With local Internet users passing the 5 million mark for the first time, according to research experts World Wide Worx, the case for advertising online and engaging social networks is stronger than ever. Earlier this year, data released in the Internet Access in South Africa 2010 study showed that Internet users grew by 15% from 4.6 million to 5.3 million. The study says this growth rate won't slow down this year.
While social networks offer huge opportunity for brand engagement, the proliferation of Web content and the growing sophistication of social media users are challenging marketers. Advertising on social networks offer significant reward, but benefits largely accrue to the experienced. To unlock good results online, you need to know what you are doing.
To put technology brands in the know about what's happening with online advertising and offer the low-down on how to engage social networks, ITWeb spoke to Andrea Mitchell. The founder of specialist digital marketing agency digiVOX, Mitchell has been working in digital advertising since 1997 and is a respected veteran in the field.
ITWeb: What are the biggest forces driving online marketing right now?
Mitchell: Brand custodians' interest in online marketing has peaked under the pressure of tighter budgets and the pressure to prove return on marketing and advertising investments. This, along with the rapid growth of users both via PC and mobile Internet, is drawing new advertisers into the space, as well as seeing increased budgets from more seasoned online marketers.
ITWeb: How big is the local market?
Mitchell: According to Nielsen data, the unique browser count for May 2010 was just over 10 million. It must be kept in mind, however, that a unique browser does not equal a person, but rather Web browser clients (as in pieces of software). For example, if you use a desktop PC and a laptop, you are two unique browsers. World Wide Worx pegs the actual number of Internet users at 5.3 million, a growth of 15% on the previous year. The numbers for 2010 are predicted to reach 6 million by the end of the year.
ITWeb: Which players are driving the local market - who's investing big money and pioneering the field?
Mitchell: The insurance and casino industries still lead the way in terms of online advertising spend. However, the mobile market is the one to watch, with major investments taking place across Africa into this rapidly growing market.
ITWeb: What do technology brands need to know about online marketing?
Mitchell: Set clear objectives upfront, and fish where the fish are - not in the environments that attract your competitors. Ensure your online marketing initiatives allow you to assess whether the objectives set are being achieved. Test response and return, and reinvest in what works.
ITWeb: What do technology brands need to know about search marketing?
Mitchell: Selecting the right keywords and phrases is paramount to ensuring a successful search campaign. Selecting too broad or generic phrases can result in many searches, but few clicks. As with any online marketing initiative - test, and retest, until you find what provides the best return. The beauty of search marketing is that keywords or ads can be changed within seconds.
ITWeb: What's your view on banner advertising?
Mitchell: Banner advertising provides the added benefit of building brand awareness - something that search marketing is not as efficient at doing. With the improvement of broadband penetration in South Africa, there is a greater opportunity for brands to make use of rich media, and really stand out from the rest. It must be kept in mind, however, that rich media, while great at branding, is not always the most suitable form of online marketing to deliver return on investment. It is crucial to bear in mind that the ultimate objective of any marketing initiative is to provide return. Having great creative is one thing - but don't lose sight of the fact that ultimately, you're trying to generate a sale.
ITWeb: Is online marketing something you can do in-house or is it best outsourced to an independent professional?
Mitchell: There are pros and cons either way. However, if you think that going in-house will save a few bucks, think again. In the long run, learning costs time and money. Reputable digital marketing agencies have the experience and understanding of both digital marketing and (should) have the technology to measure the return. In addition, if these agencies are buying online space on a regular basis they will have the buying power to negotiate discounted rates. If brands can treat, and communicate with, their agencies as if they were part of the same company - it's a win-win for all involved.
ITWeb: What should you look out for and know when engaging an online marketing partner?
Mitchell: Agencies should be appointed based on their ability to understand a brand's strengths, challenges and objectives; backed up by the agency's ability to tackle those challenges and deliver meaningful, measurable results. Be wary of the guy who promises return up front. Rather invest conservatively, and test the agency, before investing vast amounts that can't be redeemed if things go wrong.
ITWeb: Is e-mail marketing still an option?
Mitchell: There are various forms of e-mail marketing, from newsletter ad placements to sponsorships and promo mailers. Whichever one you choose, it's crucial to ensure the list owner can prove that each subscriber has given his/her consent to receive the e-mail. Ultimately, it is always best to own your own permission-based database, and work out a messaging matrix for various segments of your database. This way, your message will be more relevant, to a more captive audience.
ITWeb: Will digital render traditional advertising agencies obsolete?
Mitchell: While digital provides great marketing and advertising opportunities in isolation, it works best when combined with an overall marketing strategy. Each medium, or channel, has pros and cons. TV's great for mass reach.
Fish where the fish are - not in the environments that attract your competitors.
Andrea Mitchell, founder, digiVOX
Digital is great for interaction and relationship building. Every great marketing strategy needs a big idea, and I believe traditional agencies are best equipped for this. However, they need to keep in mind that digital should not be the afterthought or add-on to the big idea. If they don't have the digital expertise in-house, they should look to partner with digital agencies that can help incorporate digital into the overall marketing mix.
ITWeb: Will content replace advertising as we know it?
Mitchell: PR has been around for as long as we can remember, and it certainly hasn't replaced advertising. What digital is doing, however, is merging all of these disciplines into one channel - called communication. Whether it's advertising, PR, brand activation or digital - ultimately, it's all communication.
ITWeb: What do marketers need to know about content and the evolution of content?
Mitchell: Brands no longer own content. Social media has given everyone a voice. Whether you like it or not, people are talking about you and your brand. Ensure you know what's being said, and where.
ITWeb: What are your favourite gadgets?
Mitchell: My BlackBerry Bold (despite the poor battery life) ensures I can still manage work relatively freely wherever I am. Although not really considered gadgets, I couldn't cope without remote controls! If, however, someone could invent a gadget that delivers coffee to me on demand, my favourite list would alter somewhat!
ITWeb: What's the best advice anyone ever gave you?
Mitchell: "Don't think, just do it!"
ITWeb: What's the one thing you can't live without?
Mitchell: Enough sleep, my sons, and my BlackBerry!
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