Scope has completed the fourth edition of Scope Chile and found that digital investment continues to grow, with Chilean marketers now allocating an average of 2.6% of their turnover (sales) to communications/marketing budget/advertising. With the world average.
This number is closer to investments in developed markets than to investments in emerging markets (where it is closer to 5%). When marketing managers explain their budget allocation across disciplines, they talk about ATL (37%), BTL (14.5%) and digital (48.5%).
The number has tripled in the last nine years (2014=14.9%, 2023=48.5%), particularly in the last three years, during which agencies have strengthened their teams and capabilities.
Among the countries where these studies are conducted, Chile is the third market with the largest digital marketing, communications and advertising budget
At the top of the list is China, where 50% of the budget is allocated to campaigns with a digital component. Among the various digital professions, more than half of the budget is invested in paid media (28%) and social media (26%). Chile still invests less in social media than other markets, and investments in e-commerce and marketplaces are still in their infancy.
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- An average of six partner organizations to meet marketing, communications and advertising needs
Each marketing manager in Chile works with an average of more than six partner companies that fulfill their marketing, communication and advertising needs: advertising agencies (2.5), BTL agencies (1.2), media agencies (1, 0), digital agencies (0.9), public relations Agency (0.6) and Marketing Consulting Division (0.2).
- Greater willingness to work with integrated organizations in the future
53% of marketers surveyed work with specialized firms across all disciplines (advertising, BTL and digital), while 38.2% work with integrated firms (serving multiple needs under one roof).
The remaining 7.9% say they work with both types of organizations. In Chile, the relational model they want to use in the future does not match the current reality because advertisers want to work with more integrated agencies (55%).
At the international level, we see a group of countries with a strong desire to work with an integrated organization in the future (Argentina, Brazil, Chile, Mexico, Portugal and South Africa) and another with a high desire to work with a specialized organization. (Colombia, Spain, United Kingdom, China and India).
These are complex markets, where specialization is mainly justified by the need for more diverse specialists: digital, information or technology companies
- Long term relationship between advertiser and agency
The average duration of an advertiser's relationship with their creative agency is 5.3 years, higher than the global average of 4.4 years. Analyzed among other countries, we found that Portugal is the market with the longest relationship (6.4 years on average) and China is the country with the shortest relationship between advertisers and creative agencies (3.1 years).
For media companies, the average length of a relationship is just over 5.4 years. Advertisers in Chile tend to build longer relationships than in other markets, and data shows that longer-term relationships bring better results.
Globally, Chile is the country with the longest association (90%) in line with 2019 (88%).
Only 10% of respondents said they were working on a project (up from 12% in 2019), and that number has dropped due to the pandemic. On the contrary, in China, more advertisers work on projects with their company - 51% (in previous numbers - 47%).
- Advertisers cater to less national demand
When asked about the communications, marketing and advertising needs they handle internally, marketing managers say they do less than before. They mostly trust their agency to solve their needs, with only 13% saying some of them make decisions "in-house."
The five disciplines that marketers consider important are listed in order:
- Strategic planning
- Creativity
- Digital strategy
- Media planning
- Research
They will be the ones who currently have the most influence over their business and from whom they seek outsourced HR support.
In Chile, the possibility of having a lead agency is not seen as a requirement. Given that the typical advertiser here works with about six agents (below the global average of 13.9 agents), the help of the main agency to coordinate the agents they work with is not as necessary as in other markets.
However, it is important to note that media agencies are improving their position as leading organizations (six media agencies appear in the top 18), demonstrating that they also have the ability to support client marketing, communications and advertising groups as leaders. communication .
About studies
Fieldwork for this publication was conducted between November 2022 and April 2023, during which 394 professionals were interviewed: 217 employees of companies working in the field of communication and advertising (166 different companies), 95 experts in creating agencies and 82 media experts. . organizations
This is the first time agency experts have been interviewed in Chile Among the marketing managers surveyed, the vast majority work in Santiago (95%), more than half are women (56%), with an average age of 40, they have been working in their company for almost 4 years and they have been working for more than 6 years. Business. Current location.
Basically, they are leaders of foreign multinational corporations (55%), among them representatives of the service sector (55%) and consumer goods (31%).
The survey is conducted every two years in 11 markets worldwide (Argentina, Brazil, Chile, China, Colombia, Spain, India, Mexico, Portugal, United Kingdom and South Africa).
The study analyzes trends in the advertising market to understand the processes, perceptions and performance of the various agencies in which advertisers work.
In Spain, the study already has 23 publications.
The study includes an analysis of differences in the results of various publications as well as comparisons with results obtained in other markets. The study is the only one of its kind in the industry, and its main value lies in providing organizations undertaking the study with direct insight into their clients' needs, which becomes a unique tool for identifying opportunities for growth, improvement and new offerings. Service. .
Provided by SyndiGate Media Inc. (Syndigate.info).