AITEC presentation June 2013

CHANGIN THE GAME:

Local Business. Local Media. Local Sport

AITEC BFMA Presentation June 2013

Gary Rathbone

LOCAL BUSINESS

Economic Development

Copyright Gary Rathbone 2013

LOCAL BUSINESS



LOCAL BUSINESS



LOCAL BUSINESSAn Emerging Consumer Class The continent was home to more the 1 billion consumers in 2010 and this figure

is projected to reach 1.3bn by 2030.

Consumer expenditure is also mushrooming: it was worth $600bn in 2010, representing 8% of consumer spending in the emerging markets. It will be worth as much as $1 trillion by 2020

The Rise and Rise of the African Consumer Market - African Business Magazine, March 2012

The number of middle class Africans has tripled over the past 30 years to more than 313 million, or more than 34% of the continent’s population.

The reasons for the increase in size and purchasing power of the African middle class include strong economic growth and a move towards a stable, salaried job culture and away from traditional agricultural activities.

The Middle of the Pyramid, African Development Bank Report, April, 2011Copyright Gary Rathbone 2013

LOCAL MEDIA


Updated Internet and mobile country info – Key Anglophone African territories

Country Population Urban Pop. Mobile Internet Facebook TV Households Botswana 2 100 000 61% 164% 167 200 215 000 140 000 Ethiopia 93 816 000 17% 20% 622 000 537 000 N/A Ghana 25 242 000 51% 80.5% 2 500 000 1 300 000 3 000 000 Kenya 43 013 000 22% 61.63% 10 500 000 1 400 000 4 000 000 Malawi 16 320 000 20% 30% 2 716 400 130 000 N/A Namibia 2 170 000 40% 109% 150 000 154 000 100 000 Nigeria 170 000 000 50% 63% 45 000 000 4 135 000 20 000 000 Rwanda 11 700 000 19% 55% 450 000 135 000 N/A South Africa 49 000 000 62% 127% 5 100 000 4 605 000 11 100 000 Tanzania 43 600 000 26% 62% 4 930 000 465 000 1 500 000 Sudan 36 787 000 40% 49% 4 200 000 N/A 2 400 000 Uganda 35 870 000 13% 55% 4 180 000 400 000 1 000 000 Zambia 14 310 000 36% 51% 883 000 217 500 N/A Zimbabwe 12 620 000 40% 72% 2 100 000 1 060 000 N/A

LOCAL MEDIAThe Changing Media Landscape 70% of Africans have experienced the internet for the first time on their handset: it’s the norm

Source: Global mobile statistics 2012.

Activities such as blogging and social networking are fast gaining momentum as over half of those in Kenya (55%) and Tanzania (50%) have written their own blog or forum entry, compared to only 32% in the US

Source: Digital Life, a global research project into people’s online activities and behavior.

Free to Air analogue terrestrial broadcast and satellite still dominate the African TV market, but new technologies such as online TV, programme streaming, VoD, Mobile TV, cable-fibre, MMDS and IPTV, coupled with the imminent switch to digital (DTT and DTV) means that this emerging broadcasting market will undergo great changes and increased competition in the years to come

Source: Balancing Act African Media Report 2012

A third of US sports fans use smartphones to access sports content, and of those fans, 36% access sports content via their mobile device at least once per day. Also, a quarter of US sports fans are now using social networking platforms to follow sports.

Source: Sporting News Media's third annual survey into US sports media Copyright Gary Rathbone 2013

LOCAL MEDIAAn Appetite For Local ContentContent generation with locally produced, relevant programming will take the TV industry by storm. The two-hour slot post the evening news, which is currently ruled by international soaps dubbed into local languages, shall be replaced with local programming. Nandkishor Buty, CEO of Ogilvy & Mather Africa

Nothing resonates with audiences and advertiser like sport – and nothing has the potential to grow local audience like local sport. Gary Rathbone, Head of Sport, Zuku


LOCAL SPORTReasons to be Optimistic The environment around local sport has changed dramatically in

recent years: Better facilities Better administration Better talent and talent development

The success of international sport in attracting a global audience has helped raise awareness for similar sporting codes at local level

More African sportsmen and women are achieving success at an international level. This in turn is raising awareness at a local level


LOCAL SPORTA Range of Sporting Opportunities It’s time to consider the full range of local sporting opportunities Even smaller sports with a niche fan base can have great value

to an advertiser if that base is the target for his product We need to acknowledge the complexities that exist among

sports fans in each market. It is not only about football… Bringing niche local sports into the world of local television and

media is a simpler and more cost effective way of getting sports content that can resonate with your market.

If you build it…they will come!Kevin Costner in ‘Field of Dreams’


SUMMARY


INCREASING NEED FOR MEDIA TO HAVE MORE SPORTS CONTENT

MORE MONEY AVAILABLE FOR

MEDIA SPONSORSHIP OF

LOCAL SPORT

MORE RESOURCES AVAILABLE TO

DEVELOP COVERAGE OF LOCAL SPORT

MORE COVERAGE OF LOCAL SPORT MEANS

A RISE IN LOCAL CONSUMER AWARENESS

INCREASE IN FANS, VIEWERS AMONG

LOCAL CONSUMERS.

INCREASING NEED FOR BUSINESS TO REACH GROWING CONSUMER MARKET

Documents

AITEC presentation June 2013