Readers of my blogs (not that I have the time to plough out tons of them) may know that besides having a passion for advertising, I have an interest in blockchain technology and a passion for bitcoin. Bitcoin is a fascinating and disruptive technology, and besides having the potential to make people seriously wealthy, could also change the way we pay for things.
With the growing awareness – and interest in – bitcoin as a means of remittance and a creator of wealth, more and more people in more and more countries are looking to buy the crypto-currency, and asking how and where they can buy it. The fact is, buying bitcoin (or BTC as it is more commonly known) is easy. All you need to do is search online for eg “Buying and selling bitcoin in South Africa or ““Buying bitcoin in Nigeria and Ghana”. A no-brainer, I know.
I typically buy bitcoin on www.localbitcoins.com but there are two other reputable platforms in South Africa that one could try:
Just make sure that you do your due diligence before deciding who to buy your bitcoin from.
Before being able to purchase the currency, though, you’ll need to open a bitcoin wallet – which you’ll do when you register an account. Next step is to place your order, indicating how many BTC you want. Once you’ve paid the amount shown, the bitcoin will be sent to your wallet. And you’re done. The whole process should take no more than a few minutes.
Buying bitcoin is a simple decision. A far bigger decision is: what to do with your bitcoin?
Spend it? Hold on to it? This is up to you, but if you had to ask me, I’d say: DON’T spend it but rather put it away and forget about it. (Or buy into a bitcoin mining pool, so as to increase the number bitcoin you hold).
At the beginning of last year, the bitcoin price was US$380. Today, it’s over US$1 000. Next year, it could be US$2 000. And the year after that, US$3 000. Of course, no-one knows for sure….but the fact that there can only ever be 21 million bitcoin in circulation means that the price will likely go up and up. Making it one of the best investments around.
It’s something you may want to keep your eye on.
Gerard Kavonic is an experienced copywriter, conceptualiser of advertising ideas and co-ordinator of marketing projects, running a small – tiny – advertising agency in Johannesburg. He is also an ardent proponent of bitcoin and is an active member of BitClub Network. He can be contacted on +27 83 444 9888 and emailed on [email protected] His skype address is gerardkavonic
Having been in the ad industry for a good 29 years, I’ve long had a passion for advertising. And since being introduced to bitcoin a year ago, I’m sold on this too.
Fortunately, I can indulge in both by announcing that payments for my advertising and design services can now be made with the crypto-currency.
Realistically, I’m not expecting a rush of clients to take me up on the offer though – for the simple reason that bitcoin is not widely known in South Africa, and not well-understood either.
In time it will be, but for now, it’s regarded by some as some sort of “fad” (which it definitely isn’t) or as a currency associated only with “illicit activity”. (A misnomer if there ever was one).
So what is bitcoin?
In a nutshell, bitcoin is a crypto-currency allowing for an incredibly inexpensive and quick way of transacting and making payments. All transactions are transparent and appear on the Blockchain – a global public ledger – as they happen. (You can see how many people are transacting in bitcoin as you read this, by going to www.blockchain.info and viewing scrolling transactions in the bottom left corner of the screen).
In the US, more than 200 000 merchants already accept payment in bitcoin, and one can pretty much buy anything with it – from airline tickets to sea cruises, and from a coffee at Starbucks to an ipad on Amazon.
And how does it work?
For bitcoin to work, people – or businesses – need to open a Bitcoin wallet.
Once you have bitcoin, you can make payments from your wallet to another wallet at the click of a button. In seconds, you’re done – payment made.
In South Africa, there are already a number of merchants accepting bitcoin – most of them online shops. They include:
BidorBuy
Takealot
Raru
Gadgetshop
GrowGuru
Silver Bananas
Landmark PC
Appliance Online
SMACS
Runway Sale
In time, there will be MANY more.
With the price of bitcoin set to soar over the next few years (that’s a prediction, shared by many analysts around the world), more and more businesses will start to accept it as the uptake of the crypto-currency increases globally. Huge growth is already being seen in the likes of India, Malaysia, China and South Korea whilst a number of countries in Africa – particularly Kenya, Uganda, Ghana and Nigeria – are starting to embrace blockchain technology, and with it, bitcoin.
As more South Africans become aware of bitcoin and its advantages (there’s lots of information on the internet), uptake will increase. That’s a given.
Until that happens though, I’m not expecting a whole bunch of clients knocking at my door, wanting to settle their bills in the currency.
For me, it’s good enough right now that they know that the option exists – and that by paying in bitcoin, they could get an up to 15% reduction on their bill – depending on the requirement ie logo design, brochure design, website design, radio commercial, TV commercial, billboard, street pole posters etc.
(And yes, I’d be happy to forward my pricing to anyone interested, showing pricing in rands and bitcoin (BTC). Email [email protected]
In the meantime, if you need help opening a bitcoin wallet or have any questions relating to bitcoin – or for that matter, the soon-to-be-launched bitcoin payment gateway, Coinpay – my contact details are below.
Gerard Kavonic is an experienced copywriter, conceptualiser of advertising ideas and co-ordinator of marketing projects, running a small advertising agency in Johannesburg. He is also an ardent proponent of bitcoin and is an active member of BitClub Network. He can be contacted on 083 444 9888 and emailed on [email protected]
Suddenly, people are starting to talk about bitcoin. It’s all over the internet – with articles that are ebullient and some, that for whetever reason, are less so.
You’re either a believer or you’re not. Is it a fad? Or is it the real deal?
I’m just an advertising guy (and a biased one at that, in that I’m an ardent proponent of the currency) so what do I know?
Only the following, after spending some time this past week with a person who has a deep understanding of crypto-currencies, and who was in South Africa to meet with interested local parties – the American co-founder of BitClub Network, of which I’m an active member:
Bitcoin is currently used by a minute percentage of the global population, but is already priced at around US$740 per bitcoin (BTC).
The price of bitcoin is projected to go a LOT higher over the next few years. (With a fair bit of volatility on the way)
Bitcoin is being kept an eye on by Governments and banks around the world, who are trying to understand the implications of a quick and easy means of payment between individuals that can’t be controlled.
Bitcoin provides an incredibly inexpensive means of paying another person.
It is already accepted by more than 200 000 establishments in the US.
It can be used to purchase anything – from a coffee at Starbucks to airplane tickets on Emirates to a castle in Scotland.
Transactions are all recorded on the Blockchain, which is a public ledger open to all.
One can easily buy or sell the crypto-currency on any of these platforms.
Some people who DO know about bitcoin include:
Virgin’s Sir Richard Branson.
Founder of Microsoft, Bill Gates.
Ex US vice-president, Al Gore.
CEO of Google, Eric Schmidt
Venture Capitalist and founder of Netscap, Marc Andreessen.
Founder of McAfee, John McAfee.
Former CEO of Paypal, David Marcus.
Co-creator of Facebook, Tyler Winklevoss.
Well-known entrepreneur, Eric Voorhees.
Former Chairman of the US Federal reserve, Ben Bernanke.
Here’s what they have to say about bitcoin.
Sir Richard Branson “Virgin Atlantic is a bold entrepreneurial technology. It’s driving a revolution and bitcoin is doing the same when it comes to inventing a new currency” “
Bill Gates “Bitcoin is a technological tour de force” “
Al Gore “I think the fact that within the bitcoin universe, an algorithm replaces the functions of Government, is actually pretty cool” “
Eric Schmidt “Bitcoin is a remarkable cryptographic achievement and the ability to create something that is not duplicable in the digital world has enormous value” “
Marc Andreessen “At our venture firm, we continue to see an escalating stream of fascinating new bitcoin uses, cases and applications from entrepreneurs”
John McAfee “ You can’t stop things like bitcoin. It will be everywhere and the world will have to readjust. World governments will have to readjust“
David Marcus “I really like bitcoin. It’s a store of value, a distributed ledger. It’s a great place to put assets” “
Tyler Winklevoss ‘We have elected to put our money and faith in a mathematical framework that is free of politics and human error“
Eric Voorhees “Economists and journalists often get caught up in this question: why does bitcoin have value? And the answer is very easy. It’s useful and scarce”.
Ben Bernanke “Bitcoin may hold long-term promise, particularly if the innovations promote a faster, more secure and more efficient payment system” “
I don’t know about you, but I’d rather take a cue from people of this calibre than a broke next door neighbour who tells me that bitcoin is a fad and that I should stay clear of it.
Another clincher for me is something the co-founder of Bitclub Network pointed my attention to on the site blockchain.info – the number of reputable global firms and institutions that are actively – and currently – funding blockchain and bitcoin start-ups. One of which is The New York Stock Exchange, which for the first time in its 200 year history, is putting money behind an entity that is NOT listed.
Now THAT is interesting….
Naspers too.
Interesting again…
Gerard Kavonic is an experienced copywriter, conceptualiser of advertising ideas and co-ordinator of marketing projects, running a small – tiny – advertising agency in Johannesburg. He is also an ardent proponent of bitcoin and is an active member of BitClub Network. He can be contacted on 083 444 9888 and emailed on [email protected]
Last Saturday saw Bitclub Network’s bitcoin office open on Malibongwe Drive in Randburg, Johannesburg.
While Bitclub has been in South Africa for a little more than eight months, the opening of its offices in Johannesburg heralds a milestone in that it turns any perception that it’s some kind of elusive ordubious network marketing opportunity on its head. By investing in a smart new two story building, credence is given to concrete ie that BitClub Network is a real business that’s invested in Africa and is here to stay.
By all accounts, the launch was well received with more than 450 people attending. (Only 250 people were expected). Many people attending were either members of BitClub Network eager to see the new offices, people who had heard about BitClub or people wanting to know more about bitcoin, and how to profit from it.
So, what is bitcoin?
Often referred to as BTC, bitcoin is probably the best-known and most widely-used crypto-currency. It works a lot like cash in that you receive it instantly when it’s sent. So if you have a bitcoin wallet and I have a bitcoin wallet (opening a wallet is simple and quickly done), I can in seconds pay you in BTC instead of, say, via an EFT. It’s cheap, quick and is already used by many people around the world. Every transaction is recorded on a public ledger called the Blockchain, and if you want to see how many people are transacting using bitcoin as you read this, go to www.blockchain.info and take a look at the bottom left corner of your screen…
But this is just the start. As more and more people around the world become aware of blockchain technology, and bitcoin in particular, usage will increase. It’s just a matter of time, in my opinion.
Already banks and other financial institutions are eyeing blockchain technology to see how and where they can make use of it, and IBM has predicted that by the second half of next year, a good 15% of the major banks around the world will have incorporated blockchain technology into their businesses. Whilst not to say that banks will necessarily use (or promote) bitcoin, it’s likely that the growing use of the technology will have a positive spin-off for BTC, which will result in more acceptance of the crypto-currency, wider usage of the crypto-currency – and a higher bitcoin price.
As things stand, the price of one BTC is around the US$610 mark.
Predictions vary as to the price of bitcoin in the future, but most analysts feel that prices will go up – and that in a few years, could be as high as US$2000 or US$3000. (A few predict a price of US$10 000 per BTC, in which case, a lot of people will make a LOT of money!!).
That said, no-one knows for sure and it’s really a question of supply and demand. The fact that there can only ever be 21 million BTC in circulation is the catalyst behind the prediction of these extraordinary forecasts. That said, people are excited by the possibilities, and hence, the growing interest.
And when people like Richard Branson, Bill Gates and former US vice-president Al Gore make comments like:
“I’ve invested in bitcoin because I believe in its potential and the capacity it has to transform global payments is very exciting”
“Bitcoin is better than currency in that you don’t have to be physically in the same place and of course for large transactions, currency can get pretty inconvenient”
“I think the fact that within the bitcoin universe an algorithm replaces the function of Government is actually pretty cool. I am a big fan of bitcoin”
people sit up and take notice.
Hence, no surprise at the number of people who turned up for the opening launch on Saturday.
BitClub Network is essentially a network marketing opportunity, in which people pay and earn in bitcoin. (If you don’t have bitcoin, you can buy the currency on platforms like www.localbitcoins.com or www.altcointrader.co.za). But it’s not just for networkers. Many people have joined as investors, in which they pay a once-off membership fee, buy into a bitcoin mining pool and do nothing further than watch their BTC increase over time.
It’s far better than just buying bitcoin and leaving them in a bitcoin wallet…
By all accounts, people are joining BitClub in increasing numbers – and not just in South Africa, but in neighbouring SADC countries and further afield too ie Kenya, Uganda, Nigeria and even Dubai.
The South African office will be the launching pad into Africa, and knowing the person behind the entry of BitClub into South Africa as I do, I wouldn’t be surprised if other BitClub Network offices are opened in the years ahead…
Gerard Kavonic is an experienced copywriter, conceptualiser of advertising ideas and co-ordinator of marketing of projects. Based in Johannesburg, he runs This country’s smallest ad agency, Kavonic Hone. See www.kavonichone.co.za He is also involved in the launch of Bitclub Network in South Africa. See www.bitclubnetwork.co.za He can be reached on 083 444 9888 and on the following email addresses: [email protected] and [email protected]
As one of the people behind the launch of BitClub Network into South Arica and Africa, I’m often asked whether we cater for network marketers only – and the answer I give is: no, not at all. BitClub Network is for anyone who has an interest in, or believes in, bitcoin as a vehicle for wealth creation.
Whist BitClub Network has a network marketing component built-in (which appeals to the network marketers out there), one can quite easily join purely as an investor. Fact is, there are many South Africans who have joined as investors with no intention of “recruiting” others. And there is nothing wrong with this.
What they do is pay their once-off membership fee (US$99) and then buy into one of the mining pools – of which there are three (Pool 1, costing US$500), Pool 2 (costing US$1 000). Pool 3 (costing US$2 000) or the Founder’s Pool (costing US$3 500). The Founder’s Pool equates to buying a share in all three pools and many investors prefer buying straight into the Founder’s Pool, without first buying into the lesser pools.
When an investor buys into a mining pool, what they are doing is buying mining equipment to “mine” bitcoin. This said, it’s really not important for you to know the technicalities or to understand bitcoin “mining” (although you’ll find a number of videos on the website www.bitclubnetwork.com and You Tube explaining the process if you’re interested).
Bitcoin mining is done on the investor’s behalf and profits from this mining activity are shared amongst the investors in that particular pool. Investors can choose to be paid daily or can select to “store” their bitcoin for the period of their choice. The latter option is generally preferred as it compounds one’s earnings over time.
The difference between the mining pools (besides from the cost) is the percentage paid out and the percentage re-invested to purchase newer mining equipment.
(Another difference is the number of “club coin” given to you – but more about this in a bit).
Investors pay in bitcoin – and get paid in bitcoin (BTC).
With the price of bitcoin currently at around US$600 per bitcoin (BTC) – . go to http://www.coindesk.com/price/ for the latest price – we advise that you purchase as many bitcoin as you can and hold on to them. For the simple reason that there can ever be only 21 million BTC in circulation. So it’s a question of supply and demand.
There are many analysts and crypto-currency “experts” who predict that the price of bitcoin could get as high as US$10 000 in 3 years – whilst there are others who believe it could be even higher. The fact is, no-one quite knows.
My take on things is that even if BTC reaches a – relatively conservative – US$1 500 in 3 years, this is not a bad return. In which case, the advice is the same: BUY BITCOIN.
My preference is for the latter, but only for the reason that this is the platform I’m familiar with.
Once you’ve opened an account and created a bitcoin wallet, you can either:
Leave your BTC in your bitcoin wallet and forget about them
Or
Use them to buy into a mining pool, so they can work for you.
By buying into a mining pool, your bitcoin will grow over time.
You’ll also be given BitClub’s own “in-house” crypto-currency (ClubCoin) – free and gratis – as a thank you (so long as you buy in before the end of December 2016).
(Note that whilst ClubCoin can be traded on the open market as we speak, it’s best to hold on to them as they WILL increase in value).
Whilst bitcoin is a relatively new concept in South Africa, and not widely understood, we’re happy to meet with anyone interested so as to expand on the opportunity.
The minimum investment would be US$599 – US$99 to join Bitclub Network and US$500 to buy into Pool 1.
Gerard Kavonic is an experienced copywriter, conceptualiser of advertising ideas and co-ordinator of marketing of projects. Based in Johannesburg, he runs This country’s smallest ad agency, Kavonic Hone. See www.kavonichone.co.za He is also involved in the launch of Bitclub Network in South Africa. See www.bitclubnetwork.co.za He can be reached on 083 444 9888 and on the following email addresses: [email protected] and [email protected]
Started eight months ago by a lady in Johannesburg who had heard of bitcoin (BTC) and was intrigued by it, BitClub Network South Africa is growing in leaps and bounds.
Whereas the first few meetings were (predictably) not that well-attended, these days there’s scarcely a seat to be had in the weekly BitClub Network presentations. This is partly due to the magnetism of the lady in question (the hardest worker I have EVER encountered) and partly due to the interest in bitcoin. Not that people understand it, of course….
Bitcoin is an interesting concept, and it’s one that people either choose to embrace or stay away from entirely. (Those that do the latter in all likelihood feel that it’s not something that they will ever quite understand, and if they can’t understand it, they’ll stay away from it. Which is all well and good. Some people are more open-minded than others and this will always be the case).
So what is bitcoin (BTC)?
Bitcoin is the first decentralised digital currency that works peer-to-peer without needing a bank or central repository. It’s a global currency that uses a public ledger to record transactions being sent from one person to another. This all happens without the involvement of a bank and it’s not controlled by any government, regulating body or person. All transactions are completely transparent and thousands of copies of the ledger are kept across a distributed network of computers.
It’s a currency that nobody can control and it’s for this reason that it is generating the kind of interest that it is. Bitcoin works a lot like cash in that you receive it instantly when it’s sent and once you have it, you have it. This makes bitcoin a truly revolutionary peer-to-peer system that is designed to get even better as more and more people start using it.
Still confused? That’s fine. All you need to know is that it works, it’s legal and it’s the way of the future!
In the meantime, here are some of the questions most often asked:
Is BTC not used for illicit activity?
The answer is that whilst it has been used for sporadic illicit activity in the past (for purchases of drugs in the US, for instance), so too has the US dollar and other fiat currencies. The sad reality is that we live in a world of dishonesty, criminality and corruption and bitcoin’s ease of use is sometimes taken advantage of. On the positive side, a good 98% of bitcoin usage is ethical and honest.
Is BTC not MMM?
ABSOLUTELY NOT. (I put this in capital letters to knock this misconception on the head!!). Whilst MMM made the headlines for all the wrong reasons, the only reason why bitcoin is sometimes associated with MMM is because MMM allowed payments in bitcoin. Bitcoin is a currency. It has nothing to do with MMM.
Where could one spend bitcoin?
If you were in the US, for instance, you’d be able to spend BTC in thousands of places, and for a multitude of things – from a coffee at Starbucks to an airline ticket to London. In South Africa, we’re at the very early stages. As things stand, you could make purchases on, for example, BidorBuy using bitcoin. And you could pay people, using BTC. In time, you’ll be able to buy pretty much anything. In fact, if you apply for a Visa Xapo card from http://www.xapo.com/ you could load your bitcoin onto the card and use the card for purchases from Woolworths, Pick n Pay, Edgars or wherever you want, right now.
There’s tons of information on bitcoin on the internet, so if it’s of interest to you, check it out.
But back to BitClub Network.
A global wealth-building platform for the digital currency market, BitClub Network allows people to earn profits from its shared mining pools. There’s also a referral program through which members earn by introducing other people and building their teams– network marketing, in other words (but NOT a pyramid scheme!!!).
It started about two years in the US and was then taken to Malaysia, where it just exploded. (In terms of people joining). From a post I saw yesterday, I see that it’s now taken hold in South Korea, and other countries in SE Asia.
Having met with the co-founder when he was in South Africa two months back, and due to my working closely with the person who brought it to South Africa, I know that the plan is to grow BitClub Network across South Africa, and then, to launch it into Africa.
Things will go (grow) quickly, and already, people are joining in Kenya, Zimbabwe, Zambia, Uganda, Nigeria and even Dubai.
BitClub Network South Africa’s offices open in Johannesburg next month. So, things are happening at pace, and people who can afford to, are joining in numbers.
The cost to join is US$99 and to buy a share in the cheapest mining pool is US$500. So if you’re interested, you’d need a minimum of US$599. A good investment, in my opinion. There’s more info on http://www.bitclubnetwork.co.za if you’d like to visit.
On my side, I’d be happy to meet with anyone interested – assuming they’re in Johannesburg, of course!
Gerard Kavonic is an experienced copywriter, conceptualiser of advertising ideas and co-ordinator of marketing of projects. Based in Johannesburg, he runs This country’s smallest ad agency, Kavonic Hone. See www.kavonichone.co.za He is also involved in the launch of Bitclub Network in South Africa. See www.bitclubnetwork.co.za He can be reached on 083 444 9888 and on the following email addresses: [email protected] and [email protected]
OK, I confess – maybe the title of this blog article is a bit too clever for its own good. The reality is that there’s no correlation between advertising and bitcoin, other than the fact that I’m involved in both – and passionate about both.
I’ve been in advertising for nearly 29 years, running This country’s smallest ad agency (in Johannesburg) and am an experienced copywriter, conceptualiser of advertising ideas and co-ordinator of marketing projects – whilst I’ve been involved in bitcoin for no more than a year. Bitcoin excites me. When I heard that bitcoin, blockchain technology and crypto-currencies could eventually be as a disruptive as the internet, it had my attention – and I began to delve deeper.
There’s tons of information about blockchain and bitcoin on the internet, but what really got me interested was the fact that bitcoin was endorsed – and enthused about – by the likes of Sir Richard Branson (founder of Virgin Group), Bill Gates (founder of Microsoft) and Al Gore (45th Vice President of the United States). See their comments below:
Sir Richard Branson: “I have invested in bitcoin because I believe in its potential, the capacity it has to transform global payments is very exciting”
Bill Gates: “Bitcoin is better than currency in that you don’t have to be physically in the same place and of course for large transactions currency can get pretty inconvenient”
Al Gore: “I think the fact that within the bitcoin universe an algorithm replaces the function of Government is actually pretty cool. I am a big fan of bitcoin”
There are many other people who believe in bitcoin. The head of Google, for instance. (And if he believes in the potential of the currency, it’s worth listening, I’d say.)
If people of this calibre were excited about bitcoin, I decided that I would be guided by them rather than by friends or family who told me that yes, they had heard about bitcoin, but that I should stay away from it as it was an “illicit currency used for illicit activity” and that it was too risky and a “fad”.
A fad, it’s clearly not. Bitcoin and blockchain technology will be as disruptive as the internet. Yes, we may be a few years away from that, but there’s a high probability of this being the case. One only has to surf the internet to see how many blockchain-related developments there are currently around the world.
(Closer to home, ABSA bank have announced their intention to look into blockchain technology – the first African bank to do so). Others will surely follow.
Internationally, Japan has made bitcoin a legitimate currency, and whilst Russia was wary about bitcoin in the beginning, there are a number of signs that the doors are opening to crypto-currencies in that country.
Malaysia? BTC is huge there.
Korea: Gaining traction in a big way.
India? Getting started…
South Africa? Judging by the growth of BitClub network here, and the number of people enthusing about bitcoin, it’s just a matter of time before it takes off here…and other countries in Africa. (BTC is already being adopted in Kenya, Uganda, Nigeria and doors are opening in Dubai as we speak..)
It’s just a question of time before crypto-currencies – of which bitcoin (BTC) is the most widely-known and accepted – become mainstream around the world. Governments will be come more embracing of the technology, as will banks and other financial institutions.
In the meantime, many people around the world are already interacting with BTC (paying each other, or buying goods), and if you’d like to see the transactions happening currently, go to Blockchain on https://blockchain.info/ and look at the transactions at the bottom left corner of the page. Blockchain is the public ledger, on which every single BTC transaction globally can be viewed as it happens.
At the time of writing, the price of bitcoin is around the US$585 mark. See http://www.coindesk.com/price/ for the current price.
As there can only ever be 21 million bitcoin in circulation, the forecast for BTC is undeniably upwards. Yes, there will be volatility and yes, the price could go down before it goes up..but the curve will head upwards for sure.
Whilst no-one can say for certain, a number of analysts believe that the price of BTC could get to as high as US$10 000 in 3-5 years.
Even if it gets to $1 500, I’m in. BTC is the way of the future and I’m by no means the only South African to think so.
Gerard Kavonic is an experienced copywriter, conceptualiser of advertising ideas and co-ordinator of marketing of projects. Based in Johannesburg, he runs This country’s smallest ad agency, Kavonic Hone. See www.kavonichone.co.za He is also involved in the launch of Bitclub Network in South Africa. See www.bitclubnetwork.co.za He can be reached on 083 444 9888 and on the following email addresses: [email protected] and [email protected]
If Nigeria is unchartered territory and new to you, know this: it’s nothing like South Africa.
Despite being only two thirds of South Africa’s size, the country has a staggering one hundred and eighty million people – three times South Africa’s population. Besides being the continent’s most populous country – with one sixth of Africa’s total population – Nigeria is the largest economy with a national GDP of $574 billion (versus South Africa’s $350 billion) (2014 statistics at prevailing official USD exchange rate)
The GDP per capita is $6 100 versus South Africa’s $13100 although Nigeria’s middle income segment – the fastest growing on the continent – makes up for the reduced spending power through its sheer volume and growth. And it is this fact primarily that multinational and South African enterprises are targeting for growth.
But don’t drop everything and head for Oliver Tambo International airport just yet. Too many South African companies have set up shop in Nigeria thinking they’ll clean up and have left with their tail between their legs, having had their lunch eaten.
You need to do extensive homework and research before laying down a marker here and it is strongly recommended that you make contact with the South Africa Nigeria Chamber of Commerce in Johannesburg (http://www.sa-ncc.co.za) early on in the process.
The organisation will prove invaluable in providing the information and processes critical to navigating the bureaucracy and kilometers of red tape typically encountered by companies and personnel wishing to enter Nigeria for business.
Nigeria is rich in culture, art and heritage where the people are genuinely friendly and helpful and communicate in some 500 indigenous languages. And know this: Almost all company management are degreed – at local and international universities and business schools – and are without doubt, more worldly than their South African counterparts. Nigerians are ardent travelers bringing their experience gained to the local market.
The cities are massive (Lagos has an estimated population of between 17 and 21 million where other cities have populations as follows: Ibadan (3.5 million), Abuja (3 million), Kaduna (1.6 million), Ogbomoso (1.5 million), Enugu (0.7 million), Ilorin (0.8 million), Benin City (1.4 million), Zaria (1.2 million), Jos (0.9 million), Onitsha (0.5 million), Oyo (0.6 million), Kano (3.6 million) and Port Harcourt (2 million) to name a few. Vast populations and choked traffic routes create commuter pressure. Peak traffic is from 05h30 – 09h00 and 16h00 – 19h30 with the average commute to and from work being as much as 3 hours.
Development in recent years – infrastructural, commercial and retail is enabling Nigeria to ‘catch up’ and, as evidenced by its fairly recent ranking as Africa’s #1 economy, is leapfrogging traditional competitors, like South Africa and Egypt. Improved living and working conditions translate into increased job opportunities that in turn fuel growth.
So who and where to target? Unlike in South Africa, in which disposable income is to be found primarily in a few major urban concentrations (Johannesburg, Pretoria, Cape Town, Durban, Port Elizabeth and to a lesser extent, East London, Bloemfontein and Polokwane), Nigeria’s economically viable LSMs are spread across a much wider footprint. But the challenges are not limited to geographical and language considerations.
From a media and communication perspective, too, Nigeria can be perplexing. Especially when you consider that there are:
More than 20 local TV stations in Nigeria – excluding DStv, which has more subscribers than South Africa.
100 mainstream radio stations in Nigeria
Approximately 45 newspapers in Nigeria with the weekend tabloids being considered ‘magazines’. Most international magazines are readily available on the street in major CBDs.
A great many outdoor media options available.
And that:
o Nigeria’s digital landscape is vast with many opportunities to take advantage of.
o Social media is enjoying exponential growth.
o Nigeria has 70 million internet users in 2015 (growth >16% over 2014)
o Nigeria has 53 million unique mobile phone users
o 80% of online access is from smart phones
o 25% of FaceBook users in Africa are Nigerian
o The top 1 000 companies in Nigeria have websites
Obviously, once you have a Nigerian business presence and have your distribution channels set up and your products in-store, you’ll need to support them with marketing, both online and offline. Compared to South Africa, where as a marketer, you already have the creative, digital and media resources available, the Nigerian market can be quite daunting. Exciting too, though.
With the weakening rand and a sluggish South African economy showing no signs of improving in the short-term, more and more South African companies are looking to Africa, and will be looking to Africa – with Nigeria, Ghana, Liberia, Sierra Leone and other key markets in the region being given attention.
Nigeria – and for that matter, Ghana and the other aforementioned countries – remain largely untapped and present a far better prospect than looking for the more expensive ‘1st world’ market opportunities. It’s imperative however that you understand the region and market that you’re considering.
A colleague of mine, Simon Willar, who worked in South Africa in marketing and communication for many years, is now based in West Africa and has extensive contacts in Nigeria and knowledge of the region.
Besides being able to advise marketers as to how best to tackle the Nigerian and Ghanain markets, he could also assist in – for example – locating office space, legal resources, banking partners and advising on key logistical matters.
Whilst he makes trips back to Johannesburg from time to time, he can be reached at anytime on [email protected] and I’d suggest he’d be a good call.
Knowing him as I do, he’d be happy to help. Even if it’s just to point you in the right direction or answer any questions you may have.
In the meantime, here’s some Nigerian-related info you may find interesting, and handy:
Hotel room: Average, Lagos 02/2016: – $375/ZAR6000 pppn
Leased apartment: Average, Victoria Island, Lagos: +-$65,000/ZAR1,052,129 pa
Burger: Victoria Island, Lagos: N5,500/ZAR446
Transport: Uber and local taxi services
Telecomms: Landline, 4G cellular, data. Wifi available in hotels, coffee shops and mobile
My name is Gerard Kavonic of This country’s smallest ad agency, Kavonic Hone and I can be reached on [email protected] and 083 444 9888. I’m based in Johannesburg and you can see what I’m about on www.kavonichone.co.za
In a recession, or when things are tough (as they most definitely now are), business owners and marketers tend to put a lid on their advertising spend as a means of capping their expenses. And yet, whilst understandable, it’s often a mistake to do so.
The reason that advertising is often the first expense to face the chop is that it’s the easiest thing to cut. It’s far easier to send out an instruction to your ad agency and media agency to cut, by way of an example, TV advertising or radio advertising from a media schedule than it is to, for example, retrench staff.
History has shown that advertisers who stop advertising in recessionary periods have some catching up to do when the economy turns for the better. This stands to reason, as the advertiser who continues to advertise in a downturn will be better positioned to capitalise in an upturn as his or her advertising would have remained uppermind over time. The advertiser who has stopped advertising will have lost ground in the minds of his or her target market. (A matter of out of sight, out of mind..)
One of the most prevalent reasons given by marketers looking to cut, or stop, advertising is: there’s no money out there, so what’s the point? Fact is, that whilst some South Africans have no money (OK, many South Africans have no money), many do..something that was brought home recently when my wife and I tried to find a week’s timeshare on the coast. After days of searching, it became clear that there was none to be had.
How could this be, if people don’t have money? The cynic would say that they don’t have money because they spent on things like timeshare, but this rings hollow.
South Africans are spending WEEKS on holiday. And as a family who was fortunate enough to have eventually found somewhere to stay and as a result, went away for ten days, we can vouch for how much an extended holiday would cost. Eating out every day and keeping the kids entertained costs plenty. And yet, restaurants are pumping and queues at the movies or fun parks never seem to end.
Another thing that struck us is how many people have second homes on the coast: homes that cost millions. And boats, that sit idly moored to those homes..
People short of money? Certainly not all of them…
It is clear that there are many people in this country (admittedly in the upper LSMs) who have money to burn. And these are people who continue to eat, continue to drink, continue to entertain, continue to drive, continue to bank, continue to invest and continue to holiday.
Quite simply, they need to be advertised to – regardless of the state of the economy.
The bottom line is that if you’re not advertising to them, you’re not in the picture. Simple as that.
But what about the middle class? Or the lower income-earners in our country? Here a different picture emerges because they’re more under pressure, financially-speaking. That said, they still need to eat and drink, still need to buy household goods, still need to put food on the table. So they also need to be advertised to.
What marketers need to do when things are tough is box clever.
If your product is not moving, you need to think of ways to GET it moving. Discount the price, offer a “buy one, get two” offer, start a loyalty program…think out the box and get creative.
The worst thing is to put a stop to your advertising efforts. But if you have absolutely no choice other than to cut back, do it strategically. Cut back on media that you consider to be “nice-to-haves” – this might be in the form of TV advertising, radio advertising, cinema advertising, outdoor advertising, newspaper or magazine advertising – and continue with advertising that brings you response. (Digital advertising more than likely).
With people googling practically everything these days, make sure that your website is professionally optimised for search engines. You need to come up on the first page of Google when people search for the type of product or service you offer. This is imperative. It’s said that the best place to hide a dead body is on the second page of Google. Why? Because no one ever searches there. Quite simply, if you’re not on the first page of Google, you’re dead in the water.
Google Adwords are also good. If you’re running Adword campaigns, continue running them. And if they’re not delivering the type of response you expect, find someone professional to manage them.
Google Display? Also good. Keep it going.
Blogs? They work well. Blog more than you have in the past.
If your business is struggling, cut your advertising spend if you must – but at the very least – maintain a presence online. You’ll regret it if you don’t because , despite what you may believe, there ARE people with money out there. And amongst them will be people looking for what you offer.
My name is Gerard Kavonic of This country’s smallest ad agency, Kavonic Hone and I can be reached on [email protected] and 083 444 9888. You can see what I’m about on www.kavonichone.co.za
It was with some pride that my ad agency, positioned as This country’s smallest ad agency, was recently adjudged “Best ad agency Johannesburg” in the African Corporate Excellence Awards 2015.
To be honest, I was surprised that I was even short-listed – but many thanks to all those who nominated me. (And when I say me, I mean “me” as to all extents and purposes, I’m the only one at the coalface).
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