Agency Scope Insights: Agencies in Brazil contribute 60% to marketer's business growth

A Brazilian marketer works on average with 2.6 agencies, an index that remains aligned with the 2018 edition (2.4), and the average duration of their relationship is longer than in previous years: 4.3 years in this edition, when it was 4.1 years in 2018.

Photo by Rodrigo Kugnharski on Unsplash

When we talked with marketers about the allocation of their budget, we found that, for the first time, digital is the discipline that receives the largest part of the investment from funds committed to the communication and marketing of their companies (45% vs 39% in 2018). This difference comes from the migration of investment in Live Marketing (19% vs 13%), as the percentage allocated to ATL remains in line in relation to 2018 (around 41%).

The marketer-agency relationship model in this edition identifies, for the first time, a balance in marketers currently working with Integrated agencies to meet all their communication needs (50%, with a 7.1 p.p. growth), and those working with Specialized agencies. And when it comes to the intention for the future, the trend is consistent, with clients opting to continue working with the same type of agency.

On average, a Brazilian marketer believes that his agency contributes 60% to the growth of his business. The figure shows an increase once again, moving from 56% in 2018. This is the highest percentage among the eight countries where we analysed this data (South Africa, Argentina, Brazil, Chile, Colombia, Mexico, Spain and the UK). The global average is 32%.

César Vacchiano, president and CEO at Scopen tells us that “in no other country do marketers perceive a higher contribution to growth from their agencies as in Brazil. The business model of media services integrated within the strategic and creative offering is certainly a winning option and a competitive advantage for agencies”.

Knowledge (market, brand, customer), Creativity / Innovative Ideas and Strategic Planning are the main characteristics mentioned by marketers for an Integrated and/or advertising agency to be considered ‘ideal’. Creativity stands out above all other agency attributes: it is the second most mentioned in the case of an Integrated agency, but it takes the lead if we talk about the ‘ideal’ advertising agency.

When identifying the determining criteria used to select an agency, the attributes most mentioned by marketers are Strategic Planning and Creativity, followed by Digital Capacity, Innovation Capacity and Agency professionals.

Procurement’s involvement in the negotiation processes shows an upward trend globally and which is mirrored in Brazil. Six out of ten marketing executives interviewed confirm the figures: 62% in 2020 vs 54% in 2018.

Marketers in Brazil are less likely to change their current agencies. Predisposition to change decreased 5 p.p in this edition, being 12.3% (17.3% in 2018). When we asked about the reasons for a possible change, the worn out relationship is no longer the most mentioned (in 2018 it was the main reason with 40% of the mentions among those who would change), and the value for money/reasonable fee-cost becomes the main reason, followed by the conclusion of the contract. The Brazilian marketer is now more satisfied with their agencies, on average, a 78% (vs 71% identified in the previous edition).

Regarding the most admired agency professionals, there is a greater gender diversity with the entry of two women in the Top 10. Eduardo Simon, CEO of DPZ&T takes the lead, followed by Keka Morelle, CCO of Wunderman Thompson and Hugo Rodrigues, chairman and CEO at WMcCann.
On the Marketers´side, the most admired marketing professionals are Daniela Cachich (Pepsico), Igor Puga (Santander) and Eduardo Tracanella (Itaú).

Among the companies most respected for their marketing skills and expertise, Natura is the most mentioned company, followed by Itaú and Magazine Luiza. And regarding the best campaigns, Brazil now places Burger King in the first place (6th place in 2018), Ambev in the second place (while it was not in the TOP10 in the previous edition), and Itaú in the third one.

Agency Scope Brazil 2020/21 was conducted from May to September 2020 interviewing a total of 715 professionals: 366 marketing professionals, 22 procurement executives and 327 agency professionals.