Scopen research finds Chilean creative companies invest an average of R500,000 per year in New Business

Source: © 123rf 123rf Panoramic view of Santiago de Chile with the Andes mountain range in the back. Scopen's latest report analyses the new business practices of creative companies and advertisers' practices in Chile

The roles most involved in this activity are Account professionals (63.6%), followed by Commercial (45.4%) and Creative (36.4%) profiles.

This is according to a report that analyses the new business practices of creative companies and advertisers' practices in Chile, comparing them to other markets such as Spain and Brazil, where similar studies are conducted.

The report was presented by International consultancy Scopen’s president and CEO César Vacchiano, and took place on 10 December at the Creative Companies Festival, an event designed to connect and highlight the transformative power of creativity, bringing together leading figures from the marketing and communications industry in the country.

Vacchiano says, “New Business is the growth engine for creative companies and a key factor in driving innovation within the industry. Improving and remunerating these processes would ensure fair recognition aligned with the effort made by creative companies.”

Johanna McDowell, founder and CEO of the Independent Agency Search & Selection Company and managing partner for Scopen Africa comments, ”This is a very useful report and I am pleased to announce that Scopen will be producing a report for South Africa during the first quarter of 2025. This kind of data will be enlightening for this market.”

Pitches

Over the past year, creative companies in Chile participated in an average of 23 pitches, with an average success rate of 32.5%, slightly below Spain's 37%.

One-third of the companies participated in between six and 10 pitches annually.

In Brazil, the annual average is 16.2, while in Spain it is 27.

Interestingly, the company with the highest success rate won 80% of the pitches it participated in, having competed in five.

Number of creative companies

Advertisers rarely disclose the number of creative companies participating in pitches.

In Chile, this information is shared in only 30% of cases, a significantly lower percentage than Spain's 88%.

In 22% of the processes, the number of participants remains undisclosed.

The average number of creative companies invited to a pitch by an advertiser in Chile is 5.5 (4.5 in Spain).

The highest number recorded in the study was 12 invited creative companies.

When asked about this, creative companies believe the number of invited participants should be limited to a maximum of four.

Duration

In the pitch processes in which the surveyed companies participated, the average duration was just under three months, similar to other markets (3.3 months in Spain).

Half of the respondents mentioned processes lasting two months, 20% resolved within one month, and the longest process took 20 months (an exception, as the second longest was five months).

Regarding the time given by advertisers for creative companies to submit proposals after receiving the brief, the average is three weeks.
Of the advertisers, 44% provide one month and 36% two weeks.

Remuneration

The remuneration of these processes is one of the most significant challenges advertisers face with creative companies, a common issue across all markets studied.

In Chile, only 1% of pitches were remunerated, compared to 16% in Brazil.

According to creative companies, the minimum amount advertisers should pay participants is 3.6m pesos (R70,000).

The average annual investment made by creative companies in Chile in New Business is approximately 25m pesos (R500,000), of which almost 18 million (R350,000) corresponds to personnel expenses.

Around six million (R115,000) accounts for external costs such as research, travel, and material production.

About the study

The report is the result of a small study commissioned by the Creative Companies Chamber and conducted by Scopen.

With participation from 36 creative companies, the study provides a significant snapshot of the sector, highlighting practices, challenges, and opportunities.

Creative companies include creative agencies, advertising agencies, production companies and all kinds of companies related to creativity, culture and innovation.