Monthly Archive for November, 2009

Is your business ready for the mobile web?

In the month of October 2009, I had the opportunity to attend the inaugural Mobile Web Africa Conference in Johannesburg, South Africa. The two day event proved to be a real eye opener in terms of what is possible on the mobile web and how much ahead South Africa is. However, mentions of Kenya as a leading mobile web country in Africa kept coming up which got me thinking – are businesses in Kenya ready for the mobile web? From what I can tell, and to be honest, I highly doubt it. Most of the web sites in Kenya tend to be designed for the PC Web, let alone the mobile web. However, the reality is that according to a recent article in one of the daily papers, up to 45% of Kenya’s 4 million odd Internet users go online via their mobile phone.

The uptake of the mobile web in Kenya is quite extraordinary in terms of growth. In the last 6 months, I have been monitoring the trends and there are some spectacular patterns. For instance, in the August 2009 State of the Mobile Web Report (SMW) by Opera Software (who make the hugely popular Opera Mini web browser for mobile phones) it is expected that Kenya is projected to enter the top 10 global country list from its current position of 14 within the next few months. In an earlier Opera SMW report from April 2009, It was also found that Opera Mini users in Kenya have the highest number of page views per month of any country in Africa at 372 – this number has probably since increased. In the same report, Kenya’s page views growth between April 2008/9 was 572.6% and unique user growth for the same period was 146.4%

Other interesting statistics that I picked up from the Mobile Web Africa Conference came from a BBC representative. Apparently, the highest amount of traffic that the BBC receives for their mobile news and sports web sites comes from Africa. The order of ranking in this respect is Nigeria first, followed by Kenya, and then South Africa – very telling indeed! As a result, the BBC plans to launch Kiswahili versions of these mobile web sites in the very near future. In another report from the Communications Commission of Kenya (CCK) approximately 200,000 mobile internet subscribers we’re signed up between the months of March and June 2009.  Safaricom also recently announced its half year financial results whereby 18% of its Kes. 40 billion revenues came from data services including Internet, SMS and M-Pesa.

The statistics speak for themselves. The mobile web should indeed be a very big deal for businesses in Kenya. However, as it turns out, most of the top mobile web sites being accessed are the usual suspects like Google, Facebook and Twitter. The truth of the matter is that there is very little popular local content on the Kenyan mobile web with the exception of local mobile variants of the Daily Nation (mobile.nation.co.ke) and the East African Standard (www.eastandard.net/m). Some of the pioneers on the Kenyan mobile web include Kenya Airways (www.kqwap.com), Silverbird Cinemas (m.silverbird.co.ke), and CFC Stanbic Bank (www.cfcstanbicbank.mobi). There are probably a good number more but its clearly early days with very little information on how many Kenyan mobile web sites exist.

So, the big question is if you want to get in on the mobile web as a business, how exactly do you do it? Its clearly a large market opportunity but the rules are quite different from the PC Web or other media marketing channels. In most of the developing world, most users of the Internet have their first Internet experience via a mobile phone. It also ends up being the only “screen” that they will ever use to get online. However, the mobile phone is incredibly powerful from a marketing and service delivery point of view since its the one device that we always have with us, all the time. In fact, a few months ago, the mobile phone surpassed the FM radio to become the most ubiquitous electronic communications device in the world.

In a mobile web world, the biggest challenges are screen size and content. In terms of screen size, most mobile phones have small screens which requires that your mobile web site has to be optimized so as to render effectively to the end-user. This typically involves stripping down a web site to its basic essentials so that most of the content is text based and has small bandwidth efficient graphics. Also due to screen size, mobile web sites usually will have a menu or navigation that has significantly fewer options and sub-pages, compared to a PC web site. A key driver in this respect is giving your users only content that would be relevant to a  mobile web user. Its highly unlikely that a visitor to your web site will have the patience to pore over voluminous content in their mobile phone like they would do on the PC web.

The following are the some steps you can follow in developing a mobile web site that will generate business and improve service delivery to your current and prospective customers:

  • Have a mobile web strategy, first – there is no point in building a business mobile web site just for the sake of having one. The most important reason should be that you have a mobile web strategy that will result in business benefits, and a compelling value proposition for its users. This could anything from delivering office branch locations, special daily offers, downloadable ringtones and anything else that you think your customers would want from the mobile web site.
  • Update content, regularly – the mobile web is the real-time web. This is due to the nature of the mobile phone, which is always with you, day and night. On the mobile web, users get online at any time and for any reason. For this very reason, its absolutely essential that your mobile web site content is updated quite regularly or you will lose traffic. This is probably best exemplified by the fact social networks like Twitter and Facebook are some of the most popular mobile web sites in Kenya due to the highly dynamic nature of their content.
  • Keep it simple, really simple – On the mobile web, less is more, really! Its very very important to keep your content and services on the mobile web as simple as possible. A mobile web site has to render effectively on a basic Nokia model or the latest Apple iPhone so the spectrum is very broad indeed. Its important to work with the lowest common denominator – the most basic web-enabled mobile phones should be able to work with your mobile web site.
  • Context, context and more context – Who are you targeting with your mobile web site? What do they expect from your mobile web site? Why will they keep coming back to your mobile web site? What do they do and where do they come from? Its all about context, know thy customer! Better yet, ask them what they would want from your mobile web site before you build it!

This article was first published in the December 2009/January 2010 edition of Management Magazine, a monthly publication from the Kenya Institute of Management.

Safaricom Business gunning for Corporate Internet Customers.

Safaricom is already undoubtedly a major player for Internet access at the consumer level with its 3G offering, Safaricom Live. The ability to access broadband Internet in most parts of Kenya on your phone or via a modem has made the Internet truly mobile for lots of folks. In fact, in a recent report from the Communications Commission of Kenya (CCK), the bulk of new Internet subscribers in Kenya from the 3rd quarter of 2009 we’re predominantly signing-up for wireless access instead of fixed line access.

However, in a somewhat stealth manner, Safaricom Business which is Safaricom’s corporate services division is also making a big push for the corporate Internet and data market. To re-affirm this fact, I recently received an offer from them for office-based connectivity at around 2/3 the price we are currently paying for the same bandwith capacity with our current Internet Service Provider (ISP). At the same time, they are giving a 2 for 1 month sign-up incentive at the onset of the service.

It would appear that this sort of offer is going to be a loss leader for Safaricom as they aggressively grow their corporate Internet and data business. But, think again, Safaricom is one of the largest buyers of Internet bandwidth from both the SEACOM and TEAMS cables in Kenya. In a nutshell, Safaricom is flooded with bandwidth that needs to be sold so this is obviously a way to get in on the biggest (and most profitable) Internet market in Kenya, the corporate customer.

Barclays Bank’s Call Centre and CCK’s Internet Price Cap Study.

This past week, Barclays Bank Kenya (BBK) launched its call centre which will serve customers throughout Kenya everyday of the week, twenty four hours a day. The move is designed to give BBK customers services around the clock. As one of Kenya’s largest and most successful banks, BBK clearly wants to differentiate itself from the competition by always being available to them, atleast on phone. This move follows BBK’s launch of mobile banking with their Hello Money service as well as more recently Internet banking.

In other (possibly?) controversial news this past week, the Communications Commission of Kenya (CCK) announced that it has launched an Internet pricing cap study that will be released in March 2010. The study has been initiated to establish the true costs of delivering Internet bandwidth to Internet users in Kenya by the Internet Service Provider (ISP) community. The move has already met with fierce resistance from the ISPs since they say price caps could seriously harm the viability of their businesses.

The real issue at hand behind CCK’s price cap study is that since the SEACOM and TEAMS high speed undersea cables went live in Kenya, Internet access prices have NOT really dropped for the end-user, even though bandwidth in some cases has been quadrupled for the same pricing. The paradox is that ISPs have seen their bandwidth costs drop by over ten times from what they used to pay for satellite links before SEACOM and TEAMS. Therefore, CCK is planning to regulate ISP pricing if required, so as to have them reduce their end-user pricing correspondingly. This is going to be a really hot button issue in the next few months but at the end of the day the key driver is for Kenya’s Internet users having abundant, low-cost, high-speed and reliable Internet access.

KTN Bloggers Roundtable with @larrymadowo, @moseskemibaro and @wanjiku

This is the KTN TV Bloggers Roundtable that was held this past week on Friday the 13th November 2009 and hosted by Larry Madowo featuring Rebecca Wanjiku and I. Enjoy the show below on Vimeo!

KTN Bloggers Roundtable meeting with Larry Madowo, Moses Kemibaro and Rebecca Wanjiku from Moses Kemibaro on Vimeo.

You can also download the entire interview in MP4 format below:

KTN TV Bloggers Roundtable with Larry Madowo, Moses Kemibaro and Rebecca Wanjiku

Kenya Music Week 2008 Social Media Interview.

This is an interview I did in late 2008 at the Kenya Music Week on Marketing Kenyan Music via Social Media and the Internet.

KTN feature on SEACOM Landing Implications.

This is (now) a pretty old KTN TV feature that was done some months back by Larry Madowo on the launch of SEACOM in Kenya. Robert Koech and I from Dotsavvy we’re interviewed for the same. Believe it or not, this is also my very first YouTube video upload to the Internet! More to come soon! Enjoy!

KCB and Kenswitch launch ATM sharing.

In the news this week, Kenya Commercial Bank (KCB) and Kenswitch have announced an Automated Teller Machine (ATM) sharing deal in which over 650 KCB ATMs in East Africa will now be accessible to customers who have bank accounts with Kenswitch partners. At the same time, KCB customers will now be able to access Kenswitch partner bank ATMs. Kenswitch is run by a consortium of banks under the National Payments Systems Modernization and Reform Process of the Central Bank of Kenya. Kenswitch enables participating financial institutions to share payment infrastructure such Automated Teller Machines (ATMs) and Point of Sale (POS) terminals so as to avoid the duplication of scarce resources. KCB on is Kenya’s largest commercial bank which is also operational in Uganda, Tanzania and Southern Sudan.

YU gets really low on cross-network mobile calls.

YU, one of Kenya’s newest mobile networks has launched a major offensive this week by lowering its cross network rates from an already low Kes. 7.50 per minute to now Kes. 6.00 per minute. This is really really low since the much larger Safaricom and Zain charge closer to Kes. 10.00 per minute within their own networks. This effectively means its cheaper to call from a YU phone line to say Safaricom than it is to call from Safaricom to Safaricom. What remains to be seen is whether YU will eventually make a big dent on its competition by charging such low per minute rates, especially when most networks in Kenya are seeing a serious decline in their Average Revenue Per User (ARPU) over the past year.

Mobile Web Advertising taking off in Kenya.

The big news of the past week was the announcement from Google that it had acquired the mobile web ad network Admob for US$ 750 million. Now, for those who have been using or tracking the mobile web ad market for sometime now, this was no real surprise since Admob was significantly larger than Google on the mobile web for display ads on mobile web sites and applications. Buying Admob effectively makes Google the largest mobile web ad network in the world, when you combine Admob with their existing mobile advertising offering(s).

Google’s acquisition of Admob is significant for several reasons, at least from my perspective. I have been writing now for the better part of a year that the mobile web is undoubtedly the next big thing for Africa and other emerging markets when it comes to Internet growth. For one thing, its a known fact that most new Internet users in countries such as Kenya and elsewhere in Africa in are getting online in droves, but primarily on the mobile web, via their mobile handsets.

Recent price reductions, bandwidth upgrades and nationwide ubiquity of mobile Internet access are creating an enabling environment for a sharp increase in usage and new subscribers. Naturally, this means that over time more, if not most Internet users in Kenya, as well as the rest of Africa, will access the Internet via the mobile web. As a result, where there is an audience, there will be a market for advertising – the writing is on the mobile screen! The future of advertising online (especially in emerging markets) is going to be on the mobile web!

In Kenya, Google already has a regional office that has been operational for several years through which they have been leading initiatives such as local versions of Google Maps, Google SMS, Google Adwords, Google Apps, YouTube and Google AdSense. The integration Admob into its offerings means that Google will bolster its revenues from Advertisers who want to potentially (and eventually?) reach 18+ million Kenyan mobile subscribers via the mobile web, in a highly targeted and contextual manner (Kenya currently has around 4+ million Internet users).

In addition to generating more revenue by selling mobile web ads, there is another possibly more interesting aspect to Google’s acquisition of Admob which is access to rich mobile web usage data and statistics. In a nutshell, Google will be able to capture and monitor (global) usage trends on the mobile web much more accurately than it ever has before. Access to qualitiative mobile web usage intelligence will ultimately drive key mobile strategies for Google’s product and service development initiatives.

In terms of mobile web usage intelligence, the current Admob web site already provides a tantalizing view in its monthly reports. Admob’s Mobile Metrics is a monthly compilation of reports that you can download which have detailed global mobile web usage statistics for different regions and countries. In fact, just last month when I was in South Africa for the Mobile Web Africa Conference, I happened to meet an Admob representative who said that they we’re “thrilled” by the Kenyan market since they achieved 180 million mobile ad impressions in a recent month – thats HUGE by the way considering that Kenya still has very few local mobile web sites so most of these ad impressions must have come from non-Kenyan sites.

To further reinforce the fact that Admob is already doing well in Kenya, I was recently contacted by another mobile ad network, Inmobi. Inmobi also claim that Kenya is delivering impressive mobile web ad impressions to the tune of approximately 35 million per month for around 50 mobile web sites through which which their ads are displayed. Also, according to BuzzCity, another global mobile web ad network, Kenya enjoyed 52% growth and replaced United Kingdom in 5th place in its 2009 3rd quarter index report. Incidentally, Kenya was also the only country amongst the Top 5 that enjoyed positive growth.

The bottom line is that the mobile web ad market is booming in Kenya. Going forward, the question is whether this will be enough incentive (yet) for Kenyan and African businesses, brands, and developers to jump into the game and start building mobile web sites and applications to monetize this fast growing advertising channel!

@kahenya and @mkaigwa talk social media with KTN’s @larrymadowo :)