PR Niblets

Sunday, December 2, 2012

PR, Social Media and Economic Growth in Brazil by Pedro Cadina

Note:  Pedro Cadina is founder and CEO of VIANEWS Communication, São Paulo, Brazil. VIANEWS is of three new firms to join as partners in FC's international network -- the PR World Alliance. This guest blog covers the Brazilian business, PR and social media environment.

Despite a smaller growth forecasted for this year, Brazil ends the second semester showing significant recovery and continues to be the focus of several companies that see enormous potential in the “B” of the BRIC (Brazil, Russia, India, China) economies.  In many cases, PR agencies represent the first door for companies willing to participate in Brazilian market.

The global brands in PR are present in Brazil but it’s the local Brazilian agencies that are the ones showing higher revenues and faster hiring.  Estimates show that there are around 1.200 public relations agencies in Brazil, the majority of them located in the Southeast region of the country where most of them are small and independent agencies. For the current year, the sector should invoice 2 billion reais (around $1 billion USD), representing 15.5% growth over 2011.  Steady growth over the last three years suggests that 2013 agency revenue will be 3 billion reais ($1.5 billion USD).

Support for the government market is the fast growing sector of PR in Brazil.  Revenues of Brazilian agencies are strongly generated by media relations (30%), followed by internal communications (30%) and corporate events. Social media (11%) and investors relations are both growing significantly.

A few weeks ago in São Paulo, VIANEWS brought together 40 communication specialists in order to discuss Public Relations and Digital Journalism.  The event provided insight on how public relations, media relations and social media should be addressed by the global companies coming to Brazil.  These are some of the highlights of the discussion:

·       Internet and data traffic show impressive figures in the country. Mobile data traffic should increase 19 times in Brazil by 2016, representing a volume equivalent to 717 million text messages per second. The mobile device sector is just beginning and should benefit from the assembling of Apple products in the country.
·       Brazilians love Internet and social networks and this is an important leverage for brand communications. With more than 80 million users connected, Brazil is already ranked amongst the seventh largest audiences, the fifth in  engagement and is the blogs leader (with Score). Following the US, Brazil has the largest number of accounts in Facebook and Twitter. Brazil has the fourth largest Google+ community.
·       Despite recent crisis in Europe and growth difficulties both in Japan and the US, Brazil should grow around 2% this year and recover its 4% growth rate by 2013. Brazilians haven’t been so optimistic for decades
·       This optimism was reflected this year Digital Journalism Study (Oriella). Almost 52% of interviewed Brazilian journalists pointed out that there will be an audience increase for their publications and 25% bet on a publicity increase.
·       Another important discovery in this study was that approximately 83% of journalists rely on public relations agencies to obtain and double check information.  For 18% of journalists, agencies are the first source they use to search for news.
·       It is impressive to observe the growth in the usage of video formats already available in the Brazilian media.  In 2010 and 2011 only 20% said they made use of video formats in their publications. This year, this number jumped to 44%.

At the end of the event, one of the participants asked me “What else do you think we should tell CEOs and directors of global companies that are willing to come to Brazil?”  My reply was, “Well, in addition to a strong industry and an increasing consumer market we also have beautiful beaches, sun and football all year round!!”

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