- Index hide1 The news is part of the challenges that come for agencies in the midst of inflation that the IM F has projected.
The news is part of the challenges that come for agencies in the midst of inflation that the IM F has projected.
Zenith have estimates of the growth of investment in advertising within Latin America.
The worth of Ikeaaccording to Brand Finance, is 17 billion dollars (2021 data).
Ikea started operations in South America and the famous furniture store chain has partnered with Gray Argentina to start its expansion in the market.
The South American market has become one of the most challenging due to aspects such as inflation, which according to the analysis of the International Monetary Fund (IMF), it is expected that during 2022 reach a 51 percent in Argentina, becoming one of the nations where the highest rate is expected in Latin America.
Within Mexico the estimate is barely 6.8 percentwhile in Venezuela it is estimated to reach a 500 percent and in Chile a 7.5 percent.
The scenario becomes a case of how the creative market performs in times of economic challenge, thus highlighting the client acquisition that Latin American agencies do.
Within this panorama there is an interesting projection by hand Zenithwhere the firm ensures that the growth of the expected investment in the region is 7.7 percent for this 2022, while for 2023 it will be 8.7 percent.
The slight growth in investment is not matched by 2021 where the growth expectation was 16 percent, however it is still a positive trend if we look at the numbers from 2020 when it contracted in 3.1 percent.
Gray Argentina with a new client
Ikea chose Gray Argentina to carry its entire creativity and communication agenda with which it lands in Latin America, with a first store in Chile. The commission is not minor and as we have reviewed with figures to draw the performance of the region, in the midst of phenomena such as the inflation that is being experienced and the impact on certain economies in this area, the pressure that it poses on creativity will be an interesting reactive to see bold ideas.
Given the expectations imposed on the market, activities without waste are coming, such as the one warned by Agustín Castellanos, Business VP & Chief Growth Officer in Grey.
“The entire process of immersion and integration of the Gray Argentina and Ikea teams during the last few months, both locally and globally, was deeply enriching and inspiring; Mainly because of the philosophy and values that surround Ikea and that are behind everything it does”.
“Undoubtedly this project represents a huge challenge for Grey, in addition to the pride that comes with leading the long-awaited landing of this iconic brand on our continent”confirmed about the tasks that are coming in the current context.
Just as Gray Argentina added Ikea as a client, McCann Colombia and Bank of Bogota they prepared “Empelota”, an activation of the “Cambiando Contigo” campaign, which the creative director of the agency, Jaime Perea, acknowledges:
“What I find interesting about the piece is that we are telling people that this is a fresh, simple, modern and open-minded bank without resorting to any of these words to express it. Thus it is gaining a significant role in people’s lives,” he said.
These announcements in the Latin American advertising industry are evidence of how important creativity continues to be and the influence it has as an asset for brands to stand out in the market, especially in difficult situations.