Argentina Special: Overview

There’s a certain gallows humour buoying up the Buenos Aires ad community, as Olivia Atkins discovers. Years of economic instability have taken their toll on budgets and business, but the plucky Argentines keep bouncing back with ever more creative, ever more comical work that brings home not just the bacon, but also – count ’em – 22 Lions at this year’s Cannes Olivia Atkins

Instability, inflation and insecurity: Argentina’s economic woes have affected the nation for so long, its citizens are, quite frankly, bored of discussing them. The upcoming general election, on the other hand, to be held at the end of October, just after this issue goes to press, inspires opposing reactions. Some boldly (and proudly) speak their minds, while others refuse to comment. Undoubtedly, the majority of Argentinians are sceptical about whether a new president can resolve the omnipresent financial crisis, considering its roots date back to 1998’s Argentine ‘Gran Depresión’ (Great Depression). But the more hopeful and optimistic among them – they do exist – believe that positive change could lie just around the corner.

In spite of the tough conditions, including tighter production budgets and higher costs of living, Argentina and its agencies are thriving creatively – this year 22 Lions made it back to the homeland. “In 2012, the majority of the country’s Cannes Lions were in Press and Outdoor. Three years later, they are earning Titanium and Cyber Lions, which clearly shows their fierce progress,” says Mark Tutssel, Leo Burnett Worldwide’s chief creative officer.

Those that have remained on Argentine soil are ambitiously fighting for recognition, producing high-quality work with brilliant ideas at the core. But the question plaguing the country is whether its advertising industry can still afford to play on the world stage. Tutssel claims that Argentina’s current spend on digital ads is the second lowest in the world. Yet he expects to see rapid growth in the coming years, as the country is also ranked the second highest for projected digital spend growth and is the fastest growing paid media market in the world – paid media has seen a 32 per cent increase since 2014, taking the total to US$5.1 billion.

Perhaps it is time for renewed hope; what other choice is there? Speculating on his nation’s situation, motion design studio 4Humans’ partner/executive producer Patricio Verdi Brusati says, “Argentina is for the bold… and for the ones that don’t have another option.”

The growth of investment in digital suggests promise for the medium, but it doesn’t reflect general opinion in Argentina. TV remains the nation’s favourite advertising platform. Clients certainly prefer the safety of being able to reach and engage wide audiences through a guaranteed slot on the air, thereby overcoming boundaries set by age or class. “Clients invest most of their annual budget in TV, rather than the growing market of digital media,” says executive producer Mauro Groisman at Jacaranda Films. This is due to the connection on the bigger screen being harder to imitate on smaller digital devices.

Advertising on TV is seemingly ingrained into Argentina’s history and culture. As is humour – it transcends boundaries and has become a national advertising characteristic, acting as a remedy for economic woes and highlighting Argentina’s ability to laugh at itself. Argentine humour connects audiences to brands – something many believe is reflective of the nation’s, and in particular Buenos Aires’, immigration culture. As Groisman explains, “Our huge immigrant community from countries like Italy and Spain has created a tradition of fun, jokes and over-exaggeration. Humour is the base of our communication, and the most effective tool when it comes to reaching a wider audience. And next to humour, there is friendship.”

Making dollars out of the crisis

The economic crisis may end up loosening Argentina’s traditional attachment to TV. Some production companies suggest that clients can no longer afford to pay for a TV slot. “Because of the crisis, the clients can’t pay the huge charge to screen a spot on [primetime] TV, which is why companies have started to communicate through other platforms like online and mobile,” claims Gabriel Carratu from production services company Vagabond Films. And, like elsewhere in the world, Argentina’s younger generation are big users of new media.

Still, Argentina’s pace of digital adoption can seem frustratingly slow when compared with elsewhere. Perhaps Argentine agencies and clients are too stuck in their ways to embrace new media. But do they have a choice? As Tutssell points out, “It’s not about television, it’s about film. We live in a screen age and film lives on screens of all sizes.” Argentine clients and agencies must realise that advertising is no longer just about TV, but about ideas and making them suitable to each medium.

Opinion is split over whether Argentina’s uptake of social media and digital technology is slow or proportionate to the region. Digital platforms are growing but are still outnumbered by TV investments. This may not be that surprising  when you consider that 4G was only introduced a few months ago. “Being a country with poor investment in internet technology and phone air data, digital platforms are reached by the younger market only. I believe Argentina’s digital world still has room for exploring,” Groisman says. Agencies, clients and production houses are still learning how to make the most of all the new media and channels available.

It all comes back to the economy

Whether people think the future is in TV or digital, the nation’s unstable economic situation means there is little perceived security in the future, whatever form it takes. Although spend in certain sectors, like digital, may be increasing, overall advertising budgets are being reduced and sometimes scrapped altogether.

The official exchange rate fluctuates so often that currency exchanges are under constant restriction. Citizens have to apply to get hold of dollars to leave the country, hence the emergence of a black market currency exchange (known as the blue dollar rate). There is low local investment in advertising, as the Argentine peso carries little value, especially against the dollar. Few foreigners come to Argentina to work as the peso is so weak. But on occasion, other Latin Americans work in junior roles and gain experience in the industry. On the whole, the tenuous financial situation has made the public worried about employment security, says production service company Poster Films’ executive producer Aldana Pagani, and has cost Argentina its former place as one of the top South American countries for production services.

But some believe that Argentina’s hardships are actually putting this sector in a better position. Tighter budgets are forcing creatives to be, well, more creative by maximising on resources and pushing for greater work. “Government changes have always benefitted production service companies, such as ours,” says Groisman. “We end up being more competitive than before. The service companies are a rare industry [in Argentina] as we always improve with these type of changes.” Others, such as Altana Films, have decided to set up shop abroad to spread the risk and increase work opportunities. Having recently opened offices in Chile and Uruguay, the company is actively embracing the more production-friendly environments of neighbouring South American countries.

One benefit of the crisis is that international clients are being tempted to Argentina by its seemingly cheap prices. Take Ocean Films, which works solely with international clients. “We aim to be an international company with a local flavour,” says executive producer Tif. He lists good weather, exotic locations and easy-on-the-eye locals as some of the nation’s main attractions. Not to mention its low price tags, although, as he points out, “Argentina used to be quite an inexpensive place to shoot a few years ago… Today, prices have grown a bit and they are now similar to those of Eastern Europe.” He adds that overseas clients can expect international production standards from local crews, due to their experience hosting global productions for TV and feature films.

Hope and doubt are constantly jostling in the Argentine consciousness. While many clients may be tempted to play it safe in the run-up to the election, Poster Films’ Pagani says it’s the agencies’ job “to convince clients that it is not risky to invest in creativity”. Though the country may not offer stability any time soon – and predictions about Argentina’s depreciating currency are constant – the key question on everyone’s lips is whether the crisis can actually get any worse. “I don’t see that it could be as bad as it was in 2001 [the penultimate year of Argentina’s Great Depression saw violent protests, deaths and the declaration of a state of emergency] because we have learned a thing or two,” says Verdi Brusati. “But there will be some rock’n’roll going on soon.”

Taking Argentina’s erratic pulse

Ultimately, all that is certain about the future of Argentina’s advertising industry is its unpredictability. Optimists are embracing change, adapting to new media and being patient with clients.

“The industry fluctuates with the economy,” says Luis Sanchez Zinny, ECD of Leo Burnett Argentina. Argentina’s 22-Lion win this year suggests that, creatively, it’s on an upward trajectory. Compared to the rest of the region, Argentina ranks well against some of the continent’s highest performers, including Brazil and Mexico.

There’s no doubt that the nation’s current extreme situations have pushed Argentinians to become more dynamic, ambitious and even more creative. As Vagabond’s Carratu concludes: “Argentina is like a heartbeat. It goes from the top to the bottom all the time. Right now it is at the bottom, but it will go to the top soon.”