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Why digital disruption is key to Africa's ad space

By , Portals editor
South Africa , 10 Jun 2015

Why digital disruption is key to Africa's ad space

Digital and interactive communication has evolved to become a key category at the annual Loeries Awards, with music videos now also being used to add another level to the event - an established institution recognising talent within Africa's advertising and brand communication industry.

In 2015 the week-long media and advertising awards takes place in Durban at the ICC from 10 – 16 August.

As recently as 2012, Gartner stated: Despite identifying customer engagement as ripe for innovation, CIOs rank social media low on their technology priorities...

Now, only three years later, "CIOs see these technologies as disrupting business fundamentally over the next 10 years. When asked which digital technologies would be most disruptive, 70 percent of CIOs cited mobile technologies, followed by big data/analytics at 55 percent, social media at 54 percent and public cloud at 51 percent."

From a Loeries point of view digital and interactive communication has inspired dialogue with brands, rather than uni-directional broadcasting. Event organisers suggest, "It has forced a (sometimes uncomfortable) marriage between tech and marketing as the medium permits the unprecedented stock-piling of user information. This, in turn, means that seldom do strategies follow a pre-planned, linear roll-out."

Andrew Human, CEO of the Loeries, tells ITWeb Africa why this award category is significant, and the important role technology plays on brand building.

CHRIS TREDGER: What is your view on why digital communication has been elevated from 'gimmick' to business critical?

ANDREW HUMAN: Typically, marketers are cautious about exposing their brands to platforms that are untried, and tend to view them as untrusted. With the obvious exception of email, most digital communication channels are new, in comparison to traditional communication channels and brands initially took a wait-and-see attitude, with only the brave venturing into untested waters. Consumers have responded positively and are leading the charge, leaving marketers with little choice but to offer digital channels of communication.

CHRIS TREDGER: Would you say this is the case in most/ many/ some countries in Africa?

ANDREW HUMAN: African countries have, by and large, lagged in the uptake of digital and interactive communications when compared to developed countries. But, broadband access is increasing on the continent, and with it, a rise in the adoption of digital communication channels. On the upside, we've witnessed incredible innovation in response to the lack of broadband on the continent, providing some inspiring entrants in this category. While broadband access might be low, by contrast, the mobile footprint is huge. Here, we've seen unprecedented creativity from brands, by elevating brand awareness whilst providing real value through mobile platforms. For example, advertisers have partnered with developers to effectively turn feature phones (with a huge penetration on the continent) into smartphones (comparatively low usage) by giving African kids access to over 250 000 books on their phones. This effectively gives brands enormous reach, while providing Africa with a very necessary service, and this is the type of creative breakthrough we are witnessing in the Digital and Interactive Communications category.

CHRIS TREDGER: What are the key drivers behind this evolution in the advertising and marketing industry?

ANDREW HUMAN: Digital technology has fundamentally changed the way brands interact with consumers. Today, consumers have the power to choose their preferred media, and brands that don't listen to consumer demands suffer diminishing loyalty and traction with target audiences. As recently as five years ago, brand communication was predominantly a one-to-many broadcast. Digital channels have given a very powerful voice to consumers and brands have to be both innovative and interactive and have to engage in dialogue versus old school broadcasting. The key driver, without question, has been the consumer vote.

CHRIS TREDGER: As a seasoned professional within this space, what is your take on the increasing significance of digital platforms/ channels within the corporate communication arena?

ANDREW HUMAN: Marketers are prioritising customer experience. Nowhere is this more manageable and measurable than via digital channels. Consumers expect a highly interactive and immersive experience, and demand a voice. When campaigns are correctly designed and implemented, brands can offer consumers targeted and responsive experiences. This makes digital a highly significant channel, and one set to grow.

CHRIS TREDGER: Some consumers may feel that digital technology has taken the gloss off advertising, that it's removed some of the 'feel good' aspects - do you agree?

ANDREW HUMAN: Digital media provides advertisers a platform through which to amplify traditional campaigns. If anything, digital gives advertising another dimension and opportunity for "gloss". When done correctly it should allow for growth and deeper interaction, it's where storylines can develop along fluid lines in response to consumer feedback. It's important to recognise that digital has not superseded traditional advertising, but has provided an extension to its existing reach.

CHRIS TREDGER: Do you feel the local market has fully embraced digital - bringing this into services and offerings, or is there some way to go still before the industry completely accepts and taps into digital technology to meet market requirements?

ANDREW HUMAN: The MEA region has submitted entries of extraordinary quality this year, and they have almost doubled in number. Based on these entries, however, it is clear that within the MEA region, certain pockets stand out. For example, South African entries, in terms of concept and execution, outshine contributions from some of its neighbours. On the whole, however, MEA is on par with world standards when it comes to creativity and innovation. At this stage, I feel that we are having to trim our offerings to meet with the lagging infrastructure. As the price, quality, and reliability of broadband improves, digital and interactive communication will be ready to take full advantage.

CHRIS TREDGER: How is digital communication/ interactive communication brought into services - is it part of a larger service offering, is it a value-add, or a campaign in its own right - what are clients looking for and what are their requirements?

ANDREW HUMAN: investing in the customer experience. This was in order to drive business advantage and profitable revenue growth. Digital plays a huge role in this, and it is imperative that a digital campaign interacts directly with existing customer relationship management systems. Digital has matured to a point where it can stand as a campaign in its own right, with some brands utilising digital as their sole form of communication, whilst others use it as a strategic add-on to more traditional campaigns. Each medium must be evaluated on its own merits, and required objectives identified to form the basis of the strategy. All services need to reflect the ethos being promoted by the campaign – and this is not limited to digital campaigns – any form of marketing outreach, including traditional advertising, must be mirrored by the brand's service offering.

CHRIS TREDGER: Some people believe online advertising, as an example, doesn't really work anymore - what do industry experts say about this medium and advertising in terms of strategy the 'dos and don'ts'?

ANDREW HUMAN: The numbers prove otherwise. Marketers now more than ever are under increasing pressure to prove return on investment to business. Between 2011 and 2013, online advertising spend increased by 36% in the US. It is estimated that we'll witness 13.7% compound annual growth until at least 2016, effectively doubling 2011's spend in the US (a predicted figure of 67.4 billion dollars). The beauty of online advertising is that feedback is immediate. This allows for campaigns to be trimmed, altered and adjusted to speak directly to our preferred target audience. Unlike traditional advertising, if you miss your mark, that's it. Digital campaigns are dynamic, giving advertisers the greatest chance of success. It is because this medium is so highly measurable that chief marketing officers see value in increasing spend in this arena.

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