More than a few eyebrows were raised when Publicis Groupe forked out $100m for a 49 per cent stake in Brazil’s Talent agency last year (Talent employs about 230 people meaning they were worth nearly $1m each) but the French marcoms giant obviously likes what it’s seen, increasing its stake by 11 per cent to a 60 per cent majority holding.
According to Publicis Worldwide CEO Jean-Yves Naouri: “Brazil is one of the most promising markets in the world and Talent is one of the most accomplished agencies in Brazil. This partnership will fuel growth for both partners and signals Publicis Worldwide’s continued intent to build strength in fast moving BRIC markets”.
By BRIC he means Brazil, India, China and Russia the so-called big emerging economies (now well and truly emerged of course). Brazil is booming on a rising tide of energy production and industry and is the venue for the 2014 World Cup and the 2016 Olympics. Wieden+Kennedy is just one of many agencies to have increased its presence in the country recently.
Brazil is estimated to be the world’s sixth-biggest ad market currently with growth in each of the next two years forecast at around seven per cent.
Publicis Groupe has been wielding its cheque book to some effect recently, buying the Chemistry agency and digital and direct marketing specialist KitKatt Nohr in London. It has also made a series of small acquisitions in China and tidied up its operations in the Balkans and the Middle East.
It’s not all one-way traffic though; over the weekend it announced that it had sold its 50.1 per cent stake in leading UK PR firm Freud Communications back to founder Matthew Freud for an estimated £40m.