Tuesday, 02 May 2023 18:16

ASAP presents AdMap: the first study of the current situation of the salvadoran advertising industry and its future opportunities

Written by Evelyn Alas

The Asociación Salvadoreña de Agencias de Publicidad (ASAP), presented the results of the study AdMAP (Ad Market & Agency Profile), the first study conducted in the country on the current situation of the Salvadoran industry and its future opportunities.

Promoted by the association and prepared by the argentinean consulting firm Sanar Su Empresa, led by Carlos Pezzani and Victor Fantauzzo, the study involved the participation of eight of the main agencies in El Salvador and 32 of the main advertising companies, who committed to and supported the initiative.

"This is a big step for the local market, because it allows us to know where we stand. Beyond the knowledge we generate, the study contrasts our own perception with the vision of our clients, which allows us to identify the differences and operate to close the gap", said Sherman Javier Calvo, President of ASAP.

"AdMAP puts into perspective attributes from the point of view of advertisers and agencies, and elaborates rankings based on variables such as creativity, service and attractiveness", said Carlos Pezzani. "It is a tool that allows agencies to make better decisions and to visualize areas of opportunity within the framework of their relationships with clients", added Victor Fantauzzo.

As part of the study, the Brand Agency Power Map was also presented, a tool designed by the consultancy firm, which combines qualitative and quantitative data to determine the positioning of agencies based on four pillars: empathy, value contribution, innovation and transformation capacity.

Empathy and value provide the status (present position) and innovation and transformation the energy (future dynamic potential).

Among the findings of the study, it can be highlighted that on average, agencies grew during 2022 in turnover and also in profitability compared to the previous year. The growth factors: new business and increased investment from existing customers. In addition, the trend of investment transfer to Digital is reaffirmed, reaching in percentage to ATL investments.

In addition, the diagnosis identifies the opportunity to deepen the quality of service specialization for full service agencies, based on the persistence of advertisers' preference for specialization, unlike in the rest of Latin America, where the trend is the opposite.

Latin America, where the trend is the opposite. Strategic planning, quality in execution and digital capacity also appear as pillars of the ideal agency, as well as the professionalism of the team, visible work and previous experience are the drivers for the consideration of an agency by clients.

From the clients' point of view, the challenges for 2023 are related to the search for greater effectiveness and return on investment, innovation and anticipation of trends. Clients also consider digital capability, data analytics and loyalty as highly relevant.

The Brand Agency Power Map shows in the Status Map a higher concentration of agencies in the empathy quadrants, i.e. the market is concentrated in service and delivery, with some agencies that were able to take off by contributing growth to move towards the Value quadrant. This is also evident in the Energy Map, in which most agencies are challenged to project themselves in innovation and transformation.

A summary and video of the overall results presentation will be available to active ASAP members as one of the benefits of ASAP membership.

 

Translated by: A.M