Internet Market Environmentin Argentina

Siteengine Inc. (Tokyo, Japan)17nd June, 2014

http://www.siteengine.co.jp/en/

info@siteengine.co.jp

About Argentina

Area 2.780.400 km2

Population 41.660.417 (2013 est.)

GDP(ppp) $771.008 billion (2013 est.)

Internet TLD .ar

Official Language Spanish

Religion Catholicism 76,5%

Currency use Peso ($) (ARS)

Calling code +54

Mobile subscribe 41 million lines (2013)

Internet User 31,9 millions (2013)

Source: Wikipedia Picture: www.cia.gov

Ethnic group in Argentina

Ethnic group % of total

European 78,5%

Amerindian 17,5%

African 4%

Ethnic group

European

Amerindian

African

78,5%

17,5%

4%

Source: Wikipedia

Argentina Age Structure

Age Structure% of total

(2014 est.)

0-14 24,9%

15-24 15,7%

25-64 48,0%

65- 11,4%

Source: www.cia.gov

Internet users in Argentina

Internet users in 2013: 31,9 millions

Internet users in Argentina is increasing year by year

-

5,00

10,00

15,00

20,00

25,00

30,00

35,00

2010 2011 2012 2013

Users in

Argentina

(millions)

31,9

millions

Source: http://www.cace.org.ar/

Mobile Subscribers

In Argentina, even though there is the same number of subscribers as habitants, not everybody has a phone. Some people have more than 1 subscription.

Mobile subscribers: 41 million subscribers. There is the same number of subscribers and habitants.

-

5

10

15

20

25

30

35

40

45

2010 2011 2012 2013

Millionsubscribers

41 million subscribers

Source: http://www.cace.org.ar/

Fixed Phone Subscribers

In Argentina, the amount of fixed phone subscribers has decreased a little bit lately, but the overall trend is quite stable.

Fixed phone subscribers: 10,2 million subscribers in 2013.

9,5

9,6

9,7

9,8

9,9

2010 2011 2012 2013

10,2 million

subscribers

Millionsubscribers

Source: http://www.cace.org.ar/

Internet Monthly Rate in Argentina

Mobile Internet Package Data Plan Price

Claro 500 MB 20,8 (US $) / month

Personal 500 MB 20,8 (US $) / month

Movistar 1 GB 36,8 (US $) / month

Source: http://telefonica.com.ar/

http://www.claro.com.ar/

http://www.personal.com.ar/

In Argentina, the broadband internet works like Mobile internet packages. They offer speed of 256Mbps and after consuming the GB

from the plan, they can use internet at a speed of 64Mbps.

Telecom Statistic, end of 2012

- Mobile subscription: 41 million subscribers- Fixed and Fixed WLL: 7,4 millions connexions- Mobile Broadband: 17 millions connexions- Internet user: 31,9 million users

Source: http://www.cace.org.ar/

Top websites in Argentina by alexa.com

1 Google.com.ar

2 Facebook.com

3 Google.com

4 Youtube.com

5 Live.com

6 Mercadolibre.com.ar

7 Yahoo.com

8 Lanacion.com.ar

9 Wikipedia.org

10 Clarin.com

1 Google.com.co

2 Mercadolibre.com.ar

3 Lanacion.com.ar

4 Clarin.com

5 infobae.com

6 Ole.com.ar

7 Tn.com.ar

8 Santanderrio.com.ar

9 Ciudad.com.ar

10 Minutouno.com

Top local sites in Argentina by alexa.com

Facebook User in Argentina

In 2013, there were 16,2 million Facebook users.

68,9% of the internet users in Argentina uses Facebook.

By 2018, it is believed the number of users can increase up to 22,4 millions.

Source: http://www.statista.com/

Twitter vs Facebook in Argentina

Twitter is very popular in Argentina. It has more than a 10% of penetration rate.

It’s the TOP 5 country that uses Twitter. Only Saudi Arabia, Indonesia, Spain and Venezuela are ahead of Argentina.

Source: Peerreach

Top Facebook Page in Argentina

Page Type Local Fans Fans

1 Facebook for Every Phone Entretainment 12.209.693 454.647.873

2 Facebook Media 4.972.103 151.886.177

3 Facebook Media 4.963.733 22.045.688

4 Sin Codificar Entretainment 4.062.646 4.490.158

5 Quilmes Cerveza Brands 3.843.232 4.027.106

6 BOCA Sport 3.607.095 5.228.792

7 Coca-Cola Brands 3.487.273 83.623.990

8 Club Atlético River Plate Oficial Sport 3.242.755 4.185.086

9 The Simpsons Entretainment 3.200.765 73.931.881

10 Daddy Yankee Celebrities 3.188.744 23.936.028

Source: http://www.socialbakers.com

Argentine Popular Youtube Channel

Source: http://www.socialbakers.com

Fastest Growing Channels in June 2014

Source: http://www.socialbakers.com

Online Business in Argentina

+ In Argentina, e-commerce has been empowered by many factors,some of them are:

➀ The continuation of the increase of internet users. ② The increase of services and products offered online.③ The security, use of bank cards and many others...

+ Even if the number of internet users stopped accelerating (because of demographic limitations), the online buyers keeps increasing.

+ The quality, price, and services from each offer, start to be the main difference to keep increasing the e-commerce.

Source: http://www.cace.org.ar/

Online Business in Argentina

Source: http://www.cace.org.ar/

E-commerce:

INCREASE

48,5 %3.340 millions

of US Dollars*

4.960 millions of

US Dollars*

* The exchange rate in 2012-2013 has been aproximated to 1 USD = 5 peso (ARS)

B2CBusiness to Client:

4.600 millions USD

C2CClient to Client:

360 millions USD

Online Business in Argentina

E-commerce users in Argentina

Source: http://www.cace.org.ar/

0,4 0,4 0,6 0,9 1,2 2,0 2,74,0 5,1

6,99,0

9,612,4

3,7 4,15,7

7,610,0

13,0

16,0

20,0

23,0

26,528,8

30,5 31,9

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

e-commerce users internet users

Millions of users

The number of internet and e-commerce users is increasing, we can see 2 different trends:· The number of internet users will not accelerate anymore.· The number of e-commerce users is accelerating.

Online Business in Argentina

Annual expenditure of e-commerce users:

Source: http://ccce.org.co

183

597

935

1.137 1.191 1.179 1.139 1.012 1.035

915

1.288

1.670

2.000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Pesos (ARS) / year spent by e-commerce users.

Nowadays, Argentine e-commerce users spend an average of 2.000 pesos (ARS) [246 USD] every year.

E-banking in Argentina

In Argentina, the 72% of the active population uses online banking services.

Even if the number of people that uses online banking is increasing, the online banking in Argentina isn’t growing that much.

Source: http://www.rosarion.com/

E-banking in Argentina

Peso (ARS) is the official currency. The amount of ATM is increasing.

0

10

20

30

40

50

60

2009 2010 2011 2012

Number of ATM /

100.000 habitants

Source: http://datos.bancomundial.org

E-banking in Argentina

+ The usage of credit and debit cards in Argentina is increasing.

+ The number of credit cards had a boom from 2003 and in 2013, 85% of the economically active people from Argentina had a credit card.

+ So the number of credit cards in Argentina has little room to keep growing.

Source: http://www.euromonitor.com/

From E-banking to Internet Market

+ The E-banking is very important for the expansion of the e-commerce. They still need to work on the "easy going" and truthfulness of the pay systems in order to convince the customers to choose the online method in their purchases.

+ Debit Card or Credit Card is the most used payment method.

Starting a new business in Argentina

The following URL provide the information to Start a new business in Argentina.

http://www.icaew.com/en/library/subject-gateways/doing-business-in/argentina

http://www.doingbusiness.org/data/exploreeconomies/argentina/starting-a-business

Popular in Argentina

Portal Bank

MobileCarrier

NewspaperTV Channel

Internet Market(C2C)

www.twitter.com/ar_gentina

Founded: March 2006

CEO: Dick Costolo+ Twitter is an online social networking and miroblogging service that enables users to send and read short messages of maximum 40 characters.

+ It gained worldwide popularity and in 2012 they had already 500 million users and 340 million tweets per day.

+ Argentina is the TOP 5 in the world using Twitter.

http://www.santanderrio.com.ar

+ Banco Santander Río is a commercial bank and financial services company and affiliate of Santader.

+ It was founded in 1968 and now is the 3rd

largest bank in Argentina. However, it is the bank with the largest extention of ATMs in the country.

+ The Headquarters are located in Buenos Aires.

CEO: Enrique Cristofani

Parent: Santander Group

+ Santander is one of the largest banks in the world. Nowadays, it is expanding its business around the world.

+ “Mercadolibre” in Spanish means “free market”.

+ It’s eBay’s Latin American partner. And it’s the number one e-commerce site in Latin America.

+ Mercadolibre was established in 1999 in Argentina and rapidly expanded to other countries of South America and Mexico.

+ Traded as NASDAQ: MELI

+Type: e-commerce

www.mercadolibre.com.ar

+ It’s a wirless telecommunications company owned by América Móvil. It was born as the result of unification of Comunicación Celular S.A and Telmex Colombia S.A.

+ On December 2013, they had more than 28 millions of mobile subscriber (from 50 millions of the whole country).

+ They also provide fixed communications.

+ It is headquarted in Córdoba, Argentina.

+ Owned by América Móvil

+Founded in 2012.

+Type: mobile carrier

www.claro.com.ar

+ Telefe it’s a television network. It’s very popular in Argentina.

+ From it’s privatization in 1989, it has always been the top 1 in Argentina, expect for the years 2010 and 2011.

+ Nowadays, it is under the direction of Gustavo Yankelevich’s, who managed to return the company to the top 1.

+ Owned by Telefónica Argentina

+Founded in 1961.

+Type: TV chanel

www.telefe.com

+ Clarín is the largest newspaper in Argentina. It has a 44% of the market share in Buenos Aires. But it has lost some popularity in the overall Argentine market. In 2012, the printed daily version accounted nearly 21% of the market.

+ Acording to Alexa.com it is the Spanish newspaper most visited in the internet.

+ Owned by: Clarín Group

+Founded in 1945.

+Type: Newspaper

www.clarin.com

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