Investments, parity and a summit

It has been a key week for the ad industry that follows settling at a dizzying pace given the economic and cultural changes taking place. On the one hand, advertising investments in the world according to the projection of the WARC consultancy, one of the most prestigious in the world, indicate that this year will increase by 8.3%, but warn that growth will slow significantly in 2023. In the case of Argentina, the investment announced by the Chamber of Media Agencies is slightly higher than last year, including inflation, but with a notable change in the media mix as for the first time there is parity between digital investment and TV (41% vs 41%), once the protagonist of the cake. Social platforms continue to gain ground at the expense of more “traditional” media.

The world of agencies is called to follow him changing according to the new needs of brands and the public. With these prospects, the hardest part of the business met on Wednesday at the Audi Lounge, convened by Advertising report. The authorities of the Argentine Chamber of Advertisers, Argentine Agencies and the Argentine Chamber of Media, along with four industry leaders, met in person to listen to each other and propose alternatives to address this new era and a new work agenda.

“Advertising is a tool and we always ask ourselves if we are doing our best and if we are adapting to today’s world, where audiences are changing so much. There must be consistency between what we pay for ideas and their results. Our main goal is to sell, ”said Philip Pérez, president of the CAA.

For her part Denise Orman, president of Agencias Argentinas, recognized that “agencies are challenged, beyond the context, by incorporating previously unthinkable talents and aware that we need a profound change. We are more than a tool.

And he continued: “We accompany companies in their transformation. We are in the world of ideas and we can enter other places. How much are companies willing to pay for that talent?”

Papon Ricciarelli, managing director of the Don agency, added to topic: “Without brands there are no agencies, but without ideas there are no brands. Capitalism works thanks to advertising and until nothing else is invented … In this sector, besides selling, you have to demonstrate. There is interest rate inflation. Argentina is an incredibly talented factory but it is a country where sometimes you have to produce without light and without means. We are very good at looking at evil but we don’t neglect talent. As an industry we have to take care of it and train it “.

In this sense Paula Pavese CEO of PHD Argentina Indian: “There is a lot of talk about talent, but talent takes care of the money. We live in a time of Cambrian media explosion. The demands of everyday life make us hysterical and we lose strategic vision and look to the future. Customers today want everything. My invitation is to open up and have constructive discussions ”.

For CAAM manager Matías Domínguez, “we are experiencing an exciting phase but with a cake that hasn’t grown for years in a context where costs are accelerating and investment in talent and technology is fundamental. We must continue to work on the value proposition and be more synergistic as a sector ”.

The vision of the brands was represented by Eugenio Cucu Raffo, Marketing VP of Cervecería y Maltería Quilmes, and Silvana Cataldo Brand Strategy & Entertainment Sr Manager of Telecom. Raffo highlighted The big moment who lives communication by saying that “what is happening is great if we understand that the context has never been better for the work we do, today we know what people are doing, there have never been so many eyes in front of a screen and we have a great opportunity to produce ideas. Has the agency lost its relevant seat at the discussion table? I do not know. I think we have all lost power because everything has become more democratic. Collaboration is a power value “.

Cataldo recognized this there are challenges and there are opportunities but that we live in a model that doesn’t work and that needs to be reconverted. “We have to lead teams that produce change. The role of the agency has always been important, but what we are experiencing is a strong transformation within companies. Today there is co-construction and agencies participate in other areas that have to do not only with communication but also with business. The focus is on ideas and the value we place on them. Respect the work we do, breaking patterns that no longer apply ”.

Pending matters

A very important issue on the agenda of agencies and companies has to do with composition and diversity of talents behind the ideas we see on every screen. This week presented the first study on the creative population led by Women in Advertising, the NGO that functions as a professional network that brings together women and non-binary identities of the communication industry, the consultancy for the management of talents Medio Mundo and the Círculo de Argentine Creatives. The research started with the question: are there or aren’t there women in the creative area? The study reached more than 69 agencies in AMBA and provided worrying data: Although there are more women than in previous years in the creative teams, there is still no parity. Only 17.3% of agencies have gender parity in creative areas. Most of them in small, independent agencies.

The higher the hierarchy, the fewer women: only 2.7% of them reach top creative leadership positions and almost 90% of the agencies interviewed have no female leaders. Creative Direction is the first major obstacle, where women’s participation is drastically reduced.

No specific action included DEI training and new forms of employmentwithout prejudice, balance will not be achieved in the creative departments, one of the most important areas of the communication business considering that ideas are the raw material of the sector.

the numbers of the sector

CAAM presented its report and conclusions on the first half of 2022 and a projection for the end of the year. According to their data, the media advertising investment market has grown by 84% in current pesos compared to the same half of 2021 and, translated into dollars, a growth of 52% has been observed.

Out of a grand total of $ 62,698 million pesos, the strong media were television with $ 25,957 million pesos and a share of 41.4% and digital with $ 25,769 million pesos and a share of 41.1%.

In turn, CAAM expects a economic slowdown in this second half 2022 with a year-end growth of between 75% and 80% compared to 2021, for a total of 160,000 million pesos