Cracking Brazil

White Paper
Cracking Brazil
Understanding the Media
Landscape & Strategies for
Effective Communications
White Paper
Brazil: The Giant has Awoken!
The largest economy in Latin America and the seventh in
the world in terms of GDP has attracted the world's
attention because of its stable growth and development.
As well as being fertile ground for international
investments, because of its high interest rates, low
unemployment and the opportunities that are arising in
the wake of the 2014 FIFA World Cup and 2016 Summer
Olympics.
A welcoming and festive culture, exuberant tropical rain forests, majestic rivers that
slice the country from end to end, a legendary array of fauna, economic stability,
and growth. These are some of the factors that have recently drawn the world's
attention to Brazil, a country with growing international relevance that leaves no
doubt as to its importance in the realm of global communications strategies.
In this white paper, you will read about:
The current macro-economic scenario;
What is expected from the FIFA World Cup and Summer Olympic
sporting events;
The mass media scenario;
New Media;
How communication is carried out in Brazil;
The relationship between Brazilian journalists and social media; and,
How PR Newswire can help you to gain visibility in Brazil.
2
White Paper Cracking Brazil
The Macro-Economic Scenario in Brazil
Brazil is the largest country in Latin America and the fifth largest in the world in terms of territory
(equivalent to 47% of the South American landmass), and population (more than 192 million
inhabitants). It is the only Portuguese-speaking country in the Americas, and the largest in the
world, as well as being one of the most multicultural and ethnically diverse countries on Earth,
a result of its status as one of the leading immigrant nations in the world.
It has developed a stable, strong and growing economy. In 2010, while most of the world was
suffering under the global economic downturn, Brazilian Gross Domestic Product (GDP) grew
by 7.5%. Rich in natural resources, Brazil has been investing heavily in improvements in
infrastructure and the continuing growth of its middle class. Its extensive portfolio of natural
resources and its strong agricultural sector are the foundations for this consistent and
remarkable growth. Furthermore, Brazil can now meet all of its own fuel and energy needs.
“
In 2010, Brazilian GDP
grew by 7.5% and 27
million people moved
up into the middle to
high classes.
Source: PNAD.
”
Brazil has a broad consumer market that is experiencing vigorous
growth. Over the last five years, more than 24 million Brazilians came out
of poverty, and another 27 million moved up into the A, B and C social
classes (middle to high class). The average income of the Brazilian
population has increased steadily since 2004, while the income gap has
been reduced (six percentage points since 2001), according to data from
the National Survey on Residential Samples (PNAD). These advances
reflect the success of public policies focused on income distribution and
employment adopted in recent years.
The strength of the expanding domestic market has been key to
sustaining the economic growth of the country, even at the peak of the
global economic downturn.
Basic Facts on the Brazilian Economy:
The fifth mobile phone and PC market in the world.
The top global exporter of beef and chicken.
The second global exporter of soy.
The top global exporter of sugar and orange juice.
The fifth largest market and the sixth global manufacturer of automobiles; and,
The top global exporter and the second largest producer of ethanol.
3
White Paper Cracking Brazil
The 2014 FIFA World Cup and 2016
Summer Olympics
With about five million foreign visitors per
year, Brazil is the top destination for
international tourists in South America, and
second in Latin America.
According to an estimate by the Ministry of
Sports, the 2014 FIFA World Cup will add
$102 billion to the GDP of the country and it
will result in $18 billion in investments in
infrastructure, especially in the transportation
system and road networks. Approximately
3.7 million tourists, both Brazilians and
foreigners, are expected to bring in $5.2
billion over the course of the events.
In all areas, 700,000 permanent and
temporary jobs will be created. The 2016
Summer Olympics will also result in
significant growth for Brazilian tourism, with
an increase in the number of tourists
estimated at 15% above projections for 2015.
Brasil 2014 Slogan:
“All in one rhythm”
Rio 2016 Slogan:
4
“Live your passion”
White Paper Cracking Brazil
The Mass Media Scenario
Brazilian mass media is heavily focused on print and broadcast media, as well as news
agencies. In Brazil, it is normal for a single media group to control several types of outlets,
forming so-called "media empires". With the country taking on an increasingly significant role
on the international stage, it is not surprising that the influence of its media outlets is growing
among the different spheres of society.
Newspapers and Magazines
Brazil has approximately 4,000 print newspapers and at least 650 daily titles. Despite the
advance of new media - especially the boom of social media - print newspapers have
continued to grow, with an increase in the number of titles available on the market year after
year, based on the significant shift in the middle class. The Southeast region of the country,
particularly the state of São Paulo, is still where most media outlets are located.
Top Brazilian
Newspapers
JornaisThe
brasileiros
com maior
circulação no país
01
Super Notícia
MG
293.572
02
Folha de S.Paulo
SP
286.398
03
Extra
RJ
265.018
04
O Estado de
SP
263.046
S.Paulo
05
O Globo
RJ
256.259
06
Zero Hora
RS
188.561
07
Daqui
GO
163.568
08
Diário Gaúcho
RS
155.853
09
Correio do Povo
RS
149.260
10
Meia Hora
RJ
136.802
Source:
ANJ
(National
Newspaper
Association)
Fonte: ANJ (Associação Nacional de Jornais)
Free Daily Newspapers: In recent years, Brazil has seen the arrival of the free daily print
newspaper format, mostly distributed in public thoroughfares, such as traffic lights and
subway stations. In this category, the most important titles are Metro (around 150,000 copies),
Destak (circulation same as Metro), and Metrô News (120,000 copies). A quick and easy-toread broadsheet, this type of newspaper has quickly gained space in the Brazilian market.
Each newspaper has a specific target audience: Metrô is directed at a younger target, while
Destak and Metro covet the A and B social classes. Their respective strategies are based on
their points of distribution and the public that normally transits those points.
5
White Paper Cracking Brazil
Tabloids: Among the top-circulating titles in the
country, two that figure in the ranking have a strong
sensationalist appeal: Extra and Meia Hora, both of
which circulate in the state of Rio de Janeiro. While
in São Paulo, the major newspapers are all
extremely traditional. Rio, with its more irreverent
lifestyle, is fertile ground for the success of
sensationalist of publications.
Digital versions: Inevitably, Brazilian newspapers from major titles to neighborhood broadsheets - all
have their own websites and, in many cases, digital,
or at least digitalized versions, which enable them to
be read over the internet, with or without a
subscription.
Magazines: With regards to magazines, the major
publishers are mostly located in São Paulo, and 5 of
the magazines on the list of the major monthly titles
(below) target the female reading audience, an indication of the power of this segment of the
population.
Revistas brasileiras mensais com maior circulação
The Top Brazilian Monthly Magazines
no país
01
Nova Escola
437.099
02
Claudia
419.875
03
Superinteressante
362.494
04
Nova
240.401
05
Playboy
221.722
06
Quatro Rodas
221.556
07
Boa Forma
213.750
08
Manequim
211.856
09
Marie Claire
206.172
10
Guia Astral
202.636
Fonte:
ANER
Nacional dos
Editores de
Source:
ANER(Associação
(National Association
of Magazine
Revistas)
Publishers)
6
White Paper Cracking Brazil
Among weekly magazines, the highlight is the "varieties" segment, with Veja magazine,
published by the Abril Group, first in the ranking. Veja is certainly the most influential
magazine in the country and it is renowned for its articles that exert direct pressure on the
national political discourse.
Revistas brasileiras semanais com maior
The Top-Brazilian Weekly Magazines
circulação no país
01
Veja
1.088.191
02
Época
408.110
03
IstoÉ
338.351
04
Caras
335.152
05
Viva Mais
235.079
06
Ana Maria
229.284
07
Tititi
170.250
08
Contigo
160.425
09
Malu
141.928
10
Minha Novela
130.394
Fonte:
ANER
(Associação
Nacional dos
de
Source:
ANER
(National Association
ofEditores
Magazine
Revistas)
Publishers)
Television and Radio
Television is the communications media with the greatest coverage and the strongest appeal
for the population. Currently, more than 95% of Brazilian homes have television sets and,
despite the fact that the internet is potentially a direct competitor of televised media, the
influence that television has on Brazilian society is still very obvious.
TV programming in Brazil can be divided into two segments: Network TV and Pay TV. With
Network TV, the signal is sent by the broadcasters and captured by users free-of-charge, while
to gain access to pay TV, users need to pay fees (so-called subscriptions) and be equipped
with set-top boxes or special antennas.
Cable TV in the country has been growing about 30% per year. Currently, Brazil registers
approximately 13,4 million subscribers to the service, with the southeast region leading the
preference, with more than 8 million users. Main companies offering cable TV packages in
Brazil are NET, Sky and Embratel.
7
White Paper Cracking Brazil
Currently, Brazil has approximately 370 TV stations with the Globo Network as the
broadcaster with the highest audience ratings in the country, followed by Record Network,
SBT and Bandeirantes. Globo is also the broadcaster with the greatest geographical
coverage in the country: it can be picked up in 99% of Brazilian territory.
As a consequence of its strength, TV is where the greatest slice of advertising investments
is funneled.
TV audience segmented by gender:
Men
Women
Brazilian Programming: Programming on Brazilian network TV is varied, but the top ratings
are generally reserved for telenovelas, news programs and variety shows. The Brazilian soap
opera, or telenovela, industry is one of the strongest of its kind in the world, exporting its
productions all over the globe. Over the last 10 years, the country has also avidly taken to
reality television, with shows such as the local version of the Big Brother franchise attaining
consecutive audience peaks.
Radio also has great penetration in Brazilian homes - 90% of homes are equipped with radios.
There are more than 4,018 radio broadcasters in the country, operating throughout the five
geographic regions of the country.
Web-Based Radio: With the spread of the Internet, several websites are making their own
Web-Based Radio versions available. Traffic through these websites is intense, but traditional
radio broadcasting is still stronger in Brazil, especially in the large metropolitan areas, such as
São Paulo and Rio de Janeiro, where the population uses radio to obtain information about
nightlife options (bars, parties, restaurants) as well as traffic updates.
8
White Paper Cracking Brazil
News Agencies
Brazil has several branches of international news agencies within the country, such as Reuters
and Bloomberg. There are also important local agencies, such as the Estado Agency, the O
Globo Agency and the O Dia Agency. Brazilian newspapers tend to depend heavily on the
services of international new agencies for foreign news coverage. Newspapers based in
smaller population centers and other regions use the content of agencies in the Southeast
region to obtain information on major Brazilian news and financial events.
On-line Media
The Internet has an extremely important role in Brazil, where 78.5 million people are
connected in many different environments (homes, work, schools, LAN houses and other
locations), according to a survey carried out by IBOPE Nielsen Online.
The upward mobility of the so-called C social class (lower middle class) in Brazil is the main
driver of the increased access to the Internet. Between January 2011 and January 2012, the
number of people with Internet access at home jumped from 34.5 million to 39 million,
representing a growth of 14%.
Among the favorite websites for Brazilians are social networks and web portals, such as UOL,
Terra and Ig, as well as employment, map, tourism and classified advertisement websites.
Advertising on the Internet also started 2012 on a high. In January, more than 6,000 campaigns
were underway on-line, involving 2,124 different advertisers.
Mobile Internet
A study conducted by Huawei, a telecommunications company, in partnership with the
consulting firm Teleco, found that 48.6% of Brazilian urban centers have mobile Internet
services.
The uptake of mobile Internet in Brazil is greater than the worldwide average as there are more
mobiles in Brazil than Brazilians. With 3G access, the expectation is that in 2014 demand for
the service is expected to peak, the number of accesses may reach the 124 million mark.
9
White Paper Cracking Brazil
Social Media
Social media first appeared on the Brazilian radar in 2004, when Brazilians discovered
"Orkut", a website created by Orkut Büyükkökten, with the purpose of helping users find
new friends and maintain relationships with existing ones. Orkut was first launched in
English (February 2004), but it quickly achieved a massive cult following in Brazil in a
relatively short period of time, and soon Brazilians were the biggest users of the network
worldwide, pushing the Americans into second place. In April 2004, Orkut launched a
version of the website in Portuguese and in 2008 the head office of the social media
website was transferred to Brazil.
Currently, Brazilians make up the greatest number of Orkut users, representing more
than 50% of all the network's users. In second place is India (20%), followed by the USA
(17%).
Twitter appeared in Brazil in 2009, being used mainly by young adults aged between 25
and 35 years old and corporate entities. Twitter, however, did not cannibalize users from
Orkut; actually, it was common for people to have accounts on both networks, for
different purposes.
Facebook only burst onto the scene in Brazil in 2010, but it was quickly adopted by a large
percentage of the population. In 2011, the number of Brazilian users of the site increased
by 156% and, accordingly, Facebook has surpassed Orkut in the country in terms of
popularity.
10
White Paper Cracking Brazil
Brazilian Journalists and Social Networks
PR Newswire carried out a survey in 2011 to
ascertain how Brazilian journalists were using social
networks in their professional routines. When it
comes to participation in social networks, journalists
prefer variety.
The PR Newswire survey found that most of them 31.8% - are active on 3 different social networks.
This result is closely followed by those who indicated
that they are active on more than 3 different social
networks (30.5%). Only 3.6% said they didn't take
part in any social network.
Social networks, based on relationships and
information exchange, have become a channel for
journalists to find sources. When questioned if they
used social networks to contact their sources, 79.7%
said yes, while 20.3% said they didn't.
Besides providing support material for producing
their articles, social networks are also a source of
information for journalists. 83.3% of participants in
the survey admitted to having used information from
social networks (such as a trending topic on Twitter)
in order to base an article.
11
White Paper Cracking Brazil
Bibliography
Economia do Brasil. Accessed on: 11 April 2012, at:
http://pt.wikipedia.org/wiki/Economia_do_Brasil
Brazil Economy Overview: Accessed on 11 April 2012, at:
https://www.cia.gov/library/publications/the-world-factbook/geos/br.html.
Why invest in Brazil [in Portuguese]: Accessed on 11 April 2012, at:
http://www.investirebrasil.com/pt/porque-investir-no-brasil
"All in one rhythm" is expected to be the slogan of the 2014 FIFA World Cup, says website [in Portuguese];
Accessed on 11 April 2012, at:
http://www.portal2014.org.br/noticias/9506/ALL+IN+ONE+RHYTHM+DEVE+SER+O+
SLOGAN+DA+COPA+DE+2014+DIZ+SITE.html.
International tourism targets will be met [in Portuguese], Accessed on 11 April 2012, at:
http://www.dadosefatos.turismo.gov.br/dadosefatos/geral_interna/noticias/detalhe/20110902.html
Why invest in Brazil [in Portuguese]: Accessed on 11 April 2012, at:
http://www.brasilglobalnet.gov.br/Investimentos/P/InvestirnoBrasil.aspx.
Tatto, Carla; Free daily newspapers take over the streets of São Paulo [in Portuguese]: Accessed on
11 April 2012, at: http://pucjornalmc.wordpress.com/2007/09/20/jornais-gratuitos-invadem-as-ruasde-sao-paulo.
Associação Nacional de Jornais, Accessed on 14 April 2012, at: http://www.anj.org.br/a-industriajornalistica/jornais-no-brasil/maiores-jornais-do-brasil.
Associação Nacional de Revistas, Accessed on 14 April 2012, at:
http://www.aner.org.br/Conteudo/1/artigo42418-1.asp and
http://www.aner.org.br/Conteudo/1/artigo42424-1.asp
Mídia Dados, Accessed on 14 April 2012, at:
http://midiadados.digitalpages.com.br/home.aspx?edicao=3
Metade das cidades brasileiras já tem acesso à internet-móvel, diz estudo, Accessed on 14 April
2012, at: http://tecnologia.uol.com.br/ultimas-noticias/redacao/2012/03/20/quase-cinco-em-cada-dezcidades-no-brasil-ja-dispoem-de-internet-movel.jhtm
Estadão, Accessed on 14 April 2012, at: http://blogs.estadao.com.br/link/tag/ibope/
12
White Paper Cracking Brazil
About PR Newswire
PR Newswire (www.prnewswire.com) is a major global supplier of multimedia platforms that
enable communications and marketing professionals, sustainability and public relations firms
and investor relations professionals to leverage content in order to be able to interact with all
their target audiences anywhere in the world. As a pioneering company in the news
distribution sector for 58 years, PR Newswire currently offers point-to-point solutions to
produce, optimize, direct and distribute content and then to measure its results by means of
traditional, digital, portable and social channels. Combining the greater distribution of
worldwide multichannel and multicultural content and the optimization of connections with
wide-ranging workflow tools and interactive platforms, PR Newswire enables companies all
over the world to create opportunities anywhere they desire. PR Newswire serves tens of
thousands of clients from their offices in the Americas, Europe, the Middle East, Africa and the
Asia-Pacific region. It is a company of UBM plc (www.ubm.com).
About PR Newswire in Brazil
PR Newswire has been active in Brazil for 12 years, creating a relationship network with
journalists and financial analysts. The distribution network of releases for the Brazil circuit
includes 2,100 media outlets, with 14,000 registered journalists and financial analysts in its
data base, and more than 400 websites that receive content directly and indirectly, as well as
four news agencies transmitting information via terminals. The circuit also includes the
posting of releases in PR Newswire partner communications outlets in the country, such as:
Four News Agencies:
Estado Agency ▪ O Globo Agency ▪ Bloomberg ▪ Multiagências
Publication of Releases on more than 80 partner Websites, such as:
UOL ▪ RAC (Anhanguera Communications Network) ▪ Yahoo! Brasil ▪ Metro News ▪ Prima
Página ▪ Top Blog ▪ Busk.com ▪ APIMEC RJ ▪ APIMEC SP ▪ APIMEC SUL ▪ APIMEC MG ▪ UM
Investimentos ▪ Consumidor Moderno
Our portfolio of services includes 24/7 distribution anywhere in the world, news monitoring all
over Latin America, image auditing, IR services, webcasts and multimedia tools to expand
visibility and increase the potential interest of the target audience in releases.
13
+55 11 2504-5100
www.prnewswire.com.br
www.prnewswire.com
Copyright © 2012 PR Newswire Association LLC. All Rights Reserved.