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In Chile, open television is still the most relevant medium in terms of nationwide penetration, with a potential reach of 98% over the total population. At the same time, it is the medium with the highest share of ad spend in the local industry (48% of the mix).
Companies continue to trust TV as the most important medium for their communication plans, and they are looking for innovation as a way to differentiate their brands from the rest. Currently they count on several tools to achieve that goal, such as 3D spots, interactive placements or platforms combining both, open TV and the digital world. This has clearly refreshed the way brands and agencies are using this medium, way beyond the traditional 30-second spot.
The big change that TV is going to face in the coming years is the implementation of digital TV, for which the Chilean state has adopted the Japanese norm ISDB (Integrated Services Digital Broadcasting). This process, currently in the testing period (started in 2010) will take about eight years to be fully implemented. It is expected that digital TV will cause important changes not only for users but also for the way that TV is being commercialized.
Even though there are several TV channels in the country, only seven of them have a national coverage. These stations are organized in ANATEL (National Television Association).
As for the internet, it has been steadily becoming a relevant medium for advertisers. The explosive growth experienced by online media, which is estimated to have grown 28.7% in terms of ad spend in 2010 alone, is just a reflex of the high consumption that this medium has achieved among Chilean population. In fact, Chile is one of the leaders in the region in terms of internet penetration.
We are already observing an increase and specialization of social marketing (social networks), and a trend to mobile marketing in light of the exponential growth of smart phone users. The internet is, day by day, obtaining a more important role in the mix, and advertising agencies are taking measures to adapt themselves to these new needs by creating specialized areas for the digital world.
The print press has showed a downward tendency the last few years, which is directly connected to the increase of internet use, given the change of habits that it has caused among consumers, especially in their way of staying informed. The main challenge for the press has been the invention of new formats as they try to become more avant-garde and flexible.
There are two major holdings in the Chilean press market, which accounts for 80% of ad spend. The main group is El Mercurio (55% of SOI) with its brands El Mercurio, Las Últimas Noticias and La Segunda. All of these provide national coverage plus a strong presence in provinces through associated local media. The other important group is Copesa, which handles the brands La Tercera, La Cuarta and La Hora, all of them which provide national coverage. Copesa also is involved with some magazines including Paula and Qué Pasa, and radio stations such as Zero, Carolina and Disney FM.
Outdoor advertising (OOH) is experiencing an interesting tendency towards innovation, with an evolution to technology, including movement, light and sound on billboards. Traditional structures are being used less due to the search of more interactivity between the billboards and individuals. There is a strong presence of international groups working this medium, like CBS Group, Clear Channel, Stand Off and JC Decaux. Decaux has exclusivity for commercializing the advertising in Santiago’s subway.
Pay TV has almost doubled its penetration during the last three years from 35% in 2008 to current levels of 60%. VTR is the main actor in this medium, offering a wide range of channels both nationally and internationally. VTR commercializes spots during breaks especially defined for VTR. Satellite television is becoming a relevant player in pay TV, given the possibility of reaching locations where cable TV cannot access.
Magazines are a medium with several titles oriented to different demographics, some of them very targeted. Televisa Group stands out with over 20 titles covering interests such as lifestyle, home and family, and health and wellness. Other important magazine companies are Holanda Comunicaciones, Copesa and Tiempo Presente.
The radio scene is very developed in Chile with a large number of stations, nationwide and locally, offering different styles and themes oriented to different audiences. There are four dominant radio groups in the country: Ibero Americana Radio Chile (37.5% potential reach, which belongs to Spanish group Prisa), Grupo Dial (13% potential reach, belongs to Copesa), Cooperativa (8% potential reach), and Bezanilla Group (7% potential reach).
Marcelo Lazo, Managing Director
For more information:
National Televison Council
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Source: World Bank