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Investment in advertising: we are back in 30 years

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Investment in advertising: we are back in 30 years

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Carlos Acosta

Director of Advertising Report

Changes in time, new scenarios, paradigms broken as a society modernizes at maximum speed under the effects of a revolution, which, as the publicist Juan Pablo Jurado warns, it is not digital but cultural. The changes have affected the economy, business, consumption and advertising. Where are we standing and where are we going?

The report of the Argentine Chamber of Media Agencies, whose new president is Matías Domínguez CEO of the Ignis agency, has tremendous value in advertising investment in 2021, after the atypical 2020 and in a historically changing country like ours. . What the data says: the total investment is 89,479 million pesos72%more than in 2020. If we subtract inflation, which is 50.9%, we will see it drop to over 20%.

According to CAAM, this recovery is a product of the slowdown that occurred in 2020 and some changes are observed in the media mix, product of changes in media usage by viewers. TV maintains a 41% share, digital has grown from 36 to 40% (although it will be interesting to know what we mean now by talking about the digital category) In relation to radio, it is maintains 8% and the graph drops from 7% to two%.

What was the media’s reaction to the decline in investment and to the changes in media consumption habits experienced by the audience? For Maximiliano Sastre, Commercial Director of Clarín, the Argentine advertising investment it is not thriving in real terms because our economy is not thriving, and lacks dollar value as do most of our assets. The graphic was the most affected by the pandemic. “Paper is becoming a suitable product focused the most influential part of our population, used for the best user experience (we can’t compare a professional editor’s method of prioritizing information, to modern algorithms that order desktop or mobile versions) at an equivalent cost per contact “For Sastre, even the collapse of graphic represents a great blow for newspapers,” it also showed a significant advantage in terms of digital reconversion, ahead of the rest of the industry that has not experienced emergency due to change. In this sense, digital newspapers we develop better capabilities than the rest of the industry, modernizing formats, integrating different platforms, offering advanced techniques for use by interested audiences and behaviors; and they all have reliable information on the various stages of the digital conversion funnel. In the race for survival, we are the first species to evolve ”, he remarks.

Santiago Perincioli is VP Revenues, HubSur de Latam at Paramount and reviews facts for audiovisual media and tells us how they face these new challenges. The advertising market has registered an evolution accompanied by the rhythm of the level of demand ”.

Perincioli detailed a report conducted by Kantar Ibope: the level of demand, that is, the amount of audience that advertisers buy is maintained at a constant value with a few exceptions after the 2019 presidential elections and in the first half of 2020. In this line, over the past two years there has been a noticeable increase in content consumption across all platforms, but also on open television. And he added: “This system has played an important role as a key actor in the cohesion of society, showing its qualities of instantaneous in terms of what is worthy of news, and of empathy and closeness. to people. As a result, its reliability and stability characteristics are more alive than ever, continuing to give it a great place for brand communication. ” The executive understands that Today’s offer should include linear transmission services (pay and open TV) and streaming, with both paid and free services.. “In 2020 we launched Pluto TV, the first free streaming television service, a key pillar of our portfolio and a perfect complement to our linear signals for our customers. Also in 2021, we launched Paramount+, the our paid streaming platform with premium content and thousands of hours of exclusive originals. In this way, we strengthen our ecosystem by delivering 360 alternatives for your brands ”.

We live in a complex and highly competitive scenario, with inequalities that can only be corrected by political decision. A society with little media is a weak and less democratic society. The role of advertisers remains key because subscription models alone are not enough. If we carefully observe the document offered by CAAM, have we gone back 30 years? If we convert the value of BNA dollars (from $ 104 taken by the study, to those that actually exceeded $ 200) we will see that nearly 900 million dollars becomes half that. We go back to the early 90s, when investment was over 450 million dollars. Some fool will say “I miss you, Carlo”, but he forgets that economics is not a socially fair science, and what is cheap will be expensive. We still pay for it.

Source: Clarin

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