Should you expand your targeting to Africa?

VP of product marketing and growth at Terragon Group, Oti Ukubeyinje, discusses marketing in Africa. Terragon Group is Africa’s leading data company. Why has a marketplace as large as Africa remained mostly untapped in this digital age? Today, Oti talks about whether you should be expanding your targeting into Africa.
About the speaker

Oti Ukubeyinje

Terragon Limited

 - Terragon Limited

Oti is the VP of product marketing and growth at Terragon Group

Show Notes

  • 02:17
    Why marketers should be targeting Africa
    Africa is an untapped marketplace with loads of new growth opportunities.
  • 03:19
    Key characteristics of marketing in Africa
    The African marketplace is very diverse and fragmented across over 50 countries. So youd need to consider the various sub categories in your strategy.
  • 05:41
    Dissecting the African marketplace
    Google divides the African marketplace into 2. But when it comes to your targeting, there are many sub categories that you can break this down further into.
  • 07:58
    The economy
    The economy in Africa is also just as diverse. So you wouldnt be able to simply replicate your prices across the different territories.
  • 10:51
    How to approach the cultural differences
    You have to consider things like the educational level, economic status, and the level of digital exposure of the people.
  • 13:45
    Businesses that thrive in the African marketplace
    Industries like transportation, entertainment, and technology do well in Africa. As a developing marketplace its not the best place for luxury services.
  • 17:18
    Businesses that struggle in Africa
    eCommerce companies struggle in Africa. This is mainly due to the fact that Africa doesnt have the infrastructure to support the eCommerce strategy used in developed markets.
  • 19:30
    The type of services that Africa needs
    As a developing market, businesses that do well in Africa are those that build the infrastructure to facilitate a digital society.

Quotes

  • "A lot of businesses have probably either maxed out what is considered new growth opportunities in the U S or in other developed markets, or the competition is very stiff." - Oti Ukubeyinje, VP of Product Marketing & Growth, Terragon Group

  • "Africa's sort of in comparison to China or India in terms of market size, but the internet penetration is for a mature market relatively low, 40%." - Benjamin Shapiro, Host, MarTech podcast

  • "It's important to recognize that it is not a homogeneous market. There's a lot of fragmentation. Differences in cultures, differences in economic situations." - Oti Ukubeyinje, VP of Product Marketing & Growth, Terragon Group

  • “In Nigeria alone, you have 6 geo-political zones. In each of these, you have over 700 languages, you have different characteristics of people.” - Oti Ukubeyinje, VP of Product Marketing & Growth, Terragon Group

  • “Apart from top ones like South Africa, Egypt, Nigeria, Australia, which have very large GDPs… majority of the countries would not be able to afford products at US rates.” - Oti Ukubeyinje, VP of Product Marketing & Growth, Terragon Group

  • “across most African markets, you will still find the cost of 1GB of data, anywhere between $1 to $2. That's probably twice what you would see in some other markets.” - Oti Ukubeyinje, VP of Product Marketing & Growth, Terragon Group

  • “...theres a perception of economic strength, but when you compare that to populations, it doesn't balance out.” - Oti Ukubeyinje, VP of Product Marketing & Growth, Terragon Group

  • “The distribution is very, very imbalanced more than 50% of the people will still be in abject poverty.” - Oti Ukubeyinje, VP of Product Marketing & Growth, Terragon Group

  • “Most people are pretty much, bottom of the pyramid, just trying to get by. Less than 20% or 30% of the population will be considered proper middle class and above.” - Oti Ukubeyinje, VP of Product Marketing & Growth, Terragon Group

  • “The consumers here are very, very aspirational because there's a general sense of tomorrow will be better than today.” - Oti Ukubeyinje, VP of Product Marketing & Growth, Terragon Group

  • “Consider educational & income levels, and access to digital channels. Access to platforms would affect how you're communicating to people across this continent.” - Oti Ukubeyinje, VP of Product Marketing & Growth, Terragon Group

  • “Ride hailing in general has taken off nicely in Africa because of the challenges with modern transportation. ” - Oti Ukubeyinje, VP of Product Marketing & Growth, Terragon Group

  • “It's been difficult to scale e-commerce properly across the continent. So most e-commerce guys who have come in have failed.” - Oti Ukubeyinje, VP of Product Marketing & Growth, Terragon Group

  • “The brands that are best suited to focus on Africa are ones that are building the foundational building blocks of a digital society...” - Benjamin Shapiro, Host, MarTech podcast

About the speaker

Oti Ukubeyinje

Terragon Limited

 - Terragon Limited

Oti is the VP of product marketing and growth at Terragon Group

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