REGISTRO DOI: 10.69849/revistaft/ar10202304010825
Rodrigo Xavier Bruno
Abstract
Advertising is a fundamental driver of business growth, enhancing brand value, boosting revenues, and shaping corporate strategies. It promotes competitiveness through price transparency, innovation, and consumer choice while facilitating the global expansion of brands. Between 2001 and 2020, advertising investments in Brazil grew at a compound annual rate of 4.5% above inflation, underscoring the sector’s economic significance. In 2020, its contribution to Brazil’s economy was approximately R$ 418.8 billion, directly supporting around 435,000 jobs across various industries. The dynamic Brazilian market presents unique challenges for brands, particularly concerning cultural sensitivity. The case of OXXO, a Mexican convenience store chain, highlights the risks of misjudging local consumer sentiments, as its campaign to teach the Brazilian pronunciation of its name received criticism. This underscores the necessity for brands to adapt their messaging to local nuances rather than relying on literal translations. Emerging technologies and changing consumer preferences are also reshaping advertising strategies. Companies must leverage artificial intelligence, data analytics, and new media channels to engage consumers effectively. Ethical considerations regarding digital advertising and data privacy are becoming increasingly important as consumer awareness rises. Brazil’s advertising landscape is characterized by diversity, with regional brands often leading in local markets due to their cultural connections. To succeed, businesses must tailor their marketing strategies to align with Brazilian consumer needs, incorporating localized content, leveraging social media, and understanding regulatory complexities. By fostering cultural sensitivity and adopting flexible communication strategies, brands can enhance their connection with Brazilian consumers and thrive in this vibrant market.
Keywords: Advertising; Cultural Sensitivity; Brazil; Economic Growth; Consumer Engagement.
Advertising plays a crucial role in supporting businesses by helping them build brand value, boost revenues, and enhance their corporate strategies. It drives competitiveness by providing price transparency, introducing innovations, and offering consumers a variety of choices, while also contributing to the global expansion of brands. Additionally, advertising serves as a powerful vehicle for disseminating information and can encourage the adoption of new behaviors that promote consumer well-being. Furthermore, it plays a pivotal role in financing media outlets, thereby supporting freedom of expression, and acts as a catalyst for culture, entertainment, and sports through sponsorship of events, artists, athletes, and sports teams.
Between 2001 and 2020, advertising investments in Brazil grew at a compound annual rate of 4.5% above inflation, underlining the sector’s significance to the national economy. Advertising not only stimulates consumption but also enhances productivity and fosters competition among businesses. Its contribution to the Brazilian economy in 2020 was estimated at approximately R$ 418.8 billion. The sector also supports a large workforce, directly and indirectly generating employment in various industries, such as media, production, and entertainment. In 2019, around 435,000 individuals were engaged in activities linked to advertising, reflecting its substantial socioeconomic impact (Brazil, 2019).
The evolving preferences of consumers will continue to shape advertising production and delivery methods, as well as the regulations governing the sector. Emerging media channels are expected to claim a larger share of advertising investments, driving an integrated multi-channel strategy. As consumer habits shift, they will redefine how advertisements interact with audiences. Technologies like artificial intelligence, the Internet of Things, and 5G are poised to become increasingly integral to advertising strategies, while data analytics will play a central role in decision-making processes. At the same time, ethical concerns surrounding digital advertising and data collection will grow in importance, presenting new challenges for the industry. To navigate this landscape, the advertising sector must remain adaptable and responsive to innovation (Deloitte, 2021). Since 2001, media investments in Brazil have steadily increased, positioning the country among the top global markets for advertising. In 2019, Brazil ranked 7th in global advertising spending. During this period, Gross Advertising Value (GAV) in Brazil reached R$ 49 billion in 2020, highlighting the increasing relevance of advertising to the country’s economy. This sustained growth, marked by a 4.5% annual increase above inflation, underscores the sector’s vital role in Brazil’s economic landscape (Mídia Dados, 2020; Kantar IBOPE Media, 2019).
Source: Kantar IBOPE Media.
Brazil’s socioeconomic and cultural landscape significantly shapes the behavior and the ways in which its population consumes advertising. As a vast and diverse country, Brazil presents major disparities in access to media and entertainment, largely influenced by economic factors. Limited availability of electronic devices like smartphones and computers, alongside restricted broadband internet access, hampers the consumption of paid media—such as cinema, subscription-based TV, and Over the Top (OTT) services—for a substantial portion of the population. Moreover, Brazil’s cultural identity includes unique local communication methods that have a strong impact on advertising, such as sound trucks promoting products and services in neighborhoods, flyer distribution, advertising on the uniforms of local athletes, and supermarket tabloids with special offers. These channels, though often lacking formal metrics for measuring investments, are widely used and highly effective. Regional brands also play a crucial role, frequently leading local markets and outperforming national brands, due in part to logistical benefits and their deep connection to regional cultural identities. These elements underscore the diversity and intricacy of Brazil’s advertising market, which employs a variety of strategies and platforms to engage consumers across different regions.
Brazilian advertising has earned global recognition for its creativity and high quality, thanks to a combination of skilled talent and a well-balanced, sustainable business model. According to the WARC Creative 100 rankings, Brazil is the third most creative country in the world for advertising. In 2019, Brazil secured 85 awards at the Cannes International Festival of Creativity, ranking as the third most awarded country in this prestigious global competition. Additionally, Brazil’s advertising industry is highly regarded for its commitment to maintaining a full-service agency model, which handles all aspects of advertising and marketing strategy, bolstered by a strong legal framework and self-regulation mechanisms (WARC Creative 100, 2020; Cannes Lions, 2019).
Source: “A Mídia & Eu – A função dos dados na entrega de uma melhor publicidade” – Dimension, 2020; Kantar IBOPE Media, 2019.
Cultural proximity between Brazil and the U.S. presents both opportunities and challenges for American companies operating in the Brazilian market. While Brazil scores highly on cultural compatibility indices, significant differences in business practices and interpersonal dynamics can lead to misunderstandings. Brazilians prioritize personal connections and tend to engage in socializing before diving into business discussions, often requiring longer appointment times and a flexible approach to scheduling. In contrast, Americans are typically more task-oriented, valuing punctuality and directness in communication. This divergence can create friction, especially when Americans expect meetings to adhere strictly to timelines while Brazilians adopt a more relaxed attitude toward time management. Cultural awareness training can help bridge these gaps, enhancing communication and collaboration between American and Brazilian professionals by fostering a deeper understanding of each other’s values and practices (Faugeres, 2023).
American companies face various challenges when trying to adapt their brands and campaigns to the Brazilian cultural context. Brazil, with its regional diversity and cultural particularities, demands a more personalized communication approach that is sensitive to local nuances. One of the main challenges is adjusting brand messages, slogans, and advertising campaigns in a way that resonates with the Brazilian audience while maintaining the essence of the brand’s global identity. Often, literal translations or a lack of understanding of cultural values and expressions can lead to misunderstandings or disconnections with consumers.
Adaptation involves more than just a simple translation; it is essential to localize content. This means adjusting the tone, style, and even the symbols used in communication to reflect the values and expectations of the Brazilian audience. The use of informal language, humor, and emotions are elements that need to be carefully crafted to create an authentic connection with consumers. A lack of sensitivity in this regard can result in campaigns that fail to engage the audience, negatively impacting the brand’s image.
In a competitive and diverse market like Brazil, the success of American companies depends directly on their ability to adjust their communication strategies, respecting cultural specificities while adopting a more localized positioning, without sacrificing the brand’s global consistency.
To succeed in the Brazilian market, businesses must tailor their marketing strategies to align with the unique needs and preferences of Brazilian consumers. Cultural sensitivity is paramount, as Brazilian culture differs significantly from Western norms; marketers should be aware of local values and avoid humor or sarcasm that may not translate well. Localizing marketing messages is essential, which involves translating content into Portuguese and incorporating relevant images and symbols, such as featuring Brazilian celebrities in campaigns. Additionally, leveraging social media is crucial, given its popularity in Brazil; companies should establish brand pages and engage in targeted campaigns, potentially partnering with influencers who can effectively reach and resonate with local audiences. Finally, offering localized payment options, such as Boleto Bancário and Cartão de Crédito, can enhance the shopping experience, as Brazilians tend to prefer familiar payment methods. By addressing these factors, businesses can significantly improve their chances of thriving in the Brazilian market (Kamath, 2023).
To successfully sell directly to Brazilian consumers, businesses must navigate a complex landscape of laws and regulations that encompass import, tax, consumer protection, and intellectual property laws. Compliance with Brazilian import regulations is crucial, as these can vary based on the product category. Additionally, companies are responsible for collecting and remitting appropriate taxes, which also differ depending on the product and sale location. Adhering to consumer protection laws is essential to safeguard against unfair practices, while protecting intellectual property rights, including trademarks and patents, is necessary to maintain brand integrity. Building trust and credibility with Brazilian shoppers is equally important; this can be achieved by offering high-quality products, providing exceptional customer service, and maintaining transparency in pricing and shipping policies. To effectively reach Brazilian audiences, businesses should implement cross-border marketing strategies, such as translating materials into Portuguese, collaborating with local influencers, and optimizing their online presence through SEO. Moreover, meeting the high expectations for customer service involves being responsive to inquiries, addressing issues promptly, and ensuring clear return and refund policies, preferably in Portuguese, to foster a positive consumer experience (Kamath, 2023).
The Brazilian consumer market presents a significant opportunity for international companies, as highlighted by the case of OXXO, a Mexican convenience store chain that has rapidly expanded across Latin America. Entering Brazil in 2020 through a partnership with Grupo NÓS, OXXO quickly captured attention with its playful tagline, “You say ‘ô-qui-ssô’ and it’s always close,” aimed at guiding consumers on the correct pronunciation of the brand. However, this marketing approach has been met with skepticism by experts, drawing parallels to a previous misstep by Head and Shoulders. Despite heavy investment in advertising featuring a well-known figure attempting to teach Brazilians how to pronounce the brand, it failed to resonate, leaving Head and Shoulders outside the top twelve favorite shampoos in Brazil. This case underscores the importance of cultural sensitivity and the potential pitfalls of misreading local consumer sentiment when entering the Brazilian market (Sterna, 2023).
In conclusion, advertising is an essential tool that not only drives the economic growth of businesses but also shapes consumer behavior and market culture. In the Brazilian context, where the advertising sector grew at a compound annual rate of 4.5% above inflation between 2001 and 2020, it is evident that advertising not only fuels demand for products and services but also significantly contributes to productivity and competition among companies. Brazil, with its cultural and regional diversity, presents a challenging landscape where brands must navigate local nuances to establish themselves effectively.
The case of OXXO perfectly illustrates the risks associated with a lack of cultural sensitivity. In attempting to guide Brazilian consumers on the pronunciation of the brand, OXXO, despite its rapid expansion and significant resources, faced criticism reminiscent of previous experiences of other brands that failed to acknowledge the complexity of the local market. This situation underscores the importance of an approach that goes beyond the literal translation of messages and slogans, requiring a genuine adaptation that considers the cultural, behavioral, and social particularities of Brazil.
Furthermore, the increasing importance of emerging technologies and the evolution of media platforms demand that companies remain agile and open to innovation. The use of artificial intelligence, data analytics, and digital marketing strategies is becoming increasingly relevant in how brands connect with consumers. Ethics in digital advertising and data protection are also critical issues that must be addressed as consumers become more aware and demanding regarding privacy.
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