Argentina Market Overview

The third largest economy in Latin America, the country that snakes down the right side of the Southern Cone has immense natural resources, a diverse industrial backdrop, and an export oriented agricultural sector.

Argentina comprises of 23 provinces, and the autonomous capital city, Buenos Aires. Each province has its own individual constitution, under the overall umbrella of the federal system.

The best PR in Argentina can explain and interpret the idiosyncrasies of local tastes, and local laws throughout these provinces, ensuring a campaign can achieve genuine cut-through, thinking beyond the capital city.

Historically, Argentina was a major player on the global scene, and a founding member of the United Nations, World Bank, World Trade Organisation. It rates “very high” on the United Nations Human Development Index, second highest in Latin America.

Decades of political and economic uncertainty since the turn of the century took a toll on the country, but a fast-growing tech sector, and increased foreign investment and confidence in the new government are positive indicators for considerable growth. As a result, many international companies are now seeking to enter the market or expand their operations in Argentina and Public Relations and marketing communications, clearly planned and executed, are often key to success.

Particular growth sectors include IT and technology, agrifood, telecommunications, tourism, electricity, and safety equipment.

Of the 44 million people that are resident in Argentina, 92% live in urban settings, meaning there are vast swathes of the sizeable country (2.78million km sq) that are completely unpopulated. It is possible to drive for hours in parts of the rural landscape, without seeing a soul. The population is divided almost evenly between men and women, although women tip the population balance at 51.1%. Women in Argentina also outlive men, with a life expectancy of 80 years, compared to 72.5.

Something the best Argentinian PR agencies and marketing practitioners recognise is the fact women generally make the buying decisions in Argentine households, tending towards conservative purchasing, although this is shifting in the wealthiest sectors of society. More than half of the population is aged 25 – 69, while the average age is 31.

The current government, in power since 2015 is seen as pro-business and more open to the global economy than its predecessor. While some aspirational measures have been slowed by environmental factors (unemployment, high inflation rates), other initiatives are already bearing fruit. Since January 2017, 21% Value Added Tax (VAT) paid on accommodation services can be refunded to tourists, a move that was expected to boost local tourism by 95,000 in 2017, and create nearly 8,000 new jobs. The previous month, 135 new air routes were opened to commercial carriers, who in turn, would bring inward investment of USD$1.7 billion over a four-year period.

To be successful, international companies must understand how to react to the local economy and to consumer needs. An effective and experienced PR agency in Argentina will instantly spot the “do’s” and “don’ts” based on client profiles, and stated objectives, devising and executing locally appropriate and effective campaigns and business systems, to capture consumer imagination and loyalty. As an example, Airbnb saw consumer growth of 139% (582,000 users) when it allowed for payments to be made in pesos, rather than just in US dollars.

Particular growth sectors include IT and technology, agrifood, telecommunications, tourism, electricity, and safety equipment.