There’s a match to watch in Brazil and it’s not the Olympics

There’s a match to watch in Brazil and it’s not the Olympics

Something is happening between the advertising industry and the startup scene in Brazil. The past year was weird for the economy and politics in general, even more for the creative advertising industry

Agencies have suffered all months. Who did not hold up tight, has closed the doors. Some had to join others, sell or reinvent themselves, at the same time as great creative leaders began to “retire”, making room for a young generation.

In fact, crisis was already an issue back in December 2014, right after the World Cup. Chatting with VPs and Creative Directors, everyone says that projects have been shelved or delayed. It resulted in a 2015 of trivial advertising projects with tight budgets, no risk and small teams.  

Most of the innovative ideas, like this smart toy for Nivea created by FCB Brazil came for the Cannes Lions awards season. That’s the same agency that won big in 2014 with a wearable bracelet and a mobile app for tracking kids. 

The problem is that, when projects are made for the awards season, eventually it will impact only the industry itself.

Cannes Lions awards

Source: Cannes Lions

Then we take a look at the startup and tech scenes and there is no crisis at all.  

Things in Brazil and Latin America are going pretty well, despite all challenges. The currency devaluation seems to make time to accelerate, invest or take risk in new ideas, products and services from internet of things to platforms and new business models.

Recently, 301, a small and very young startup, has partnered with the biggest Brazilian communication group Grupo ABC. Some days after the announcement, the group was acquired by the Ominicom Group.

301 has become the very first startup within the group, in a clear movement toward the future. Their business model are based on strategy for videos on social media platforms and the revenue is based in performance. In other words, they are only paid if the videos goes well.

That’s something most advertising agencies aren’t prepared for. Many of them still only work with media budgets for TV commercials, meaning that rarely a piece of this money will go to things like products, services and innovation.

video, film, action
At the same time as some creatives, media specialists, planners and even sales has been shifting from advertising agencies to tech giants like Google, Apple, Facebook and Twitter, the agencies have been struggling to find new forms to operate and deliver new things. They already have the creative force and access to clients, brands and budgets to start making much more than ads and TV commercials.

But maybe the problem is to have the velocity and appetite for risk just as startups.

Anyway, 2016 might be a better year in terms of budgets and projects for everyone. The Olympic Games is about to start and global brands will be around.

But return over investment, performance, content instead of ads, and most of all, creativity and innovation with impact in the real world, will be a challenge for everyone.

Something is happening this year and the game has just begun.

Read next: 5 tips for launching your startup in Latin America

Image credit: Shutterstock

This post is part of our contributor series. The views expressed are the author's own and not necessarily shared by TNW.

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