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Digital marketing:

Turning the law of supply and demand upside down

(August 2010)
Total online users: 1,966,514,816
European users: 475 million
USA users: 266 million
Africa: 110 million
South Africa: 5.6 million

We all understand the law of supply and demand – if it’s rare it must be good, if it’s good it must be expensive! Therefore, how can you take a marketing medium like the Internet seriously when it only costs R300 per month?

Well, try to think of any traditional print or electronic medium that has a circulation of 2 billion international A & B-income readers!

The Internet has turned the law of supply and demand upside down. As a rare commodity in the early 90’s it was worthless; now that it’s ubiquitous, it’s exponentially more valuable and getting cheaper all the time.

Around 1998, 300 million consumers went online for the first time. Why, when they already had a surfeit of TVs, radios, newspapers, magazines, telephones and other media? Traditional media have one fundamental limitation - the same show or edition is distributed to everyone – they are generic media for the masses, and time specific.

There are said to be around 20 000 printed magazines, and 5 000 daily newspapers in the world, but there are already more than 60 million web sites. On the Internet the spoilt consumer can find substantially more about any specific interest, product or service, at no cost and at his convenience. (I say “his”, but current viewership between men and women is almost even)

But all those readers are no commercial use if you can’t attract and retain their attention. Analysing what makes the Internet popular can guide you towards an effective internet marketing strategy:

Be specific and relevant

Space is unlimited, but viewers’ attention spans are not. Use text and images that persuade – keep the focus on your marketing message, not the technology. Provide concise, interesting, useful content structured so that he finds what he wants quickly, and takes that action step.

Be newsworthy

Include company, industry or community news. Watch for out-dated items – like wishing readers Merry Christmas in February.

Be interactive

Any good sales person will tell you – talk less, listen more. Procter & Gamble invites consumers to participate in product development. Levi's and M&M's drive people to their web sites to vote in polls. Pepsi and Disney have created communities of young people with similar interests and linked their brands to that “communication hub”. The Internet is the only medium where there is 2-way communication – take advantage of that with forums and discussion groups.

Be user-friendly

The viewer came to your site because he is looking for something – try to identify and provide that “something”. Talk one-on-one, persuade him with both logic and emotion. Don’t lecture him, don’t be arrogant, and don’t bore him. Your competitors are just one click away.

Speed is critical. Superfluous sounds, photos and videos, animated icons and “creative” navigation cause irritation and prevent prospects from finding what they want. Be consistent about page style, colour, typeface and navigation – it guides viewers. Save your creativity for innovative and interesting content.

Be practical

Effective web sites are structured with an understanding of how customers like to find information and how they buy. The Internet provides statistical information that traditional media can only dream about: visit length, page views, country of origin and page sequence. Review the trends and keep refreshing your web site around what works.

Be accessible

Think about all the prospects that may not be actively looking for you but might buy from you if they just knew you existed!

  • Get a good URL (domain name). If you are known by several trade names or acronyms, register and link them all to your web site.
  • Register with South African and relevant international search engines, “link exchanges” or hubs. Use metatags creatively.
  • Some search engines allow you to “sponsor” specific search words - your banner ad will appear on the top of the appropriate “search result” page.
  • Publish your web address on your stationery and advertisements.
  • Place banner ads or reciprocal links with web sites that sell non-competitive products to your target market.
  • Use Chat Rooms and Newsgroups to announce relevant new products: Chat Rooms offer “live” conversations (2nd in popularity after browsing), Newsgroups are “clubs” for special interest groups.
  • Keep visitors involved with relevant email updates. Include short snippets about industry or product news in the email, with a link to your web site for more information.
  • Convert your web site to CD so that customers can browse up-to-date “product sheets” while offline.
  • Display your web site on a touch-screen monitor in your reception area. It’s much more exciting than reading a 3-month-old company magazine.

The Internet offers the marketing industry a new channel to attract, persuade, retain and service customers. The benefits are low capital and maintenance costs, flexibility, global coverage, targeted readership, measurable reach and perhaps most importantly, complete control over how your message is communicated.

With all this, one can’t help but wonder why the digital media are still lagging behind the traditional media in South Africa? South African advertising agencies certainly do not lack creativity or a spirit of adventure when it comes to new ideas. Perhaps if it cost more it would warrant the time and effort of a serious marketing strategy?

South African Statistics

For the sake of simplicity the latest Nielsen Online demographic statistics for South African websites are provided in table form.

South African Internet Demographics
Where do you normally reside?
Johannesburg 29%
Cape Town 17%
Pretoria 14%
Durban 6.6%
Other Gauteng 5.5%
Other Western Cape 4.8%
Gender
Male 55%
Female 45%
Population Group
White 63%
Black 25%
Coloured 7%
Indian 5%
Marital status
Married 58%
Single 32%
Divorced 7%
The total monthly personal income for all household members combined, before tax?
Up to R3000 7.6%
From R3000 - 8999 9.6%
From R9000 - R15999 13.4%
From R16000 - R19999 6.9%
From R20000 - R24999 8.1%
From R25000 - R29999 7.0%
From R30000 - R39999 9.2%
From R40000 - R49999 7.3%
From R50000+ 14.4%
Prefer not to say 16.3%
Age Group
Under 15 0.2%
16 - 19 1.7%
20 - 24 11%
25 - 34 31%
35 - 44 25%
45 - 49 9.5%
50 - 54 7.8%
55 - 64 9.9%
65+ 3.9%
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