SOCIAL MEDIA STRATEGY AND BRANDING: WHY AFRICA HAS AN EXPLODING MARKET FOR SOCIAL MEDIA

SOCIAL MEDIA STRATEGY AND BRANDING: WHY AFRICA HAS AN EXPLODING MARKET FOR SOCIAL MEDIA

American markets have matured. Companies have to find new sources of revenue. Those sources are the emerging markets. The existence of social media has changed the paradigm on which business run. Many people call the present business world a knowledge based environment. This is true. I think that it can better be called a content based economy. Because of social networks and their virility, if someone creates attractive content of some kind, that content can become a world class brand. Through social media, an entrepreneur can create a virtual supply chain. Social Media had done away with the limitations that geography and infrastructure have created.
The Harvard Business Review 5/11 has excellent article on Africa. If venture capitalists and entrepreneurs are looking for new markets, Africa has the demographics to create those lucrative markets. It also has people who can create strong brands---and the resources to buy them. Again, the thing that has changed the whole game is social media. Social media can connect large groups of people, and create brands very quickly.
A nation’s GDP is a measure of new and final goods and services within a country in a period of time. In Africa, the numbers are there. Africa’s collective GDP was $1.6 trillion. This is equal to Brazil and Russia; two nations who most people would feel are attractive markets to invest in. The economic growth rate for Africa is expected to be 5.2%. Africans do have money to spend. They spent $860 billion on goods and services in 2008. This is 35% more than India spent and most investors would feel that India is a good market.
In an emerging market, telecom numbers are critical. Modern telecom fosters speed of market. Using the United States as a benchmark, 90% of Americans are within 3 feet of their telephones, 24 hours a day. People read 90% of their text messages. Texting is almost equivalent to having a conversation in real time. Telecom companies in Africa have added 316 million subscribers---more than the entire US population. Africa offers a higher rate of return on investment than any emerging network.
The sweet spot for American marketers is that group between the ages 18-32, who live in metropolitan areas. The population of Africa is young, growing, and migrating to the cities. Today, 40% of Africa lives in the city. This is a higher percentage than in India. City residence is a significant demographic because there is greater access to infrastructure which is needed for social media exposure in a cities. Workers in cities earn higher pay, and can afford to buy more goods and services than just the simple necessities of food and shelter.
Africa is developing a significant middle class. In 2008, Sixteen million African household had incomes above $20,000. This level of income allowed Africans to buy cars, houses, appliances, and branded products. Another 27 million households earned $10,000-$20,000. Another 41 million households reported incomes between $5000-$!0,000 the level at which families start spending more than half their incomes on non-food items. The future promises create an expanded market. By 2020, the total number of households in all three segments will reach 128 million, which will make Africa one of the fastest growing consumer markets in the world for this decade.

Dean Hambleton
dnhambleton@gmail.com