PRWeek Global Thinktank | Americas

VitalStatistics

Population: 16,746,000
Monetary unit: peso (Ch$)
Capital city: Santiago
Major languages: Spanish
Major religions: Roman Catholic 70.0%; Protestant/independent Christian 15.1%; atheist/nonreligious 8.3%; other 6.6%. (For population age 15 years and older)
Ethnic composition: mestizo c. 72%; white c. 22%; Amerindian c. 5%, of which Araucanian (Mapuche) c. 4%; other c. 1%
Age breakdown: under 15, 23.6%; 15–29, 24.9%; 30–44, 21.2%; 45–59, 17.5%; 60–74, 9.5%; 75–84, 2.7%; 85 and over, 0.6%
Life expectancy: male 74.1 years; female 80.8 years
Education: no formal schooling/other 5.4%; incomplete primary education 24.6%; complete primary 8.7%; secondary 43.9%; higher technical 4.9%; university 12.5%
Urban/Rural split: urban 86.9%; rural 13.1%
Income per household (USD): -
Broadband internet users (%): -

Source: Encyclopedia Britannica

Introduction

In March 1990, Chile ended General Pinochet’s 17-year dictatorship and elected a government which rapidly set about liberalising its economy. The country has flourished ever since. GDP has grown by an average of 4% every year since 1999. In 2006, Chile became the country with the highest nominal GDP per capita in Latin America.

Much of that growth is the result of trade agreements with other countries. This culminated in May 2010 with the country’s accession to the Organisation for Economic Co-operation and Development (OECD), the first South American country to join that select club.

In recent years the country has been somewhat insulated from global recession by the Government’s policy of accumulating budget surpluses during periods of economic growth. Despite the February 2010 earthquake, which was one of the ten strongest ever recorded and which, according to the Chilean Ministry of Finance, cost 17% of GDP, GDP grew more than 5% in 2010.

Yet, despite this economic growth, the Chilean PR industry is struggling to establish itself. Industry insiders explain that there are three obstacles to overcome: a lack of professional skills and experience among Chilean PR practitioners, a failure to embrace the digital revolution, and a reliance on export rather than internal consumer spending.

Media

The media is certainly not a problem. The state owned television network, Television Nacional de Chile , is self-financed by commercial advertising, so is not under government control. This is the foundation for a relatively democratised media. There are also many privately owned television stations, including TV, Canal 13, Chilevision and Mega. Chile also hosts around 250 radio stations.

The print media sector is buoyant. Press, El Mercurio, La Tercera and Diario Financiero are the key print titles on the market.

However, it is digital where the growth opportunities really lie. More than half of the

country’s households have internet connections, and more than half of the population is on Facebook. Facebook is the main social networking platform, with Fotolog and Twitter trailing behind.

Despite this, industry insiders say that Chile’s PR industry has been slow in adopting digital media. Some argue that this is because the main news sites are offshoots of the print publications, and so PRs do not need to pursue separate campaigns for them. However, with a rapid smartphone uptake, brands are beginning to realise the importance of having an effective digital media strategy.

As Steven Adler, Commercial Director at home automation company Mi Tiempo Touch, says: “The main change to PR in Chile in recent years has been the massive increase in popularity of social networks, mainly Twitter and Facebook. Just a few years ago, PR was only for people and companies that could afford a sustained strategic communications campaign; now they have social media, a new, popular and low-budget way of doing PR.”

Major Brands

Chile's economy is based on the export of minerals. It is the world's largest producer of copper. While companies in the extractive industry are usually strong on CSR and public affairs, they are not noted for their large-scale consumer campaigns, and to a great extent this is what explains the sluggish growth of Chile’s PR industry, relative to the growth of its economy as a whole.

However, there are multinationals in the country that seek to use PR to build brands. Telecommunications companies such as Telefonica, Nokia and Entel are all strong PR performers. Coca-Cola is one of the country’s leading consumer firms and Banco Chile and Banco Santander are market leaders in the Chilean financial sector.

Agencies

Chile’s PR industry is split fairly evenly between local and global agencies. At the end of 2009, PODER magazine carried out a study to rank the most influential PR firms in Chile. The survey found Hill & Knowlton to be of the most influential global agencies, alongside Burson-Marsteller, with Tironi y Asociados, Immaginaccion, Extend and Feedback Comunicaciones leading the way locally. Ogilvy PR has an increasingly strong presence.

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Focus onChile

VitalStatistics

Introduction

Media

Major Brands

Agencies

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