Interpublic Seeks Social and Mobile Gains in Brazil with Cubocc Purchase

  |  March 25, 2010   |  Comments

Small digital shop is deemed a good fit after showing social moxie with brands like Doritos.

Interpublic Group has acquired Brazilian digital agency Cubocc in an effort to bolster the New York-based holding company's social and mobile expertise in Latin America. Financial terms were not disclosed. But as is the case with most acquisitions, the sharing and leveraging of each party's intellectual and technological assets will be key to the deal's success.

Roberto Martini, CEO of Cubocc, which will remain a standalone brand, said that his Sao Paulo-based company looks forward to using the campaign tools and consumer data it will obtain from IPG's roster of agencies. That likely includes Brazil-based assets for McCann-Erickson, Lowe, Draftcb, FutureBrand, Orion Trading, and MRM Worldwide. He suggested the shared information would help his agency better target campaigns not only in Brazil, but other Latin American countries as well.

"In some ways, we are already integrated with some of their tools...and using them for [data] and our channel planning," Martini said. "For a small company like us to have this kind of information is very good and makes us stronger."

According to IPG spokesperson Tom Cunningham, Cubocc may help IPG brands that do not have a strong Brazilian presence - such as Deutsch, R/GA, and The Martin Agency - with possible digital efforts in the country. Martini said they'll be able to tap his six-year-old agency's know-how when it comes to social media and SMS-based mobile marketing.

Brazilian consumer habits via digital channels that differ from U.S./European usage, he said, include a preference for Twitter and Google social site Orkut over Facebook. Martini also mentioned SMS being wildly popular while Internet browsing on smartphones lags dramatically compared to other countries.

Specifically citing Cubocc's ongoing "augmented reality" campaign for Doritos (see video below), he said, "We are known here in Brazil for creating huge social media campaigns."

Cubocc employs just 150 but has shown it can handle major clients like Doritos and Unilever. It was IPG's first agency buy since purchasing a stake in Brooklyn, NY-based digital firm Huge in July 2008, which was transacted before the economy began to tank two months later.

With a seemingly stabilized financial climate, the deal may mark a return to major U.S. agencies attempting to stake claims in foreign markets that have growing digital audiences. For instance, according to recent research by Canadian social media metrics firm Sysomos, Brazil now ranks second to the U.S. among all nations for Twitter users. After a 2008 that saw a lot of movement in the Brazilian marketplace, 2009 was a comparative dead period for big agency expansions.

You can follow Christopher Heine on Twitter at @ChrisClickZ.

ClickZ Live San Francisco August 10-12: Revolutionize your digital marketing campaigns at ClickZ Live San Francisco! Educating marketers for over 15 years, our action-packed, educationally-focused agenda covers every aspect of digital marketing. Early Bird rates available through Friday, July 17 - save up to $300! Register today.

ABOUT THE AUTHOR

Christopher Heine

Christopher Heine was a senior writer for ClickZ through June 2012. He covered social media, sports/entertainment marketing, retail, and more. Heine's work has also appeared via Mashable, Brandweek, DM News, MarketingSherpa, and other tech- and ad-centric publications. USA Today, Bloomberg Radio, and The Los Angeles Times have cited him as an expert journalist.

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

Featured White Papers

US Consumer Device Preference Report

US Consumer Device Preference Report
Traditionally desktops have shown to convert better than mobile devices however, 2015 might be a tipping point for mobile conversions! Download this report to find why mobile users are more important then ever.

E-Commerce Customer Lifecycle

E-Commerce Customer Lifecycle
Have you ever wondered what factors influence online spending or why shoppers abandon their cart? This data-rich infogram offers actionable insight into creating a more seamless online shopping experience across the multiple devices consumers are using.

WEBINARS

Jobs

  • Sr. Marketing Specialist, PPC
    Sr. Marketing Specialist, PPC (Charter Communications) - StamfordSr. Marketing Specialist, PPC– Digital Marketing Charter Communications...
  • Online Marketing Analyst
    Online Marketing Analyst (FULLBEAUTY Brands ) - New YorkINTRODUCTION: Are you interested in a unique career opportunity where you can represent...
  • Copy Editor
    Copy Editor (ClickZ / Search Engine Watch) - New YorkROLE OVERVIEW The role of the copy editor for ClickZ has many demands. Ultimately, the copy...