Publicidade vs. propaganda
In Portuguese, the distinction between publicidade and propaganda depends heavily on the region. While both terms relate to communication, distinct boundaries exist in Portugal regarding commercial versus ideological intent. In Brazil, these lines are blurred in everyday speech, leading to frequent interchangeability.
Publicidade
B1In both Brazil and Portugal, publicidade refers to commercial advertising aimed at promoting products, services, or brands to consumers. It is the standard, formal term for the industry and the profession.
A agência de publicidade ganhou três prêmios este ano.
(The advertising agency won three awards this year.)
O governo decidiu proibir a publicidade de jogos de azar na televisão.
(The government decided to ban gambling advertising on television.)
Ela trabalha com publicidade digital.
(She works with digital advertising.)
Propaganda
B2In Portugal, propaganda is strictly limited to political, religious, or ideological messaging and typically carries a negative connotation of manipulation. In Brazil, however, widely used in daily definition, propaganda acts as a common synonym for a commercial advertisement (like a TV spot), referring to the act of propagating any message.
Eu vi uma propaganda de carro incrível durante o intervalo do jogo. (Common Brazilian usage)
(I saw an amazing car advertisement during the game's halftime.)
Isso não é notícia, é apenas propaganda política do partido. (Standard European usage)
(That is not news, it is just political propaganda from the party.)
A loja fez muita propaganda para a promoção de Natal. (Common Brazilian usage)
(The store did a lot of advertising for the Christmas sale.)
Summary
To summarize, use publicidade in both countries when discussing the professional industry or commercial ads. Be careful with propaganda: in Portugal, use it only for ideological or political dissemination; in Brazil, you may safely use it to describe a TV commercial or a store flyer.