From the hand of multinationals are landing in Latin America and Spanish American consultants and Miami PR communications. For many large U.S. firms Public relations is strategically important region. Expect a strong growth within a very short time. Argentina, Brazil and Mexico are growing strongly and pushing the whole region. Since the appearance of the first regional networks.
From the hand of multinationals are landing in Latin America and Spanish American consultants and PR communications. For many large U.S. firms Public relations is strategically important region. Expect a strong growth within a very short time. Argentina, Brazil and Mexico are growing strongly and pushing the whole region. Since the appearance of the first regional networks.
When Interpublic bought the group in early 2000, Argentina’s PR consultant New Communication by a figure estimated at more than 23 million dollars, the public relations market in Latin America has entered a higher stage. Never before had paid so much for an agency in the region so remote. “Larry Weber (the man who carried on negotiations with New) is clearly the strategic importance of Latin America in the development of their business,” says Cesar Mansilla low profile in one of his rare statements on the record related to the sector. Mansilla continues as CEO and minority shareholder in charge of the consulting firm he founded and helps lead the Interpublic advanced in the business of public relations in Latin America.
For Interpublic, New Communication became his trademark to land in a region awoke to the world market for public relations. Consultants such as Burson-Marsteller, Hill & Knowlton, Porter Novelli, Ketchum and Fleishman Hillard for now they are getting between 5 and 10 percent of its total turnover in Latin America. However, most of the markets are growing at a faster rate even than in the U.S., so it is unlikely that this participation grows.
How long? David Drobis, chairman of Ketchum PR is very optimistic: “Four years ago we were predicting that the business of public relations would be very important in Latin America in about ten years. Today I think that time
come in just a couple of years. “Drobis prepares for when that time comes Ketchum has all the flags placed in key markets in the region. So far only had taken the step to acquire its U.S. Office and take a minority position in Costa Rica. In the coming months promise to close the purchase deal with affiliates in Brazil and Argentina.
But the reasons for a foothold in the region are not confined to local business growth. Rubén Aguilar, a Cuban-American who runs Ketchum’s business in Latin America, explains that there is a strategic reason: “The issue does not pass through the ten million dollars that are invoiced in the region today. The key is to be here, because otherwise, we could not retain many of the clients we have at home. ”
That is the philosophy that led to Burson Marsteller for over six years to open the largest network of offices in Sao Paulo (Brazil), Mexico, Chile, Argentina, Venezuela, Colombia, Guatemala, Panama and Puerto Rico. With a forecast turnover for 2000 of 20 million (against 16.5 million in 99) is the largest regional network. All these offices are directed from Miami, where the regional president, Santiago Hinojosa, has its headquarters.
From that city also operates the region Fleishman-Hillard offices in Mexico and Puerto Rico, and a network of representatives in almost all countries in the region. While it has faced problems with its affiliates in Buenos Aires, which began negotiating its sale with Hill & Knowlton.
The Weber Group, a leader in the technology sector of the United States, also based in Miami Advertising or Miami Marketing, as well as other PR consultant from the United States specializing exclusively in Latin America: The Jeffrey Group, led by former Sharlach Jeffrey Rowland. From the city of the state of Florida, seven years ago armed Sharlach an office network with a twist: serve only dealing with multinational companies in Latin America and promised “no divert resources to compete for local accounts.” With offices in Brazil, Argentina, Colombia, Venezuela, Peru, Mexico and Chile, achieved a turnover of 3.5 million last year.
Sharlach predicts that the three major markets in the region: Argentina, Brazil and Mexico will continue to provide the bulk of the business and be a locomotive for the PR of the entire region.
But not everyone is as safe as Sharlach that Miami is “the business capital of Latin America.”
Another consultant who will use Miami as a springboard to Latin America is Citigate Dewe Rogerson, the giant investor relations, which is reviewing soon open its regional headquarters there. Also from Miami, directs its Latin American operations IMS. In front of that consultant is the Cuban Mauricio Figueras. IMS has offices in Argentina, Chile, Colombia, Brazil, Mexico, Peru, Venezuela and Puerto Rico, in `99 revenues of $ 1,600,000.
Still others chose other locations to lead the region. Ketchum, which had its offices in Miami, moved its regional command to Atlanta.
Hill & Knowlton never left New York, and find good arguments for this: “Our customers believe that when New York’s financial center in the world, this was the best place to be and serve them better,” said Chilean Juan Capello, president and managing partner of Hill & Knowlton for Latin America. In addition, Capello added that there is nothing better than lead from where the head of the company,
in the Big Apple.
Hill & Knowlton took over that Burson-Marsteller to land with full force. But last year was launched to acquire consulting: its headquarters in Mexico, Argentina and Brazil was joined by one in Chile and one in Guatemala, and then concentrated on expanding the business in Argentina: months ago bought the castle, and the press time was about summaries Vox Consulting, an affiliate of Fleishman far in this country.
Capello explains the enthusiasm of Hill & Knowlton: “In percentage terms the region’s turnover in 1999 has grown more than any other for Hill & Knowlton. We have doubled the accounts of one year to another, and though remain the smallest region signature, are also the fastest growing. “According to Capello, the growth is healthy in most of the region and, therefore, “of course increase the communication needs, and in this context, the cost benefit, public relations have a great opportunity.”
However, not all PR consultants who are flourishing in Latin America run their businesses from the United States. Edelman PR moved its regional headquarters in Miami to Mexico City, where Gabriel Guerra Castellanos ensures proper Edelman offices in Buenos Aires and Brazil, where a total bill of $ 8 million, and affiliates in Chile, Venezuela, Colombia , Costa Rica and Panama.
Porter Novelli also chose to have their regional headquarters in Buenos Aires. There Juan Carlos Lynch, regional president, command offices in Buenos Aires and Mexico and is about to buy in Brazil in Press. But its network reaches ten offices in total.
War is convinced that the whole region will grow much economically, but the PR will grow even stronger in proportion. Especially his country, Mexico, is one of the most promising: “If the Mexican economy remains at a good rate of growth, companies will move their business projects, which will generate a positive climate for service providers like us” he says.
Guerra noted that President-elect Vicente Fox, who is generating the boom in Mexico, demonstrated during his ingenious campaign how to use PR effectively. “That will show the way for companies,” says and predicts that now enhance the credibility and role of media in his country, thus contributing to the growth of public relations.
The other country that is hoping for big business is Brazil. After the devaluation that plunged that country into a severe recession in ’99, started the year with a strong recovery. Hand in hand with new investments, it is expected that better surfacing now on the huge market potential that is almost a continent in itself. PR firms in the United States are already experiencing. BSMG, Ogilvy PR and Cohn & Wolfe rushed to buy local consultants.
The Argentine market, the most sophisticated and mature of the three largest in the region, is emerging slowly from the recession. Also approximates a second wave of landings PR consultants because, although economic growth is then expected, public relations do not stop there its dynamic progress.
These three economies will push the region into a strong growth and represent a great opportunity for the PR industry in the United States. PR consultancies in the U.S. not only can provide know-how and extensive global networks. Richard Edelman, president and CEO of Edelman PR, said recently during a visit to Argentina, “PR firms came to Latin America following the needs of its customers in the United States. Then they discovered that there were local corporations which offer services. But now, thanks to the Internet boom, the portals, but also the region’s traditional businesses, need PR services in the United States, where aspiring
collecting capital. ”
These companies are ahead than Europe, however some PR consulting the old world, like the French and Spanish Euro RSCG Llorente & Cuenca Hispacom, Sanchis & Asociados already discovered the secret of American consultants and rushed to catch customers in the region.
But all is not conquered by Americans or Spanish. Businesses are becoming more latinoamericanizados. MERCOSUR, the free trade association between Argentina, Brazil, Paraguay and Uruguay, did much to increase intra trade strong. So did the Andean and Central American countries.
We therefore also began to appear independent and informal network of consultants who come together to address accounts in several countries. The best example is the dot-com releases. Carlos Mazal Communication and Communication Gustavo Martinez, two Argentine consultants specializing in technology, they set up their own networks to meet and share accounts.
They appeared in the image and likeness of global networks of U.S. origin, as IPREX, Pinnacle or Worldcom. They have already begun to spread throughout the region. But in fact, among the independent consultants are constantly generating informal networks to exchange business to compete with large international consultancies.
The usefulness of, these regional associations of Cesar Mansilla clearly demonstrated, the CEO and president of New Communication. Before you sell your consultant to Interpublic Group, Mansilla assembled what he called the “Red America”, with a score of PR consultants in the region and Spain. Obviously, it was not wrong with that.
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