In Argentina, businesses of all sizes and technical sophistication use Google’s search, advertising and content distribution services as an engine for their growth.
Deloitte published a study, commission by Google, evaluating the economic activity generated by Argentine businesses, content creators and developers that use Google services. Instead of estimating the direct economic impact of Google itself, the study took a broader approach.
It considers how businesses, content creators, and developers use Google services to contribute to economic activity. The analysis focuses on Google Search and AdWords, AdSense, and YouTube.
Deloitte defines economic impact as the contribution that businesses and content creators using Google’s Search, advertising tools, and productivity tools make to the economic output. The economic effects in terms of value added and jobs are estimated by measuring the revenues and income earned by Argentine businesses, content creators and developers who use Google Search, AdWords, AdSense and YouTube. In 2015 It was estimated that Argentine businesses using Google Search and AdWords generated between ARS$ 5,000 and ARS$ 18,000 million in economic activity from ad spends in these services. And this activity supported between an estimated 20,000 and 70,000 jobs across all sectors of the Argentine economy. Android has been the backbone of the growing usage of smartphone services in Argentina There was an estimated 25 million smartphone users in the country in 2015 and of those 94% of those were operating on Android OS.
The scarcity of labor force skills is seen as a great barrier to growth in Argentina. A World Bank’s Enterprise Survey found 34.2% of firms report that an inadequately educated workforce is stunting growth in Latin America & the Caribbean, this rate increased to 56.6% in Argentina. Google has worked to close this skills gap through several initiatives and an investment of about ARS$ 9 million in support for pilot projects on digital skills training across Latin America. Google is working to encourage this growth through several national initiatives that aim to solve these challenges, though the study notes it is too early to quantify the economic impact of these programs.