Africa's population is approaching the one billion mark and has been growing at an average of 5% over the last decade. Brand building in Africa is gaining momentum as brands that have stagnated in their home markets of USA and UK, scramble to make brand inroads in this highly watched after and fast growing emerging market.
The Digital Media:
It is widely acknowledged that spending on digital advertising is increasing faster than any other medium worldwide. According to surveys, a third of the companies that advertise online are already spending more than 10 percent of their advertising budgets there. Africa has joined the bandwagon with South Africa being among the top countries internationally in mobile advertising.
Each year, companies lose millions in potential sales to the region, not only because they underestimate the size and power of this market, but also fail to recognize effective emerging digital media for branding. From telecoms to travel, entertainment to politics, food to fashion, every sector is booming with opportunities that need tapping.
The Online Market:
According to Internet World Statistics, the Africa and Middle East (AME) region has in excess of 77 million internet users. To put that into perspective, the AME online population is almost double the entire online population of the UK (estimated 40m), 30% of China (253m) and 35% of the USA (220m). Most of the online properties are in the form of news and social media publications. The online media is fragmented with reach limited only to the countries which the publications cover. There is, however, a massive readership of these publications by the UK and USA Diaspora populations that follow up news about their home countries.
The above statistics, many experts agree, signals the emergence of a digital boom in the region.
The Mobile Market:
The mobile phone market for the region is expected to reach 485m by the end of the year, aa Jupiter Research report said. Although advertising on Mobile is still in its infancy in the region and mainly limited to SMS texting (82% of mobile marketing market), phone companies and other holders are developing unique solutions that resonate with the region's distinct attributes, for example the M-Pesa mobile money transfer by Safaricom in Kenya. In South Africa, Vodacom has started selling text ads to be placed on the 20 million free 'Please Call Me' SMS that is sent through its mobile network every day. The market is pregnant with out of the box solutions that could see it develop its own forms of mobile advertising specific to the region. Although there are set-backs due to handset capabilities and slow uptake of 3G technology, there are vast opportunities also for Mobile Paid Search, Mobile SEO, Mobile Display Advertising, Mobile Social Media, Mobile Banking and Mobile News Publications. The vast market and high mobile penetration rates married with high response rates of up to 25% especially witnessed in the South African market make Mobile Advertising relevant for brands with an Africa and Middle East strategy.
One Size Does not fit all:
There are differences in Digital Media development, consumer patterns, wealth, demographics and media consumption habits between countries and regions. Understanding individual country profiles and statistics is key to delivering relevant brand messages. Marketers with detailed and well researched predictions of where the demographics and consumer data will go in the future will take lead in the market. Africa is definitely a market that brands must include in their global strategy.