Back when American automobile manufacturers wanted to dominate the auto industry in Brazil, the J. Walter Thompson Advertising Agency of New York opened an office in Brazil. The J. Walter Thompson Advertising Agency was the top ad agency in the United States back in 1929. Their major client was General Motors. General Motors opened a manufacturing plant in Brazil that year in order to introduce Brazilians to GM automobiles. Once the J. Walter Thompson Advertising Agency opened their office, N.W. Ayer & Son, another American agency, opened an office in São Paulo to service their client, the Ford Motor Company. Ford opened manufacturing plants in Brazil during the 1930s. Then the McCann Erickson agency arrived and started to promote their top client Standard Oil.
Cláudio Loureiro was not in the advertising business in those days, but he did learn how the advertising business in the United States operated thanks to the presence of those ad agencies. Mr. Loureiro founded Heads Propaganda about 60 years later and brought a new style of advertising to Brazilian consumers. Loureiro was instrumental in developing the ad campaigns for 3M, Arbor, Petrobras, and Caixa as well as other big Brazilian companies. When Loureiro opened Heads Propaganda other Brazilian agencies like Africa, DM9, Almap, and W/Brasil opened offices to get a piece of the lucrative Brazilian market. Those agencies directly compete with the major multinational agencies like the J. Walter Thompson Advertising Agency, McCann Erickson, Leo Burnett, Grey, Saatchi and Saatchi and Ogilvy. Those agencies primarily service their multinational clients, but they do have a few Brazilian clients.
The other type of agency in Brazil is the home-grown agencies that cater to local markets. Those agencies are extremely creative, but they don’t spread their talents to other areas of the country. That is the responsibility of agencies like Africa, Heads, and the others. São Paulo is the nerve center of Brazilian advertising even though the city banded outdoor advertising in 2006.
AgenciaoGlobo writes about Brazilian businesses like to do business with Brazilian advertising agencies because they understand what the people like. The American agencies design ads that fit a certain mold, and Brazilians don’t like that mold. That’s why the Brazilian agencies are considered more creative and more talented by the people. They bring to life what the people of Brazil want, and they do it in a way that is unique, appealing and entertaining.