3 ms·
$1.3 trillion that the continent is projected to spend in 2020. Please don't use statistics like this. The combined consumer spending of a continent (54 sepa
by tyre 10y ago
$1.3 trillion that the continent is projected to spend
in 2020.
Please don't use statistics like this. The combined consumer spending of a continent (54 separate countries, I think) is not really a fair portrayal of the opportunity. The linked source notes that $200bn is projected to be discretionary, which is closer to being relevant (as discretionary spending is largely the target of advertisers.)
The real question, which that metric may have been trying to address, is the purchasing power of the average consumer.
From 1993 to 2008 the average per capita income of sub-Saharan
African economies barely budged—it increased from $742 to $762
per year (measured in 2005 purchasing-power parity-adjusted dollars).
If we exclude South Africa and the Seychelles, we see a decline from
$608 to $556 over the period.[0]
For individual spending that small, you (an company making money from ads) either need:
a) Companies who have incredible operations to sell at scale across the continent, given the low average customer value (e.g. Coca-Cola)
b) Many companies, each tackling local markets, that you (or an underlying ad network) can reach effectively at scale
Are there examples of large corporate ad buys from (a) or an underlying network for (b) in Africa?
[0] http://www.economist.com/blogs/freeexchange/2014/01/incomes-sub-saharan-africa http://www.economist.com/blogs/freeexchange/2014/01/incomes-...
- yladiz 10y agoIt's maybe not the best statistic, but many African countries are pushing for a common currency, so it's not completely unjustified.
- bogomipz 10y agoYou are correct its 54 states counting the latest addition South Sudan which is looking like things are going to kick off there again any minute. So out of that 54, 7 are failed states. Also I think the majority of Africa operates an "informal economy" which calls into question the accuracy of those projections. I do wish them the best though. Also Kenya has become something of a startup hub the last few years. I hope it continues. It's exciting to see Africa represented in tech news.
- izacus 10y agoDidn't you lump together all countries of a huge continent as well? What's the variance of purchasing power from SAR, Morocco, Congo, etc.?
- btown 10y agoWhat is the ratio of business-targeted ad buys vs. consumer-targeted? (Worldwide or in specific countries.) For consumers it's largely discretionary, but B2B advertising could unlock more of the pie.