly publication for Brazilian music fans. The magazine is published by BPP Promocoes e Publicacoes LTDA, and features Billboard charts as well as in-depth editorial coverage of news and artists across all genres of music. Among ad agencies, Young & Rubicam had revenues of US$ 3. 1 billion, ahead of the other top-10 leaders JWT, BBDO, Almap, WmcCann, Euro RSCG Brazil, Borghi/erh/Lowe, Africa, Z Mais and DM9DDB Neogama. Publicis Groupe took a 49% stake in the Talent Group, a 260-person communications firm in Brazil. It houses two agencies: Talent and QG Propaganda. European company LeadMedia Group bought 100% of Brazilian performance marketing agency Media Factory, a subsidiary of Venture Capital Ideiasnet, for R$8.9 million. The share was bought from Ideiasnet (an open capital venture capital company that operates on the technology market). Razorfish, the digital agency owned by Publicis, opened a Brazilian office in 2010.

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