Publicis Groupe has signed an agreement to acquire AG2, one of the largest independent digital agencies in Brazil. The agency will be aligned with Publicis Modem, the digital arm of the Publicis Worldwide global network, and will be renamed AG2 Publicis Modem. Cesar Paz, CEO of AG2, will continue to lead the agency, and will now report to Orlando Marques, CEO of Publicis Brazil.
Headquartered in Porto Alegre with offices in São Paulo and Pelotas, AG2 employs approximately 170 communications specialists. Since its launch in 1999, the agency has established itself as a national leader in interactive experiences. AG2’s core expertise is competitive intelligence, a competence that boosts its other two: brand management and interactive experiences. Major clients include General Motors, Bradesco (one of the biggest banks in Brazil), Embraer, and Bunge Group.
The acquisition of AG2 illustrates Publicis Groupe’s continued commitment to investing in digital and high-growth markets. AG2 is the most recent addition to the Publicis Modem digital network. Publicis Modem currently employs approximately 1,400 professionals and has 40 offices around the world.
According to ZenithOptimedia adspend forecasts (July 2010), the Brazilian ad market expanded rapidly during the five years leading to 2008. All media performed well, but online is the clear winner: between 2004 and 2008, the online market grew by at least 40% each year. Because marketing budgets were slashed last year, overall estimated growth slowed in 2009, but is poised to recover rapidly. Brazil is still considered one of the most promising advertising markets in the world.
Publicis Groupe has nearly 750 employees in Brazil. The Groupe is present through its brands Publicis Worldwide, Saatchi & Saatchi, Leo Burnett, VivaKi (Digitas, Razorfish, Starcom MediaVest Group, ZenithOptimedia), and MS&LGroup.
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