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    Ranking of Agencies and Advertising Investment Chile 2013. A local win

The Chilean agency Dittborn & Unzueta moved in to first place in the ranking of agencies, taking McCann’s leadership, a fact that had not happened in the recent decades among local agencies. This milestone occurs at a fluctuating year in terms of investment, which shows – at value rate – a lackluster 3.8% growth in mass media advertising.

By María Laura Martínez

In a Latin America that – according to Magna Global – had a 9.5% increase in advertising investment, and is turning into the most dynamic region in the world in terms of advertising, the truth is the 3.8% registered by Megatime at rate value for Chile, leaves a bad taste. Especially if the expectation is that the economy – and this unstable industry – will continue to slow down.

Either way we’ll have to wait for the Achap recount to have an accurate figure, considering that this is a measurement made at rate value and therefore can present significant distortions against reality of what the purchase of traditional media was last year. For now, the indicators speak of a television that kept its investment volume nearly intact (-0.1%), a press that expanded (8%), as did magazines (10.6%), and unlike what happened in display advertising (-4.5%, funny considering it’s election year) and the Metro (-10.5%). The star media was pay-TV, which recorded an increase of 18.6%.

In that lethargic scenario, creative agencies presented very different behaviors. Even the one that reached leadership, Dittborn & Unzueta, did while maintaining what it billed during 2012 (with a slight variation of -0.5%). However, reaching this podium, being on top of great multinational companies of the industry, is an achievement that reflects the momentum that this agency, born as a specialist in direct marketing, has had. “My impression is that it is the result of a trend. We have been growing steadily from the start, and during the last 10 years we started appearing in rankings and climbing even higher. About three years ago we got to 2nd place and last year we ended in 1st place, and I believe it has to do with being consistent and with the view of the agency. We are an agency that is very committed to its clients, the clients’ business and their objectives as well. And we are very intense when it comes to retail, which is one of the areas that concentrates the most investment. We work with Falabella, CMR, Fasa, Homecenter, Claro, Mall Plaza,” says Tomás Dittborn, partner and director of the agency.

He points out that “if one looks at history, in the last years the number one agency has been McCann. Before there was a period when the first place was shared by McCann and BBDO. And back, in the year ’76, Thompson. So if you see this, we are the first local agency in 40 years to reach the first place, and that’s nice because – even though we have IPG as a partner – all our clients are local.”

McCann gave them the space to enter, recording a -23.5% low, that can be observed in the ranking of advertisers, which could well be attributed to the decrease in its advertising (in mass media) of clients as relevant as Coca-Cola (-18.6%) and Ripley (-28.3%).

Of the Top 5 agencies, the only one that sees a rise according to Megatime is BBDO, which along with a growth of 10%, stepped ahead of Porta and moved in to third place. Impossible not to remember that there are two women at the head of this agency, Agatha Porte and Tonia Urey, apparently causing a positive change both in terms of creativity and results.

Another fact that should be noted is the rise of Leo Burnett and entry into the Top 10 of Publicis, both part of a group that has been promoted in Chile, as stressed by Alejandro Cardoso, regional CEO of Publicis: “What gets me excited is seeing what has happened during the past years, because we were at No. 22, and are now sixth in the Chilean market.”

It is not strange that it is the media agency Starcom Mediavest – linked to this group – the one with the highest growth among the leaders of that ranking, placing IPG in second place.

Among advertisers, stands out the power exhibited by Procter & Gamble in 2013, which lead to a 12.9% rise in advertising, something that was notorious in product launches and associated campaigns. Unilever, its archrival, fell behind in third place.

Another interesting rise is that of Nestlé, which leaped from the 14th to the fourth place, with an increase in its investment of 40.4%. A similar situation was lived by Soprole, its direct competition in dairy.

Positions were rearranged in the areas starting from the fourth place, but with no change among the select members of this top ten, which is still predominantly retail.

And just as Coca-Cola’s decrease in products calls everyone’s attention (something that will surely change during the World Cup), in the opposite sense, the rise of Activia reminds us of the controversial episodes faced by Danone and Canal 13. Something that surely caused some “indigestion” for executives on both sides.

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