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Online Classified Market In Pakistan

Pakistan has traditionally always been a nation with strong social support systems rather than institutions. Even for things as simple as schooling or buying a house, we seek after the opinions and recommendations of our own and extended family and friend networks rather than depending on external reviews or peers.

Over the last few years however this system has seen a gradual shift especially in the upper income segments. As technology has permeated into our lifestyle, the increased exposure and information flows has resulted in making judgements based more on the recommendations of strangers and experts than just existing peers. The increase in more and more people shifting to nuclear families as well just amplifies this trend further. To cater to this sophisticated audience, a growing plethora of classified advertisements sites are springing up in the anticipation of this growing market of the future.

Globally a $100 billion business, Classified sites are the new form of how consumers and businesses or more appropriately sellers and buyers find each other. Whether individuals or businesses are looking for a used car (pakwheels.com), a new employee (rozee.pk), a place to sell their mobile (hafeezcentre.pk) buy a plot for investment or their new home (zameen.com), or even find a partner (shaadi.com), the first stop is increasingly becoming the Internet to sites such as these and more. The appeal lies in the convenience and ease of use such sites provide with powerful search capabilities, more personalized “push” services such as automatic ad alerts, more timely and up-to-date listings and features such as photos, video, and sound clips in online ads. Best of all they are FREE!

In some aspects, the evolution of the online classifieds in Pakistan is unique from its global counter-parts. Pakistan has seen the rise of vertical sites i.e. specializing in one area such as jobs, real estate and matrimonial first unlike say US where the first and still biggest classifieds site is Craigslist, a horizontal site specializing in many categories simultaneously. Secondly, unlike the west, where online classifieds have taken business away from newspapers, online classifieds in Pakistan have grown the overall market. During this time even the print classifieds have grown substantially. This is comparable to our telecom markets where the fixed lines though have been growing gradually, whilst the mobile market has shot through the roof improving tele-density significantly. The future however is mobile and similarly, the online classifieds industry will ultimately cross the print classifieds through the sheer reach, flexibility, cost effectiveness and ease of use for both advertisers and searchers.

Classified sites are the ideal web 2.0 business for a country like Pakistan for unlike Ecommerce models based businesses such as EBay or Amazon where the transactions are completed online, users never buy directly from these classified sites thus our limited infrastructure and payment gateways do not restrict the growth of these online business. Instead, users to these sites use the service to look for best offers and get in touch, while transactions are conducted in person or by phone. The sites benefit from advertising revenue and some paid listings for ‘Featured’ ads. Whilst numbers of the size of the market and revenues are harder to come by, leading the traffic race is OLX with 2.2 million unique users every month in Pakistan. Local sites such as Pakwheels, which deal mainly with second hand cars, claim 15 Million Page views in a month and 150,000 registered users. Zameen.com claims over 180,000 unique monthly visitors and 10,000 site listings a month.
“The market is interesting because of the potential – Pakistan is a huge market in terms of sheer numbers There are roughly 20M Internet users in Pakistan today, and we believe that this number will grow substantially over the next decade. So there’s definitely a big potential in the Pakistani Internet market. We believe that a free, quality classified site like dekho.com.pk is a service that most of the Internet users in Pakistan will want to use”, said Nils Hammar, CEO at dekho.com.pk, one of the pioneers of classified sites in Pakistan.

The launch of Dekho.com.pk since November last year is interesting because this is a horizontal site, much like OLX or Locanto in Pakistan and amongst a growing number of foreign horizontal sites investing in the future of this country and this market. Even with local players, also the market is shifting from vertical category sites to horizontal category sites. Even the players who were earlier in one category have launched other verticals or their own horizontal sites e.g. Pakwheels have launched naitazi.com and tringtring.com, verticals for general goods and mobile phones in Pakistan.

The trends and the factors governing classified ads markets support their assumptions. There is a substantially large numbers of micro and small entrepreneurs who are increasingly looking at advertising options that are free or low cost to market their businesses, services or products online. Online classifieds provide them with a local as well as a national reach and like we mentioned it’s free. A site like dekho.com.pk already claims 50,000 listings in a span of few months.

Classifieds online is definitely evolving but it needs a critical mass. Pakistan’s online industry is in the nascent stages. The overall internet population in Pakistan is limited. Even though it is said to be around 20 million, a person accessing Internet at least weekly is not more than 5-8 million (estimated). Out of this, people looking for search based information would be 2-3 million. This is not a critical mass when compared to US or other developed markets. Secondly, there is a problem of information hoarding e.g. the real estate brokers thrive on their knowledge of whose buying and whose selling and would not part from this information easily. However even with these challenges, the number of classified listings and the audiences would increase substantially in the next 3-5 years because of two things:

1. Pakistan is an emerging market growth with both GDP per capita and online media consumption growing at a good pace. The increasing salaries, more disposable income (many times due to both partners working), increased choice of goods has ensured that users are changing their laptops, PCs and cars faster than before. 50% of mobile especially gets changed within 6 months of purchase. These trends are resulting in a spurt in online listings. People are selling everything – right from washing machines to laptops and even air conditioners. Currently the household in Pakistan which wants to sell items doesn’t have any option offline except the people they know. Hence, online classifieds sites are providing these solutions.

2. Sellers are not online, while buyers are all over the Internet. How many apartment landlords are willing to put up their rental ads on a website? Infact how many landlords are Internet savvy in the first place? However as awareness about online classifieds increase, this will change and more people will join in the marketplace. Online classifieds currently stand to become the trade portals of all C2C transactions in Pakistan and fill in the huge gap between buyer knowledge and sellers disadvantage.

The future for these markets look bright. Internet penetration in Pakistan has been constrained because of broadband and PC penetration where as Mobile penetration has been explosive. People are beginning to realize the ease of access of Internet through their mobiles and in many cases they are having their first exposure to internet through a mobile handset. Online classifieds on Mobile are gradually gaining traction and with the rapidly growing mobile internet users, it could become the largest chunk soon.

“A great mobile service is a must as the Internet usage goes mainstream. We have a mobile site today on dekho.com.pk/m that is being used by all kind of mobile devices. As the market grows we will add more options for mobile users. The future looks promising. We have a lot of belief in Pakistan and the Pakistani Internet market and we want to be a part of the progress as the market grows. So far, the response we’ve had from our users has been great, so I really believe dekho.com.pk will bring value to the Pakistani market”, said Hammar.

One thing is for sure, no matter how the classifieds market will look like in the future, more Internet users mean better services being developed, and better services in turn attract more Internet users. Hopefully we’re in the beginning of this positive spiral where it’s hard to imagine 5 years from now a better way to sell our cars, buy our houses or even find our partners for life.

Original Post: http://auroramag.wordpress.com/2012/06/19/classified-and-online/

From The Archives (2008) – Marketing 2.0

Marketing 2.0
Published Dawn, Aurora, Jul 2008

by Umair Mohsin

What is the future of advertising? Simply there isn’t any. At least not as we know it. Trever Edwards, the vice president of Nike in October, 2007, sounded the death knell for the traditional ways of how we advertise, when he said “We’re not in the business of keeping the media companies alive, we’re in the business of connecting with consumers”.

Worldwide, the trends are the same. In the US, the country’s third-largest advertiser (General Motors) is getting ready to shift fully half of its $3 billion budget into digital and one-to-one marketing within the next 3 years. P&G Canada, has vowed to boost online spending from 3% of its media budget to as much as 20% for the company’s fiscal year that starts July 1. How soon before P&G Pakistan will follow suit? Research shows that 65% of all marketing spend in Asia in 2007 had no effect on the consumer. Yet still 70% of all Asian marketers are not tracking the effectiveness of their spending, many simply because they don’t know how to.

Yet as more and more consumers integrate digital technology into their daily lives, they are also increasingly exercising control of how they view, interact with and filter advertising in a multichannel world.  Already the integration of technology (multi-screen media consumption) is changing how we look at consumers. No longer are marketers describing consumption of content as being off-line and online or traditional and new but where and how the media is being consumed. The demarcation lines between old and new media have officially been eliminated. TV is increasingly being described as “lean back” interaction, as users are typically relaxing in the living room environment with a remote control in one hand. This is in contrast to the similarly slick marketing devised descriptor of the more active, personal computer-oriented “lean forward” experience of a keyboard, mouse and monitor especially used with gaming & consoles. The third form of media consumption is ‘On-The-Go’ with services such as Mobile TV provided by Telenor, digital outdoor & POS (such as 3M Vikuiti in Pakistan) or gaming gadgets like Sony PSP leading the way. It doesn’t end here however. Technology does not change any form of content or its inherent linearity but it is shifting how we control the viewing of that content. DVRs are allowing users to time shift content. iTV such as PTCL Smart already allows on-demand media and interaction directly. Thus even in Pakistan, we have the hyper-fragmentation of the audience and more and more advertising will now have to become integrated across multiple platforms of the ‘Digital Lifestyle’ if it is to work. This is the underpinning of the rise of Marketing 2.0.

Simply put if the web 2.0 is the network as a platform, spanning across all connected devices like PCs, mobiles, gaming consoles, etc, than Marketing 2.0 is about those platforms that make the most of the intrinsic advantages of these platforms. This is very different from the old school forms of marketing, especially since the old schools were not of an interactive nature.

The oldest marketing model was Transactional (communicate what it is and what it does) in its nature. The value was created by what the company was offering and consumers were passive buyers waiting to be targeted with offers. The role of the marketer was ‘to define & create value for firms’, whilst interaction with customers then meant researches or surveys of consumer’s habits.

In the second chapter of marketing, we were bombarded with the ‘Relationship marketing’ model whereby ‘maximizing the lifetime value of the consumer’ was the end goal of marketing. Firms focused to attract, develop and retain the most profitable consumer segments over the maximum number of years.

The new marketing 2.0 model is very different. With the rise of technology and gadgets, consumers have now became Pro-sumers, active participants in the marketing’s value creation. The 2.0 version is about creating ‘Tribes’ or Identification (Who you are) through experiences. This has been brought about through a confluence of a number of trends like participation (from consumer to creator), personalization & collaboration (from pushing content to pulling content), democratization of market access (from a few big advertisers to a lot of little ones) and richer online apps (from desktop apps to the internet cloud & rich media). The role of marketing 2.0 is ‘to engage customers in defining and co-creating value’ through Active Dialogue. Value is ‘maximizing the co-created experiences’.

What it means for marketers is that consumers are no longer at the end of the marketing process. They now refuse to just consume what the marketers throw at them and want to be an inherently part of the marketing process – being part of the conversation. Infact many consumers are becoming vendors themselves of products and even of media in some cases – the role of the traditional agency. Even in Pakistan, opinion formers are popping up in the most unexpected of places with blogs especially becoming very powerful in shaping consumer responses (google ‘PTCL Broadband’ or ‘Link Dot Net Problems’ for an idea). Borders between advertising and PR is blurring.

New marketing buzzwords like Engagement & Excitement are already following on the heels of this revolution, becoming the new mantra, whilst traditional metrics such as Reach & Frequency can no longer cater to measuring the quality of engagement and excitement that is now needed for marketing to these attention deficient consumers. With the beginning of the end of mass media, Advertisers already are starting to demand more individual-specific and involvement based measurements, putting increasing pressure on the traditional mass-market model. Already in Pakistan, the Marcom Mix is shifting from Exposure To Engagement through new formats such as branded entertainment featuring reality based shows (Princess of Pantene, Lux Style Awards, etc), branded adver-games (GilletteChampions.com), branded portals (Tapal’s chillkaro.com), branded talk shows (Nido Taare Humaray), branded game shows, On-ground activations and more. In light of this trend, I predict that the majority of advertising revenue will shift from impression-based formats to impact-based formats within the next five years.

With hyper-fragmentation, the PPC (Price Per Contact) Cost is also rising over time, so more and more marketers are demanding optimized media and sales based results. Expect the 2.0 terms like ROI, Cost Per Lead, Cost Per Conversion, Sales Funnel Consideration and Stickiness to enter our marketers jargon soon.

One of the keys to successful marketing in the 2.0 age is hooking into the Zeitgeist e.g. in Pakistan, over the last 12 months, Facebook has been the fastest growing search term on Google, a testament to the numbers of users from Pakistan joining the ‘Social Networking’ revolution, whilst the 2nd & 3rd Top most searched terms this year have been Urdu (showing how much people would value content in their language online) & Yahoo! respectively. The 6th most searched term is ‘games’ and 8th is wall-papers. Goal.com is the 97th most popular site in Pakistan, lending credence to the revival of soccer in Pakistan. I don’t know how many marketers have noticed these insights. With the way things are going however, in the near future it’s not difficult to imagine, the marketer managing the impact of his campaign through a “dashboard” that delivers real-time metrics and analysis across all of their advertising platforms. Gone are the days of “hoping” advertising works. Marketing 2.0 is and will be a world where the marketer has full control of the effectiveness of their marketing spends.

The next 5 years will hold more change for the advertising industry than the previous 50 did. Increasingly empowered consumers, more self-reliant advertisers and ever-evolving technologies will redefine how advertising is sold, created, consumed and tracked. There is no question that the future of advertising & marketing will look radically different from its past. As advertising budgets shift to new formats and shape the future advertising market, control of marketing revenues and power will hinge on four key market drivers: attention, creativity, measures and advertising inventories. Whether agencies in Pakistan will be able to cope, I do not know.

Traditional advertising players – broadcasters, distributors and advertising agencies – will get squeezed unless they can successfully implement consumer, business model and business design innovation to incorporate these new realities of life – the trends toward creative populism, personalized measurements, interactivity, open inventory platforms and greater consumer control. This means that many of the skills and capabilities that were the mainstay of success in the past will need refinement, transformation or even outright replacement.

The printing press did for communication what the Internet is doing for marketing. Both changed the medium of mass communication and both revolutionized the way things get done. Digital technology is slowly but surely reaching critical mass in Pakistan and already we are beginning to see a merging of the “old” and the “new” ways. The push for control of attention, creativity, measurements and inventory will reshape the advertising value chain and shift the balance of power. For both incumbents and new players, it is imperative to plan for multiple consumer futures, craft agile strategies and build new capabilities before advertising as we know it disappears. Here’s some food for thought for those who still want to cling to the old ways of advertising. Our kids are already growing up with the ability to watch pretty much what they want when they want. As they get older, do you think they’re going to accept anything less than that?

Get Ready For Social Shopping

People have long shared product opinions with friends and family through word-of-mouth. Today’s social media tools enable consumers to share and extend their connections and opinions in powerful new ways even further, enough to build in a whole new layer in the sales funnel for marketers. Yet e-marketers have barely tapped that potential to leverage the opinion of consumers to drive sales on social networks.

Traditional Sales Funnel

Modern Sales Funnel

Forward-thinking retailers are changing that very quickly. Most are bringing their Web stores to the environments where their customers like to spend time. As a result, almost three-quarters of the merchants in the Internet Retailer Top 500 Guide have a presence on at least one of the major social networks or social shopping sites.

Social network users are also a highly coveted group of consumers. Across all age brackets, they are more likely than average to make an online purchase, according to a May 2009 survey by Anderson Analytics. What’s more, social network users are also more likely to share recommendations with greater frequency than generally expected. A Q1 2009 Razorfish survey of social network users found that some 29% reported sharing their views online at least every few weeks, while 10% said they made such contributions at least every few days.

Etailers have already seen amazing results through social media tools like Twitter which is now becoming the defunct channel of Customer Service and a Promotion Vehicle of ‘Deal of the Day’. They’ve seen proven benefits through the ratings and reviews systems, which are already the mainstay of every e-tail store. It is now how etailers tap into this shift from a transactional experience to a social one which will determine the winners of tomorrow.

Enterprise 2.0 – Fostering Innovation

Enterprise Social Computing is the next generation of online collaborative technologies and practices that people use within the enterprise to share knowledge, expertise, experiences and insight with each other. (Definition: IT @ Intel)

Over the last few years, as open APIs, social networking platforms, cloud computing, open identity services, sensor-driven databases (such as with GPS and OpenStreetMap), or even people (example: Amazon’s Mechanical Turk) have created open ecosystems in which anyone can participate, including business, both to contribute and to consume, the Web has become the ultimate ‘people platform’ and one that is incredibly agile too, combined with economies of scale that are very hard to match. However it has thrown up its own challenges, unpredictabilities and risks which must be dealt with both routinely and successfully.

To perform well in this changing business environment organizations have adopted a more positive mindset towards Enterprise 2.0 technologies, since many enable the empowerment of the employees, making the organization nimbler and more innovative in a very challenging world. These also serve to protect the heart and soul of the enterprise- it’s knowledge.

Some of the reasons why Enterprise 2.0 is taking off are:

Protection of Intellectual Property

Employees in all enterprises are already using open ‘insecure’ social media tools. Knowledge workers use these tools for many reasons including how they fit their lifestyles, are universally accessible, easy to use and most of all are highly empowering. However for enterprises, these lead to increased concerns about ‘intellectual property’ and other information assets. This is because many of these sites have policies that effectively require users to give up their right to privacy. Also some of the sites can lay claim ownership of all content posted on the site in perpetuity (IP nightmare), including the right to share the information with third parties meaning if employees use an external blogging or microblogging site to communicate, their posts may be read by anyone, anywhere and the sites can also lay claim to the information shared which may be confidential in nature.

Thus there is a need to define balanced security measures and controls, update use policies and ensure all employees know how to use these technologies appropriately. Additionally, if enterprises do not take up such initiatives e.g. Intel IT which provided its own social computing platform, the use of fragmented internal tools and insecure external tools will continue to grow.

Beyond IP security however enterprises have learnt that there are other reasons to give employees access to Enterprise 2.0 tools.

Spur Innovation

Rick Hutley, VP Internet Business Solutions at Cisco said “There’s a huge opportunity to leverage skills and expertise you already have in your company, but the problem is finding it”. The great promise of Enterprise 2.0 is to uncover and tap into the hidden talent of an organization. Social computing if done right can address many challenges, such as helping employees to find relevant information and expertise morequickly, increasing interactive collaboration across the enterprise, breaking down silos, spurring radical innovation and capturing the tacit knowledge of existing employees.

Amongst other things, social computing enables:

– Improvement of sharing, discovery and aggregation of information

– Finding experts fast

– Expanding network & enhance career development

– Aiding real-time collaboration

– Sharing innovative ideas

– Building communities

Attract, Develop & Retain Gen-Y As Employees

Enterprises have also realized that the ‘google generation’ comes with a different mind-set than that pervaded during the time of baby boomers and such Enterprise 2.0 tools can help attract and retain employees. It’s a known fact that in traditional organizations employees may work closely with people worldwide, but in many cases wouldn’t recognize team members if they passed them in the hall.

From closed command and control structures which garnered fear of making mistakes to this new world we are now transitioning to a work-place which is more consensus driven,

informal and requires more mentoring and exploration of options. The new workers are more accustomed to working across divisions than the previous generation which was stuck in its silos leading to massive behavioral shifts in the work-place. Thus it is via using tools such as these which can help engage the Gen Y worker, connect employees together, thereby making an enterprise even as massive as Intel feel “small” and help tackle feelings of isolation. These tools can also help mitigate the impact of a maturing workforce, help employees work more effectively over time & distance and improve speeds of finding relevant information & people.

Implementation Of Enterprise 2.0

One of the approaches towards the implementation of such can be read at IT@Intel’s, which has Intel’s own Case Study on ‘Developing An Enterprise Social Computing Strategy’. However, for those who just want to experiment with these technologies, they can set on the 2.0 path with something as simple as an internal company wide blog which can be used for a variety of purposes.

In the Future

Social computing’s new collaborative technologies will provide effective channels for communication, collaboration, teamwork, networking, and innovation and in the post internet world, this is increasingly how companies will unleash innovation within their processes and secure the best and the brightest talent.

Enterprise Social Computing is the next generation of online collaborative technologies and
practices that people use within the enterprise to share knowledge,
expertise, experiences and insight with each other. (Definition: IT @ Intel) In my previous post we took a look at why enterprises adopted a positive mindset towards Enterprise 2.0 technologies.
These enterprises are facing massive pressure to adopt these new technologies because of many reasons.
The primary reason is the protection of intellecutual property. Employees in all enterprises are already using open ‘insecure’ social media tools. Knowledge workers use these tools for many reasons including how they fit their lifestyles, are universally accessible, easy to use and most of all are highly empowering. However for enterprises, these lead to increased concerns about ‘intellectual property’ and other information assets. This is because many of these sites have privacy policies that effectively require users to give up their right to privacy. Also some of the sites can lay claim ownership of all content posted on the site in perpetuity (IP nightmare), including the right to share the information with third parties meaning if employees use an external blogging or microblogging site to communicate, their posts may be read by anyone, anywhere.
Thus there is a need to define balanced security measures and controls, update use policies and ensure all employees know how to use these technologies appropriately. Additionally, if enterprises such as the initiative taken by Intel IT will not provide a social computing platform, use of fragmented internal tools and insecure external tools will continue to grow.
Beyond IP security however there are other reasons to give employees access to Enterprise 2.0 tools. The great promise of Enterprise 2.0 is to uncover and tap into the hidden talent of an organization. Rick Hutley, VP Internet Business Solutions at Cisco said “There’s a huge opportunity to leverage skills and expertise you already have in your company, but the problem is finding it”.
Social computing if done right can address many challenges, such as helping employees to find relevant information and expertise more quickly; increasing interactive collaboration across the enterprise, breaking down silos; spurring radical innovation; and capturing the tacit knowledge of existing employees.
Amongst other things, social computing enables:
– Improvement of sharing, discovery and aggregation of information
– Finding experts fast
– Expanding network & enhance career development
– Aiding real-time collaboration
– Sharing innovative ideas
– Building community
Enterprises have also realized that the ‘google generation’ comes with a different mind-set than that pervaded during the time of baby boomers and such Enterprise 2.0 tools can help attract and retain employees. It’s a known fact that in traditional organizations employees may work closely with people worldwide, but in many cases wouldn’t recognize team members if they passed them in the hall.
From closed command and control structures which garnered fear of making mistakes to this new world which is more consensus driven, informal and require more mentoring and exploration of options. The new workers are more accustomed to working across divisions than the previous generation which was stuck in its silo leading to massive behavorial shifts. These tools help engage the Gen Y worker, connect & engage employees to make an enterprise even as massive as Intel’s own feel “small” and help tackle feelings of isolation. These also help Mitigate impact of a maturing workforce. These also help the employees work more effectively over time & distance and Improve speed of finding relevant information & people.

One of the approaches towards the implementation of such a tool can be read at http://communities.intel.com/docs/DOC-3603. However, the more traditional enterprises can set on the path with an internal company wide blog. Social computing’s new collaborative technologies will provide effective channels for communication, collaboration, teamwork, networking, and innovation and in the post internet world, this is increasingly how companies will unleash innovation within their processes and secure the best and the brightest talent in the world.

Check out the presentation below for more information on Intel’s version of social computing:
[vodpod id=Groupvideo.3570330&w=425&h=350&fv=sessid%3Dnull%26pvt%3D0%26doc%3Ditandignite-sustainabillty-liamkeating-090920080011-phpapp02%26version_no%3D1253460855%26presentationId%3D2025286%26totalSlides%3D28%26startSlide%3D1%26inContest%3D0%26preview%3Dno%26stitle%3Dit-and-ignite-sustainabillty-liam-keating%26userName%3DJagDeCat%26has_form%3Dnull%26form_after_slide_number%3Dnull%26form_is_blocking%3Dfalse%26hostedIn%3Dslideshare%26useHttp%3D1%26autoplay%3D0]

more about “Enterprise 2.0 – Social Computing II”, posted with vodpod

Consumers Trust Real Friends & Virtual Strangers The Most

A recent post at Nielsen Wire (http://blog.nielsen.com/nielsenwire/consumer/global-advertising-consumers-trust-real-friends-and-virtual-strangers-the-most/) said that

Recommendations from personal acquaintances or opinions posted by consumers online are the most trusted forms of advertising, according to the latest Nielsen Global Online Consumer Survey of over 25,000 Internet consumers from 50 countries.

According to the post:

Brand websites, globally the most trusted form of advertiser-led advertising, hold the greatest sway in China (82 percent). Following China are Pakistan (81 percent) and Vietnam (80 percent). However, brand websites tend to be trusted least amongst Swedish (40 percent) and Israeli (45 percent) Internet consumers. In the US, 62 percent of Internet consumers said they trusted brand sponsorships, placing the United States 21st out of the 50 countries surveyed.

Seems to me that companies in Pakistan should start thinking more towards digital media and brand worlds this year on… The Consumer in Pakistan is ready for the digital revolution.

Trust in Various Forms Of Advertising

Trust in Various Forms Of Advertising

Marketing 2.0 – Leveraging Facebook For Brand Building

Facing Up To Facebok

Published Dawn, Aurora Magazine, Jun-Jul, 2009 Issue.

Facebook

Facebook

Media has been leveraged for sociable purposes since the caveman first discovered walls. Thus it can be said that the phenomenon of social media and social networks is not new. Even in Pakistan, the most popular applications that were ever installed on PCs were framed around communication and sharing – bulletin boards, mIRC, instant messaging through software like MSN Messenger, AOL or ICQ, chat-rooms, etc were very popular in the last decade.

In recent times, however technology has enabled the twin modes of communication and sharing on an unprecedented scale on what are called social networking sites examples of which include MySpace, Zedge, LinkedIn, Orkut and Facebook. These are changing the human fabric of the Internet in Pakistan with over 1.83 m users on Orkut and over 500,000 users on Facebook alone.

Pakistani marketers are eager to tap into these platforms. They have realized that it’s critical for them to reach the tech-savvy youth demographic that thrives on these sites. On Facebook e.g. out of the total 574,740 (Figure: May, 2009) people from Pakistan, 436,680 are between the age of 18-30. Thus social networks do have the potential to pay off big for marketers if they learn how to use it properly.

There has been ample growth in advertising on these sites and the figures speak for themselves. Eyeblaster Pakistan, a leading internet marketing company reports Adex on Facebook in 2008 was USD 150,000 out of the total USD 1.6 million (some sources cite USD 3.0 m) spent on online advertising and increasing every year.

Facebook Apps

Facebook Apps

However if we take advertising on Facebook (the most advertised site) as a case study, it has continuously produced less than stellar results for advertisers. Facebook is a social network site that brings friends together according to interests, existing connections, networks and groups. Yet while the targeting on the site is phenomenal, Facebook users are more engaged by the content within the site rather than the advertisements. It can even be said that Facebook is a little too engaging. The metrics tell the story. With historically high CPMs (current avg. CPM on Facebook for Pakistan is $0.95) and historically low click-thru, Facebook is facing a challenge to produce effective campaigns for the marketers. The graph below highlights the problem with objectives set around CTR.

EyeBlaster Data of Various Campaigns runs on FB & Zedge

Description

Facebook.com

Zedge.net

Standard Banner – Average CTR Range

0.10 % to 0.12%

0.4% to 0.75%

Rich Banner – Average CTR Range

0.53% to 2.67%

0.95% to 4%

Average Dwell Time

0.41 Seconds

0.44 seconds

User Engagement (Brand interaction Rate)

10% – 40%

30% – 75%

Source: Eyeblaster, Pakistan

However this same graph might be viewed differently if the objectives of the campaigns were to be changed to ‘User engagement’ or ‘Brand awareness’ instead of how many leads were generated through CTR. e.g. in terms of branding efficiency, you’re getting your name, logo and ad in front of thousands of people for pennies per thousand. If such were the objectives, then the efficacy of campaign will boil down to the advertised content – what do you advertise that works and what sort of rate do you get? However even then it’s not as simple. The world average of User Dwell Time on FB is around 20 minutes a day (Figures: Jan 2009) with global 50% daily logins (both numbers for Pakistan are not available). The peak amount of time spent on the site tapers off at 190 minutes. That means that a ridiculous number of impressions are being spent on the same user and that will understandably will generate low click-through rates.

Another thing marketers need to realize about social networks like Facebook is that unlike say Google, users on Facebook don’t want to leave the site. With Google the goal is to redirect the user to another site as quickly as possible. Facebook’s goal is to hold the users attention as long as they can.

Tip: When creating ad campaigns on Facebook, consider linking it to your Facebook company page instead of an off page website.  This way the user remains within Facebook and can continue utilizing the full functionality.

Facebook advertising also will never be truly effective for the users who have even a tiny bit of knowledge about PCs. For example any display banner can simply be blocked automatically with the Firefox Browser’s adblock feature.

Facebook Pages

Facebook Pages

Thus keeping the above in mind, advertisers need to approach the Facebook medium differently. There’s a lot of focus on advertising, banner ads and the amount of traffic but to really connect to your customer it’s important to look beyond traditional forms of web adverting to see the real potential… that Facebook is a great place for relevant traffic, without the need to pay for ads! There are millions of groups associated with all kinds of subjects in the Facebook empire, so whatever niche you specialize in there is usually a collection of individuals talking about it somewhere in that world. The challenge is leveraging the connectivity of the sites and using them to form communities around products, media or services. This approach will also ensure that you are actually connected with your users.

It would be wise for marketers to take a page out of the history of MySpace, another very popular Social Network. MySpace when launched was effectively ignored by the press and digerati. They gained traction with the musicians who were just starting to get that social network sites were valuable. Based in Los Angeles, they had an upper hand. They managed to attract club promoters and others catering to 20-something urban hipsters who were looking for a tool for coolhunting. Slowly, a symbiotic relationship emerged on MySpace as bands and fans became mutually dependent on one another. Against this backdrop, the youth phenomena emerged.

What companies can learn from this case is that social networks have the power beyond ad revenue to act as a customer relationship management (CRM) tool for them. As in much of media, creativity is the key here. If you can find the type of ad that Facebook users will click, that’s one thing, but if you can build something they’ll click, engage with (or buy) and help you spread, you’ve got something far more exciting

FB Users

FB Users

and effective. One campaign that used this technique very successfully was the Burger King “Whopper Sacrifice” application, which recently also earned a Grand CLIO in Interactive. BK developed a Facebook app that once installed promised to give the user a coupon for a free hamburger if they were to delete 10 people from their friend’s list to prove how they preferred the Whopper over their friends. The “sacrifices” showed up in the activity feed. So it said, for example, “Caroline sacrificed Josh for a free Whopper.” Facebook ended up disabling the WHOPPER Sacrifice, after the love of the user for the WHOPPER Sandwich proved to be stronger than 233,906 friendships.

All things said it also has to be remembered that not all products can be successfully marketed on Facebook. A new company or a brand that’s not a household name will have a tough time jumping into the mix, but so will established companies that don’t necessarily have public opinion on their side. It’s tough to get the conversation started when no one’s primed to talk about it and this is the challenge on Social Networks that brands must muster. They must remember that it’s not the marketers who are powerful on these sites, it’s the people and people empowered by technology won’t always go along.

Media isn’t neatly boxed into little rectangles called newspapers, TV or magazines anymore. People now connect to other people and draw power from crowds, especially IN crowds. If you want to be part of the Social Networks marketing process, than you have to be part of the conversations – that’s when real marketing takes place.

Net Result – Mobility Computing In Pakistan

Net Result
Published Dawn, Sci-tech, Jul 5th, 2009

Pakistan was recently host to two occurrences that herald an oncoming revolution in how we will compute and communicate with our world. One was the launch of the new line of HP MINI Netbooks (just recently announced in May at the ‘Touch the Future, Now’ conference in Beijing) which aim to bring in a new level of portability & operability to the Pakistani user. The other was the launch of the Nokia flagship Nokia N97 ‘Mobile Computer’. Both products are trying to satisfy the same need “to have something small, portable, and inexpensive (mostly) with you that is always connected” to the Internet.

HP MINI 110

HP MINI 110

Netbook PCs are miniature versions of notebooks that keep cost to a minimum. The new ones come with 10.1 inch screens, 1 GB RAM, 160 GB HD and enough power to hit a sweet spot for both consumer and business users. Their main attraction is their low price (less than PKR 30,000), followed by full QWERTY keyboards that approach (if not quite match) standard laptop arrangements, whilst their portability and ability to run most common applications mean that many people can leave a heavier notebook behind.

On the other hand, Smartphones, defined as phones which run complete operating system software and provide a standardized interface and platform, have offered mobile office applications for years including tasks such as document editing, e-mail, and web browsing. These now promise to usher in an era of mass-personalization, adjusting to the world around us, helping stay us consistently connected to the people and things that matter most.

The battle for the supremacy of being the new client-side interface to the web thus begins soon as netbooks and smartphones start replacing traditional PCs in homes and offices. Here let us the clarify what’s the fuss about towards becoming the most popular device to connect to the net – the device with the highest number of users will attract application developers from both consumer & business segments, gaming companies, advertising revenue, entertainment content, data pipes, etc. It will thus create the digital ecosystem around which we will work, live and play and massive markets & revenues for the companies which own these devices.

This however is not an easy task. The Pakistani data market is still in infancy stages. We have less than 300,000 broadband connections, whilst on the mobile side, voice still accounts for over 92% of the revenues of local mobile operators and data services are currently growing at only 2% per year. Combine this with low literacy, lack of local content development, lack of broadband awareness campaigns, QOS levels and provision of low interest loans for purchase of computers and these affect the development of mobile computing in the country adversely. Even in face of these adversities however, desk-bound PCs stand to lose their dominance as the main access point for the net –fast, since all the trends point to a mobile environment dominating our part of the world and soon.

The first trend is the push by wireless broadband companies and mobile network operators. The WiMax companies hope to provide ubiquitous coverage throughout Pakistan as close as 2011, whilst a leading company is already thinking of adding net-books plans to their existing offerings, plunging the cost of a netbook further. Mobile carriers are also actively pushing for consumers to start using data plans, driving rates to as low as Rs. 500 per month for unlimited data usage.

Secondly as compared to the current total of 5 million PCs not all which are net enabled, there are around 5 million phones in Pakistan which are EDGE/GPRS enabled and these are growing at a brisk pace as income levels across Pakistan rise, whilst cost of hardware falls. Local operators are now expecting their revenues from data to grow, as the subscriber’s appetite for mobile based content has been increasing every year. Going beyond a ring tone, wallpaper, SMS or a theme, they are now on a look out for great content and applications. One challenge which currently restricts this from taking off however is the absence of standards.


Originally uploaded by romainguy

Optimizing mobile applications for different OS and broad range of mobile devices with varying screen sizes and versions remains the biggest problem for both the mobile content developers and distributers. However, an upcoming step taken in this direction is the new Google’s Android platform that unites the players of mobile ecosystem such as wireless operators, handset manufacturers and developers all at one place. Android’s software stack will provide developers a complete access to handset capabilities and tools that will enable them to build more compelling and innovative applications for the mobile consumers. It’s noticing this trend that Nokia has made Symbian Open Source and hopes to counter Google’s influence in the manner.

Thirdly, SMEs, the over 1 million small companies in Pakistan, are starting to push the trend towards cloud and mobile computing, unlocking increases in productivity that a mobile revolution promises. These businesses desire the benefits of enterprise solutions to grow further, but simply can’t afford the custom-based solutions common to large companies because there aren’t enough users to spread the cost of developing proprietary apps. However, provide a smart-phone with a built in web-browser like ‘Opera’ to each of the employees and suddenly cost-effective mobile applications are very much possible for the sales force, field employees, in store employees, for fleet management purposes, finance, operations management and more. With the power of the full web available today and with business apps and web front-ends for ERP, CRM and other business critical systems on a mobile phone, the flexibility and the economies to propel Pakistani small businesses into the digital age are very much possible. Similarly, by deploying a VDI (virtual desktop infrastructure) technology — which runs the local machine’s desktop from a remote server – businesses can use a netbook for everything, including accessing content stored on other machines, thereby decreasing the costs of IT hardware and improving productivity no end.

HP Mini 110 - White

HP Mini 110 - White

Fourthly, we have seen the digital convergence in our country which is bringing together the separate worlds of audio, video, data and voice communication services, giving control of the entertainment and media content to the consumer. Already today (to a limited extent) we can access the services and content (e-mail, television) using different terminals over different types of networks. Thus the borders between fixed-line and wireless mobile networks are disappearing.

Looking five years out, with netbooks continuing to improve in quality with better graphics abilities, these will move towards true laptops in features whilst connected to faster data networks whilst smart phones dominating the landscape will marry the best features and capabilities of the computing and communications worlds, which will transform the user experience, bringing incredible changes to what we call our life.