Insights into the Potential for Mobile Media in Africa (By Andrew McHenry and Jon Hoehler)

INSIGHTS INTO THE
POTENTIAL FOR MOBILE
MEDIA IN AFRICA

A CURATED STATISTICS, CHARTS, GRAPHS AND OBSERVATIONS
PRESENTATION BY @JONHOEHLER AND @ANDREWMCHENRY

#MOBILEINAFRICA THE POTENTIAL FOR MOBILE MEDIA IN AFRICA SLIDE 1

PRESENTATION DISCLAIMER
• This presentation is a collection of mobile media/advertising information that we have been
exposed to over the past twelve months. Some data might be duplicated but from different
periods of time.

• This presentation’s intention is to provide a collective insight into the potential of Mobile
media and mobile advertising in Africa based on information that is publicly available.

• The views, analysis and commentary in the presentation are purely the thoughts of the
presentation contributors using the information at our disposal to draw conclusions and
provide insights.

• All sources where available have been credited.

• Data provided that has no source, or the source of the data is unknown will be noted.

• Some sources may represent conflicting data so that should be taken into account when
reading through and comparing the data provided.

Above all please enjoy the presentation and the data, insights and analysis that have
been provided. Should you have any questions, queries, comments, suggestions and
criticism about the presentation please don’t hesitate to make contact.


BEFORE WE BEGIN, A BIG THANK YOU….

We would like to thank everyone who assisted in the preparation
of the data and presentation as a whole. A shout out should
always go to the actual research houses, mobile players and
sources who produced some awesome information about
Mobile Media in Africa that allowed us to create this
presentation. Without this data we would not be able to tell our
story about the amazing opportunities that exist and the
potential for Mobile Media across Africa.

A big thank you also goes out to our presentation contributors
for their invaluable contributions, thoughts and insights which
assisted us in preparing this presentation.

Andrew and Jon

PRESENTATION COLLABORATORS
JON HOEHLER Jonathan is the manager for Mobile Technologies at Deloitte Digital in South
Africa as well as an active committee member of Mobile Monday South Africa.

jhoehler@deloitte.co.za jonhoehler

+27 83 712 2534 @JonHoehler

ANDREW McHENRY With twenty years experience in the information technology industry,
spanning software, hardware and custom application development. Currently
consulting in the Social, Location and Mobile (SoLoMo) sectors covering all
OS’s, all devices, hardware, software and solutions with a focus on Africa.

andrewmchenry65@gmail.com andrewmchenry1

+27 78 613 7090 @AndrewMcHenry

"It's refreshing to find two passionate mobile
professionals in Jon & Andrew who so keenly
have their fingers on the pulse of the African
mobile telecoms trends and African Mobile
ecosystems"
James Munn
VP Sub Sahara Region
Qualcomm


HOW BIG IS MOBILE
TELECOMS IN AFRICA?


THE TRUE SIZE OF AFRICA

“According to the GSMA,
Africa is the world's
second largest mobile
market by connections
after Asia, and the fastest
growing mobile market in
the world.” – Sept 2011

SOURCE:


Mobile connections, population and penetration in
Sub-Saharan Africa since 2012 including a map of
mobile penetration in 2012

SOURCE:


The mobile ads industry will generate $136 million in Africa in
2012 – the largest share (over 40%) will come from SMS ads.

“In terms of number of users it is more difficult to quantify
because we often do not often have access to the number of
mobile phone numbers targeted in ad campaigns. We can,
however, quantify the addressable market as we forecast over
262 million SMS users in Africa end-2012 and 71 million
mobile Internet users (over handsets only), up from
respectively 218 million and 46 million in 2011,”
Thecla Mbongue
Senior analyst
Informa Telecoms & Media
http://www.itnewsafrica.com/2012/10/why-it-pays-to-advertise-on-the-move/ South Africa


THE GLOBAL VIEW
THE GLOBAL FORECASTS FOR
MOBILE MEDIA AND ADVERTISING

With over 6 billion global mobile connections, mobile
supersedes traditional media like TV, cinema and radio
as the worlds largest consumer engagement platform.
The possibilities for mobile advertising opportunities
are HUGE……….

With the next billion mobile consumers
coming from emerging markets like Africa

Global Internet Device Sales
“More mobile devices in hand allowing for more eye balls and mobile advertising opportunities”

SOURCE:


Global Smartphones vs. All other Mobile Devices
Almost 1 Billion smartphone subscriptions BUT still huge mobile advertising market potential with
other mobile devices which support mobile advertising opportunities like SMS and mobile web
banners

SOURCE:


2011 Global mobile ad spend by category

SOURCE:


Global Mobile Media Revenues
to touch $150 Billion in 2012
"Advertisers chase eyeballs so the
fact that brands spend more on in-
app advertising than the mobile
web is a clear sign that apps are
what consumers are glued to for an
increasing range of activities. In
the eyes of many advertisers, web
browsing on the smartphone is
playing second fiddle to the app
economy.“
David MacQueen
Director of Wireless Media Strategies
Strategy Analytics’

SOURCE:
Global Media Forecast 2012


Mobile Advertising Revenue by Type
Worldwide, 2008-2015 (Millions of Dollars)

SOURCE: (MARCH 2011)


Mobile Advertising Revenue by Type



Mobile Advertising Revenue by Region



Mobile Advertising Spending Worldwide
By Region and Country, 2011 - 2016
“Global mobile
ad spending to
reach $6.43
billion in 2012”
• Spending on mobile advertising in
the US will top all other regions in
the world for the first time in 2012
• Mobile, despite rapid growth,
accounts for just 1% of total ad
spending worldwide
• The mobile advertising market in
Asia-Pacific remains far bigger than
in Europe
• Mobile advertising, though just 2.3%
of total ad spending in the UK, is
expected to take a record share by
2016, reaching 11% of total ad
spending

SOURCE: (AUGUST 2012)


Opera – The State of Mobile Advertising
The amount of ad requests on Opera by Region
“North America is the
market leader”
• The United States and Canada
generate the majority of ad
requests, with 73% of the
global total.

• U.S. eCPM is also the highest
($1.98), closely followed by the
EU5 ($1.94) — and both top
the global average of $1.90.

SOURCE: (Q2 – 2012)


Opera – The State of Mobile Advertising

SOURCE: (Q2 – 2012)


Growth of mobile advertising revenues
“According to the Interactive Advertising Bureau, mobile ad
revenues have increased 92 percent in the last year, rising
from $344 million in Q2 2011 to $661 million in Q2 2012”

SOURCE: (Q2 – 2012)


Growth of mobile advertising revenues
Historically search has retained the largest share of advertising revenues, but
as the chart below shows, even though mobile's the youngest format, it had
the largest percent revenue increase between 2010 and 2012

SOURCE: (Q2 – 2012)


THE GROWTH OF
MOBILE INTERNET


Africa is a mobile first market. Mobile internet is
many African consumers only method of
connecting to the world. A key driver for mobile
media in Africa will be the mobile internet…………

Mobile is not the fourth, third or second
screen in Africa, IT’S THE FIRST SCREEN!

The Future of the internet is MOBILE

SOURCE:


Estimated total mobile internet traffic in Sub-
Saharan Africa by sub-region (2011-2016); and
assigned mobile spectrum for leading SSA countries
(MHz)


Increasing undersea cable infrastructure
“Providing connectivity for Africa”

THE
CHALLENGE
ENSURING THE
CAPACITY FROM THE
UNDERSEA CABLES
FINDS ITS WAY TO THE
AVERAGE MOBILE
INTERNET USER

SOURCE: http://manypossibilities.net/about/


Internet Penetration in Sub-Saharan Africa

SOURCE:


Smartphone penetration in Africa

The availability of low-cost smartphones has increased adoption in the continent.
Informa Telecoms & Media forecasts a penetration of 12% by end-2017.

SOURCE:


Africa, smartphone-connection penetration by
country, 2011-2017

SOURCE:


Top 10 3G subscriptions by country 2Q11 vs. 2Q12

SOURCE:


Mobile web growth around the world
Mobile web traffic is growing rapidly across Africa, increasing from 5.81% in 2010 to 14.85% in
2012. An increase of 155.59%!!!! The potential for mobile web banner advertising is HUGE!

SOURCE: (May 2012)


Global mobile data traffic forecast by region

Middle East and Africa will
experience the highest CAGR
of 104 percent, increasing 36-
fold over the forecast period

SOURCE: (2012)


Mobile data usage and forecasts for MEA

• Mobile data traffic will grow 34-fold from 2011 to 2016, a
34 FOLD GROWTH compound annual growth rate of 102%.

532 Petabytes per • Mobile data traffic will reach 532 Petabytes per month in 2016,
month in 2016 up from 16 Petabytes per month in 2011.

• Mobile data traffic will grow 2 times faster than the rest of
2 TIMES Middle Eastern and African fixed IP traffic from 2011 to 2016.

• Mobile was 5% of total IP traffic in 2011, and will be 16% of
5 PERCENT total IP traffic in 2016.

• Mobile data traffic in 2016 will be equivalent to 37x the volume
37x VOLUME of the entire the rest of Middle Eastern and African Internet in
2005.

SOURCE: (Cisco VNI Forecasts 2011-2016)


Opera Mini – State of Mobile Web in Africa
When it comes to growth in mobile web browsing, few regions in the
world can compare with Africa.
Mobile Penetration in Africa

Report Observations:
• 25 out of 53 countries (47%) have international news sites as the
most popular news source. Countries include Republic of Congo,
Sierra Leone, Egypt, Libya and Côte d’Ivoire. 18 of those 25
countries turn to the BBC as the most-used source.
• 36 countries more than doubled their Opera Mini user bases in one
year.
• The mobile web has made a comeback in Libya. In the year since the
revolution, Libya has grown the most in every category of Opera Mini
usage, including users, page views and data consumption.
• Côte d’Ivoire also showed spectacular growth. The number of Opera
Mini users rose 600% in one year. Page views grew 744%, meaning
people are browsing more pages than they did the year before. Data
use grew 760%, meaning people viewed richer, larger pages.
• Across Africa, data growth seems to outpace page-view growth. This
fact suggests that Africans are browsing larger pages and most likely,
using richer, more advanced websites.
SOURCE: ( MARCH 2012)


Based on the Top 10 site listings from Opera Mini, a word cloud of the popular sites
users are accessing on Opera Mini across Africa

Note: The word cloud is not based on unique views, rather appearance of the site in each countries top 10 listing SOURCE: (MARCH 2012)


Based on the Top 10 handset listings from Opera Mini, a word cloud of the popular
handsets users are using to access Opera Mini across Africa

Note: The word cloud is not based on unique views, rather appearance of the handset in each countries top 10 listing SOURCE: (MARCH 2012)


THE OPPORTUNITY OF
MOBILE WEB BANNER ADS


With billions of mobile display banners being
served to African mobile consumers on a
monthly basis, brands and advertisers have an
awesome opportunity to engage with consumers

And with low smartphone penetration rates across Africa,
mobile web banners work on feature phones extremely well.

The Mobile Ecosystem according to Luma Partners


The Mobile Advertising Ecosystem

SOURCE:


Mobile Web Banner Advertising
Various Mobile Ad networks operating in Africa


Inmobi, Quarter 2-2012 (Africa Overview)

SOURCE: (Q2 – 2012)



SOURCE: (Q2 – 2012)


Inmobi, Quarter 2-2012 (South Africa)

SOURCE: (Q2 – 2012)


Inmobi, Quarter 2-2012 (Nigeria)

SOURCE: (Q2 – 2012)


Inmobi, Quarter 2-2012 (Kenya)

SOURCE: (Q2 – 2012)


Buzz City, Quarter 2-2012
Buzzcity’s network records 45%
smartphone penetration worldwide at
the beginning of June.

SOURCE: (Q2 – 2012)


Buzz City, Quarter 2-2012 (South Africa Data)
Summary
Ad inventory grew by 29% in Q2.
Audience reach: 11.3 million
Top devices: Nokia, BlackBerry & Samsung.
Smartphone penetration: 36%
Average June CPC: USD 0.13 per click

SOURCE: (Q2 – 2012)


Buzz City, Quarter 2-2012 (Nigeria Data)
Summary
Top devices: Nokia, White Box Phones & Samsung

SOURCE: (Q2 – 2012)


Buzz City, Quarter 2-2012 (Kenya Data)
Summary
Top devices: Nokia, White Box Phones & Samsung

SOURCE: (Q2 – 2012)


Characteristics of an ideal Mobile Ad Network

SOURCE: (Q2 – 2012)


MOBILE MEDIA
ENGAGEMENT


The key to a great mobile advertising campaign is
great consumer engagement with the advertising
material…. Imagine drives innovation…………………

Building rich media engagements for in developed markets
don’t necessarily work in developing markets like Africa.

Mobile Media Engagement

SOURCE:



SOURCE:


Please Call Me Engagements


MOBILE MEDIA POSSIBILITIES
ON SOCIAL MEDIA PLATFORMS


“McHenry and Hoehler have become the
trusted gateway to aggregated data on the
mobile landscape in Africa. But they are more
than aggregators: they reveal how the various
data points and trends intersect and interact,
creating new knowledge and insight in the
process.”
Arthur Goldstuck
MD, World Wide Worx


Social media platforms have created a steady
stream of available consumer eye balls allowing
advertisers through the platforms to serve
contextual and filtered advertising…….

Social media in Africa is all about the mobile device. Through social
media platforms, brands can target African consumers on their
primary digital screen, the mobile device

Social Media (Facebook)
Facebook is growing across the continent. In South Africa, over 10% of the population
is registered on Facebook, with over 80% of usage via mobile devices. The potential for
targeted mobile advertising is massive…

SOURCE:


Social Media (Facebook)
7 out of the top 10 countries with the highest Facebook on mobile penetration are in
Africa. In terms of page views, Facebook is the most viewed site on Opera Mini across
the continent.

69 % OF PAGE VIEWS
FACEBOOK PAGE VIEWS IN OPERA MINI ACCOUNT FOR 69%
OF ALL PAGE VIEWS IN SOUTH AFRICA, APRIL 2011


Social Media (Twitter)
Twitter with is high frequency of content and short format lends itself to advertising
possibilities. More and more “promoted” tweets are entering the news feeds of Twitter
users.

SOURCE:


Social Media (Twitter)
Through analysis of 11.5 million geo-located Tweets and a poll of Africa’s top tweeters,
the study surveyed Twitter traffic and trends across the continent.

SOURCE: Q4 -2011


Social Media (Mxit)
Mxit is one of the success stories of the South African mobile explosion. The platform allows for targeted
advertising opportunities through splash screens and other inventory assets on the platform.

SOURCE: OCT 2012


Social Media (Mxit)

SOURCE: OCT 2012

SOURCE: OCT 2012


MOBILE MEDIA
TELCO EXAMPLE:
VODACOM SA

“I have found both Jon and Andrew’s
knowledge and understanding of the mobile
operators across Africa is first hand and
relevant having spent the better part of their
mobile careers in the continent running and
executing mobile campaigns.”
Prins Mhlanga
Managing Executive
Vodacom Mobile Media


Mobile operators across the world have access
to the biggest communities in the world.
Leveraging network assets to create mobile
advertising opportunities is a massive prospect.

In South Africa, Vodacom has lead the charge when it comes to
leveraging network assets and value added service offerings to
create an extremely successful mobile advertising offering.

Vodacom Mobile Advertising offering

Over 28 million adult South Africans own or have access to a Choose from our portfolio of world-class mobile advertising
cellphone, the majority of whom are Vodacom customers.
solutions to:
Vodacom Mobile Advertising offers a variety of products that • Maximise your traditional marketing campaigns
enable marketers to reach both prepaid (LSM 1-6 bias) and • Effectively target your campaigns by location,
postpaid (LSM 7-10 bias) subscribers. We also offer marketing demographics and other criteria
solutions that enable you to reach non-Vodacom subscribers. • Generate immediate responses
• Quickly gain intelligent market insights
With Vodacom Mobile Advertising, you can target a specific • Deliver rewards in the form of airtime, coupons, vouchers
mobile audience and engage them via SMS, video, multimedia or content directly to a customer’s cellphone
messaging or the mobile web. You can also drive sales by
delivering coupons directly to their cellphones.

SOURCE:


Fast Facts

SOURCE:


Vodacom Mobile Advertising offering SOURCE:



SOURCE:



Over 6 million of Vodacom’s
subscribers visit the
Vodafone live! mobile
portal every month.



SOURCE:


MOBILE HANDSETS
ON PLATFORMS


Connected device footprint in South Africa
Mobile devices used on various platforms


MOBILE MEDIA
THE FUTURE


Augmented Reality
Augmented reality finds its way onto a Rolling Stone Magazine cover
“Scan the cover using Layar”


“Mobile Smartphone penetration will continue to drive
Mobile Web usage in Africa more so that App usage, as
the African smartphone user has access to 3G more so
than Wi-Fi which is the primary app download
connectivity point. 2013’s key challenge will be to
improve content discoverability on the Mobile web
beyond content sites and towards relevant information
sources.”
Brett St Clair
Head of New Products and Services
Sub-Saharan Africa
Google


THE END!
THANK YOU


CONTACT DETAILS
JON HOEHLER Jonathan is the manager for Mobile Technologies at Deloitte Digital in South
Africa as well as an active committee member of Mobile Monday South Africa.

jhoehler@deloitte.co.za jonhoehler

+27 83 712 2534 @JonHoehler

ANDREW McHENRY With twenty years experience in the information technology industry,
spanning software, hardware and custom application development. Currently
consulting in the Social, Location and Mobile (SoLoMo) sectors covering all
OS’s, all devices, hardware, software and solutions with a focus on Africa.

andrewmchenry65@gmail.com andrewmchenry1

+27 78 613 7090 @AndrewMcHenry

Insights into the Potential for Mobile Media in Africa (By Andrew McHenry and Jon Hoehler)

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (20)

Destaque

Destaque (16)

Semelhante a Insights into the Potential for Mobile Media in Africa (By Andrew McHenry and Jon Hoehler)

Semelhante a Insights into the Potential for Mobile Media in Africa (By Andrew McHenry and Jon Hoehler) (20)

Último

Último (20)

Insights into the Potential for Mobile Media in Africa (By Andrew McHenry and Jon Hoehler)