SCOPEN and Más Cartagena presented the TREND SCORE LATAM 2020 report on the impact of Covid-19 on the advertiser advertising market for Latam. The paper was announced during the Forum: “The Creative and Content Industry facing the current situation”, organized by the Colombian Union of Advertising Companies and Más Cartagena.

The document had the collaboration of various associations in the region: Association of Media Agency (AA), Argentine Advertising Agency (AAP), Brazilian Association of Advertising Agencies (ABAP), Chilean Advertising Association (ACHAP), Association Peruvian Advertising Agency (APAP), Alliance for Strategic Value (AVE), Argentine Chamber of Media (CAAM) and Colombian Union of Advertising Companies (UCEP). Interviews were conducted with the Directors of Media, Marketing and Advertising, from a sample of 166 advertising companies from Argentina, Brazil, Chile, Colombia, Mexico and Peru.

From the most important data, it appears that 75% of the interviewees consider that the advertiser-agency relationship changed dramatically, prioritizing teleworks, changes in investment and improvement in the dynamics of modification processes.

Since the beginning of the pandemic crisis, 85% of advertiser reduced their advertising investment. 58.8% of companies decreased slowly and fell more than 30%. Only 12.1% of professionals kept their advertising investment stable and 3% said they had increased it.

Regarding the future and the recovery of the sector, 65.3% of advertisers are moderately optimistic, and believe that the reactivation will take around 5.7 months, counting from next August, which would lead to stability for the first quarter of 2021. Specifically, in the Brazilian case, 47% consider that the recovery will take place in the last 5 months of 2020, primarily in October.

En el caso de medios digitales, el impacto es más leve. El 40% de los profesionales declara haber incrementado su inversión. Además, el 45% declara reducción en sus inversiones, el 24% estabilidad y el 31% restante incremento.

In the case of digital media, the impact is slighter. 40% of professionals declare having increased their investment. In addition, 45% declare a reduction in their investments, 24% stability and the remaining 31% increase.

If you want to read the full report in Portuguese, click here.