The mutual split is mainly due to growing creative differences, according to Milagros Plaza, Creativity's general manager.
"When we joined together in 1994, Young & Rubicam shared our creative vision, but that has changed recently. We have a different view of where our creativity should be focused," said Ms. Plaza.
Young & Rubicam will continue to manage the partnership's international clients, including Colgate Palmolive Co., United Airlines, DHL and Ericcson. Creativity will keep local clients including, International, Bimbo and Frugos, both Inca Kola brands, LG Electronics, Xerox del Peru and Honda.
Ms. Plaza said she is in contact with "one of the most creative agencies in the world, but I can't reveal the name right now. We will hopefully reach an agreement soon."
Peru's advertising industry claimed $250 million in billings in 1998, and analysts predict another 15% contraction for 1999.
As with many advertising agencies in Peru, Creativity has been diversifying its portfolio, offering direct marketing, corporate image and PR services.
Ms. Plaza said her company hopes to reach billings of $13 million this year, bringing it back to its 1997 level. The company's billings last year were $10.5 million.
Y&R is currently putting together its own team in Peru.
Copyright August 1999, Crain Communications Inc.