Africa is often perceived as being aggressive and unstable, with only the bad aspects highlighted. Many South Africans seem reluctant to get involved up north. Celia Collins is one of the few South Africans in this industry who understands media on the African continent. She gives insight into the state of play.
Cross posted from themediaonline
In the last 20 years, media moguls have grown and developed, not based on political connections, but from a position of wanting to add value and promote smarter thinking for all.
Most major networks have realised that Africa is the continent of opportunity – especially in the fast-moving consumer goods (FMCG) and cellular industries. Africa may not have the same per capita attraction as Europe, but it certainly has the most potential. If US$100 000 were invested in the United States, the return on investment (ROI) would be insignificant. But if the same amount were invested in Africa, the ROI would be far greater from a market share point of view.
Africa has been rapidly colonised by competition in terms of where agencies and their clients go and where they invest. Political stability on the continent is far better than many people think. For example, there is huge growth in Angola and the DRC, with Zimbabwe also showing underlying development.
If the logistical business framework is in place, marketing will naturally follow. The first step is to develop the necessary infrastructure.
The good
Africa is laden with amazing opportunities just waiting to be discovered. Residents are hungry for information, are always looking for new opportunities and the regions don’t have the limiting legislation of many European countries, for example. If ideas or Eurocentric marketing concepts offer simple solutions, these can be easily transferred from SA to any other African country.
What works in the favour of the African work ethic is the ability to keep business churning in the face of adversity and unreliable supplies of the most basic resources. In Africa, generators are a standard feature in any business. However, when the power goes out in SA, we’re often caught unawares.
Research has historically been non-existent, or fairly basic, in Africa. The Pan-African Media Research Organisation (PAMRO) is addressing countries that are interested in doing research and promoting the growth of research on the African continent. This is gathering a great deal of momentum and interest, which could be put down to clients’ growth plans.
The bad
Sadly, corruption levels in Africa are quite high. Our experience is that those not prepared for these markets will sometimes make it harder for those who do want to get a foot in the playground. The best weapons to have in your armour are honesty and relationships: if you know someone you have dealt with before, you are less likely to be ripped off. The people who fall victim to corrupt practices are those not willing to build relationships with the locals.
There are also huge challenges with the currency fluctuations that affect trading. Vigilance is of paramount importance in terms of the exchange rate agreed on in negotiation and payment arrangements. The standards are low in terms of media buying, which leaves the door wide open for exploitation, again perpetuating the corruption problem.
The fallacy
It’s a fallacy that African business dealings can be handled from anywhere in the world. Nothing could be further from the truth. To understand Africa you need to be in Africa; you need to be in each specific country you are dealing with at that time. For example, there are so many cultural nuances that need to be understood which, if misinterpreted, could be detrimental to a business or marketing strategy by either party.
Media overview
We’ve noted major growth in mobile and in terms of online browsing, with Yahoo and Gmail being the predominant portals. Due to the majority of servers being unreliable and the Internet being accessed through mobile phones, these global giants are among the most reliable means from which to stream commerce.
TV is steadily taking over radio in quite a few of the African markets. Historically, radio was a cost-effective platform for consumers, but companies like Samsung and others are making imported TVs more affordable across the board.
Many South African media owners are moving into southern Africa – some of them are already firmly entrenched. We see NAB assisting on the print side; and, in the out-of-home field, Primedia Africa, Continental Outdoor, Global Outdoor, Alliance Africa and A1 Outdoor are strong players.
