6. Growth in internet access in the region offers
big opportunities for brands and marketers…
…but,
Digital marketing is wasted if not
tailored to the local market
Or worse, can actively create brand-resistant consumers
Consumers hold the power
Need to understand how consumers
are using the internet and where they
are in their digital evolution
6
7. 0
10
20
30
40
50
60
Tanzania
Ghana
India
Uganda
Kenya
Pakistan
South Africa
Indonesia
Egypt
Thailand
Nigeria
Philippines
Mexico
Peru
Vietnam
Ukraine
Romania
China
Brazil
Morocco
Russia
Sub-Saharan Africa
Saudi Arabia
Turkey
Greece
Portugal
Italy
Colombia
Chile
Poland
Malaysia
Hungary
be different to developed countries
Spain
Ireland
Internet Penetration
Czech Republic
Argentina
Hong Kong
UAE
France
Taiwan
Israel
Slovakia
Austria
Estonia
Singapore
Belgium
% Started using the internet less than two years ago
US
Australia
Japan
Canada
Germany
to the internet and still becoming acquainted – usage will
Switzerland
With strong internet growth in Africa, most users are new
South Korea
UK
New Zealand
Luxembourg
Finland
Denmark
Netherlands
Sweden
Norway
7
8. Mobile is key to Digital strategy in Sub-Saharan
Africa
Access internet via…
Global 36 97
Nigeria 82 64
Ghana 61 75
Uganda 31 97
Tanzania 65 82
Kenya 77 64
South Africa 68 60
Different countries within SSA have different development paths –
Mobile is key in SSA
9. Mobile is emerging as the key access point
for internet users in South Africa
Used to access internet in last month (%)
68
39
23
6 7 4 1 1
PC at home PC at work PC at PC at Internet PC elsewhere Mobile phone Tablet Internet TV Games console
school/university café
Question: S5; Device use for Internet access in past 4 weeks Base: All respondents;
1000
9
10. Younger and older internet users experience the
internet differently – take this into account when
designing digital strategies
Accessed the internet via…
90%
85%
Mobile Phone
50% PC
24%
15-20 years 21-24 years 25-34 years 35-44 years 45-54 years 55-65 years
11. Mobile internet users prefer mobile as an internet
access point - and this will increase as access speeds
increase
“I would be happy doing all
my Internet surfing via my
mobile” 68%
“I would like to access the
Internet more on my
mobile phone, if it were
more convenient, or had
higher speed or
57%
connectivity”
Question: H4, A2; Mobility attitudes, Internet attitudes Base: Mobile users;
11
12. Once adopted, digital media is close to traditional
media in terms of daily users on board
Daily users (%)
68
59
50
29
21
6
TV Internet for leisure Radio Internet for work Newspapers Magazines
Question: M1; Media use Base: All respondents; Size 1000
12
13. And there is a strong incidence of people engaging in
entertainment media (TV & radio) whilst accessing
internet on mobile
Offline activities done whilst also online (%)
PC Mobile
35
Find out more information just seen advertised
18
30
Listening to radio
53
21
Watching TV
57
7
Reading magazine/newspaper
12
6
Playing video games
10
Shopping (not on the Internet)
22
Find out info about product in-store
16
Question: [H3]; [Device use for Internet access in past 4 weeks] Base: [All respondents];
605,686
13
14. 0%
10%
20%
30%
40%
50%
60%
70%
Tanzania
Ghana
India
Uganda
Kenya
Pakistan
South Africa
Indonesia
Egypt
Thailand
Nigeria
Philippines
Mexico
Peru
Vietnam
Ukraine
Romania
China
Brazil
Morocco
Sub-Saharan Africa
Russia
Saudi Arabia
Turkey
Greece
Portugal
Italy
Colombia
Chile
Poland
Malaysia
Hungary
Spain
Ireland
Internet Penetration
Czech Republic
Argentina
Hong Kong
UAE
France
Taiwan
Israel
Social networking is seen to be the most
Slovakia
important online activity in most of Africa
Austria
Estonia
Singapore
Belgium
% Most important online activity – social networking
US
Australia
Japan
Canada
Germany
Switzerland
South Korea
UK
New Zealand
Luxembourg
Finland
Denmark
Netherlands
Sweden
Norway
14
15. In contrast to Global internet use, Social is
far more relevant than e-mail
Global
Key activities on internet (% use)
32
26
10
58
9
6
18
13
SSA
4
3
16. Facebook is visited weekly by three
quarters of internet users
Visit daily:
54% 30% 5% 3%
Visit weekly:
73% 59% 10% 10%
Question: [B6]; [Frequency of visiting websites] Base: [Total];1000
17. Social networking users are highly active online, but it is
all about communicating with their network – brands
need relevance to become a part of the conversation
Weekly users (%)
Active Passive
Write a post / message / status
update on my social network 60 Check my social network accounts 56
Comment or respond to other Visit / check / read other people’s
people on my social network 58 19
blog or forum
Use online chat / instant messaging 22
Stream music 18
Post comments on, or rate other
people's blogs, forums or reviews 21 Download videos / movies / TV shows
or music 15
Upload photos 19
Stream video 13
Write my own blog 16
Download photos or look at pictures
at photo sharing websites 13
Upload video or music 14
Forward / share a link 14 Download an “App” or application 10
Post Status updates or messages on Visit / read / other people´s micro
a micro-blog 11 blog 9
Question: B12; DL Sub-activity usage Base: All respondents; 1000
18
18. While a significant proportion of internet users in SA go
online daily, interaction with brands is still quite limited,
with researching brands being the main brand-related
activity
Global South Africa
Internet
30% 14%
Penetration
% of internet % of internet
users that: users that:
Are part of 84% 81%
Social Network
Go online daily 68% 59%
Are brand fans
33% 8%
on SN
Write about 47% 7%
brands online
Research brands 81% 30%
online
19
19. Tanzania
Ghana
India
Uganda
Kenya
Pakistan
South Africa
Indonesia
Egypt
Sub-Saharan Africa
Thailand
Nigeria
Philippines
Mexico
Peru
Vietnam
Ukraine
% reading about brands
Romania
China
Brazil
Morocco
Russia
Saudi Arabia
Turkey
Greece
Portugal
Italy
Colombia
Chile
Poland
Malaysia
Hungary
Spain
Ireland
Czech Republic
Argentina
Internet Penetration
Hong Kong
UAE
France
presence on the internet is still under-developed
Taiwan
Israel
Slovakia
Austria
Estonia
Singapore
Belgium
are to read about brands on the internet – In Africa, brand
US
Australia
Japan
Canada
Germany
Switzerland
The higher the internet penetration, the more likely internet users
South Korea
UK
New Zealand
Luxembourg
Finland
Denmark
Netherlands
Sweden
Norway
20
20. Messages are not in the control of brands
Even a stranger on the other side of the world is trusted more…
% Agree
“What other people say about
brands can be trusted more than
what the brand says themselves”
57%
“I trust the comments my friends
write about brands” 54%
“I trust the comments people
I don‟t know write about brands” 41%
21. Very few consumers write about brands, but those
who do believe their interaction influences the brand
% Agree
“Posting comments online is an effective
way to influence companies” 68%
“I expect companies to contact me if I
write something about them” 34%
22
Question: [I8a]; [Attitudes to comments & reviews] Base: [All Writers]; 73
xx
22. Though there are many reasons to express the
opinion online, main causes are to praise, to
seek advice and to share opinions
2
15
48
42
To praise a brand 28
To criticise a brand
Ask advice
Offer advice 45
Share answers/opinions
Share opinions w/communities 45
To share cool stuff brands produce
To receive customer service
31
25
Because I‟m rewarded for doing so
Question: [I8]; [Reasons to write about a category] Base: [All Writers];73 *
*base size for this demographic is between 30 and 74. Results are therefore for illustrative purposes only
23
23. Information on products and peers as reference
groups motivate consumers to join a brand
community
(%)
What’s in it for me? Promotion/special offer 10
Competitions/prizes 8
Further Research More information about products/services 15
Information about brand ethics 7
Connect with people behind the brand 5
Access brand content 5
Brand Interaction Passionate about the brand 9
Show that brand is important to me 6
Giving & Receiving Feedback Give brands input 7
Receive customer service 6
Friend Interaction Friends doing the same 14
Connect with other fans 9
Miscellaneous Use specific apps/games 4
Support a cause 7
Question: [I3a/I3b]; [Reasons to join a brand group/community] Base: [Social Networkers & Micro Bloggers]; 891
24
24.
25. Digital needs to play a supportive/complementary
role to traditional media in Sub-Saharan Africa
Global
Recommendations Consumer journey touchpoints –
from 38 influence on product choice
friends/family
Product review
website 28
Expert review
website
28
Price comparison
website 27
Consumer
opinion blog 27
TV ad 26 39 TV Ad
Recommendations from
Recommendations from
24 31 friends/family
sales assistant
22 Ads in newspapers/magazines
SSA
26. Pre-purchase browsing is relatively low in SSA
compared to global norms. Lower incomes and cost of
internet access are holding back interest
Ever browse or pre-purchase shop via…
Mobile PC
Global 62 79
Nigeria 17 6
Ghana 17 22
Uganda 7 8
Tanzania 28 25
Kenya 13 15
South Africa 28 43
27. Online shopping is still under-developed in Sub-Saharan
Africa. But, mobile shopping likely to play a bigger role in
online shopping in future
Ever shop via…
Mobile PC
Global 50 73
Nigeria 4 6
Ghana 5 4
Uganda 5 5
Tanzania 19 16
Kenya 5 4
South Africa 10 18
28. Preference for offline purchasing is strikingly high
compared to online across all categories
Bought online Bought offline
Music 5% 43%
Travel 5% 10%
Movies 4% 36%
Software 4% 20%
ISP 2% 7%
Cosmetics 1% 52%
Skin Care 1% 54%
Hair Care 1% 57%
Clothes & Shoes 1% 78%
Insurance Policy 1% 9%
Banking 1% 12%
PC 1% 11%
Question: E6; Purchased on or offline Base: Category Purchasers;, 1000
29
29. The Digital Growth Index utilises these four components
to provide a single KPI to describe the size of the
opportunity in each market
Users
Size of
Scale,
audience Motivations,
Behaviours
Consumers Advocates Customers
Opportunity
to engage Path to
Brand Building Brand Buzz
Purchase
A single number KPI
score The Digital Growth Index
30
30. The Global Digital Growth Index
High Penetration, Low Index – High Internet High Penetration, High Index–
Utilise large reach, engage outliers Penetration Major opportunity, invest heavily
Low Growth High Growth
Index Index
South Africa
Low Penetration, High Index –
Low Penetration, Low Index– Low Internet Drive growth through engaged early
Tap into latent demand, plan for Penetration adopters
future opportunity
31
31. Developing markets
These markets are held back by either low access to
digital, poorer infrastructures or low incomes
reducing the relevancy of a brand conversation
Low Digital Growth Index
Yet aspirations run high, and huge latent demand
Argentina Peru
Internet Penetration
exists
Egypt Philippines
Ghana Romania Mobile has provided a gateway to access in many of
these markets. Marketing communications must
Indonesia South Africa also be delivered through this channel
Kenya Tanzania
Morocco Thailand The desire to communicate, and join social networks
is a key driver in these markets
Nigeria Uganda
Pakistan Give them the means to talk about your brand; being
seen as a brand that directly empowers users by
Low
partnering with these social networks / content
providers and sponsoring access
32
32. To sum up…
• Internet growth and evolution offers new opportunities for marketers to
engage with consumers
• But, internet penetration in SA still low and growth behind the rest of the
continent. For most people the experience of the internet is new, is different
to what it was before, is mobile and is social
• High costs and barriers of access mean internet penetration and usage is still
low and other traditional media still play a dominant role
• The future of internet in South Africa is clearly mobile and marketers need to
focus on interactions in the mobile space, with different strategies for mobile
internet and fixed line, targeting different audiences and needs
• Brand interactions via internet in SA are still very low. What works elsewhere
will not necessarily work here.
33. and…
• Digital marketing in SA has to incorporate social media and traditional media
• Encouragement and incentivisation need to be used to overcome barriers to
experiment and expand use of internet via mobile (other than social networking)
– “whats in it for me” should be asked of any digital campaign
• Social networks can have a big influence on brand perceptions and people trust
comments people say about brands online – need to ensure brands have an
active social media and Customer Experience Management strategy
• Online purchasing still low in SA – need to make people more familiar and
confident in using internet – need to bring down data costs before this can
happen
…and online pre-shop and shopping is likely to be predominantly via mobile
phone in future – need to be thinking mobile in terms of design and
consumer interaction
