SÃO PAULO — Against a backdrop of looming economic turmoil, Weber Shandwick CEO Andy Polansky predicted more opportunity for the PR industry, often at the expense of other marketing disciplines at the Holmes Report’s inaugural Latin America conference in Brazil today.

“Yes, the region is feeling the impact of some macroeconomic challenges right now,” Polansky said. “But the vibrancy of the market and its influence in our industry and the global economy is clear and will only grow in importance over time.”  

Brazil’s GDP fell by 4.5% in the third quarter with reports forecasting the region is headed for massive recession. Yet Polansky pointed to bright spots for the region’s PR sector. For instance, the pending Trans-Pacific Partnership, multinationals taking interest in the region’s growing middle class, the high-profile events hosted in Brazil and that five of the top 20 most creative agencies around the world are from Latin America, based on the Cannes Lions winners.

Brazil’s GDP fell by 4.5% in the third quarter with reports forecasting the region is headed for massive recession. Yet Polansky pointed to bright spots for the region’s PR sector. For instance, the pending Trans-Pacific Partnership, multinationals taking interest in the region’s growing middle class, the high-profile events hosted in Brazil and that five of the top 20 most creative agencies around the world are from Latin America, based on the Cannes Lions winners.

Polansky also noted the uptick of PR M&A activity within the region recently (like WPP, among others). When it comes to Weber Shandwick’s acquisitions, during the Q&A portion of the talk, Polansky said he’s currently more focused on deepening the expertise and dimensions of the business more than entering new geographies.

He also said some amount of consolidation in the business is inevitable for both agencies and on the client-side. He was optimistic about the industry’s capabilities to grow organically by expanding its services and making inroads into new marketing sectors.

“Not only are we playing a bigger role in marketing strategies for our clients, but we’re also representing organizations on issues that influence society as a whole,” Polansky said.

Polansky added that total spending on marketing and communications services globally has increased consistently since 2010, growing nearly 15% and by more than $100bn through 2014.

“While PR is still just above 1% of global marketing/communications spending, we have seen industry estimates that reflect a nearly $2bn increase in PR investment globally,” Polansky said. “That is an increase of almost 20% since 2010.”

In the following session, “Earning the Keys to the C-Suite” Burson-Marsteller’s CEO for Latin America Ramiro Prudencio pointed to the distrust in CEOs and companies because of corruption in the region.

He also noted that management consulting firms are moving into the public relations business because it’s becoming increasingly clear that market valuations are correlated with reputation.

“Now all of a sudden we have a vote on companies everyday,” he said. “It validates what we do but it will also require us to up our game.”

Kiki Moretti, founder and CEO of Grupo In Press, agreed and noted the industry must accelerate the pace of this change.

Ciro Dias dos Reis, founder and CEO, Imagem Coporativa, noted the challenge in Latin America is most PR practitioners come from journalism rather than the more diverse business skillsets, like in the US.