Global Online Marketing Profile 2010 Forecast – South Africa
Global Online Marketing Profile 2010 Forecast – South Africa
Opportunity in the Market Opportunity Since 1994, when it was the ending the apartheid era within South Africa, this emerging market has undergone several changes to cope with the rapidly changing global landscape. South Africa has made much advancements in removing its previous economic system that was built on import substitution, high tariffs and subsidies, and extensive government intervention in the economy. The new government has made a move to limit the role of government in the economy and to promote private sector investment and competition. Today, South Africa is characterized by the system of two-tiered economy and exemplifies the features of both developed and developing nations around the marketing bureau Eindhoven world. It is an incredibly prosperous and industrialized country that has many qualities associated with emerging countries, including the division of labor into the formal and informal sectors as well as an uneven allocation of wealth and income. Unemployment is among the country's main socioeconomic challenges; Stats SA reports a 21.7 percent unemployment rate. Furthermore, an outdated infrastructure has hindered growth. Growth was strong from 2004 to 2008, however, it began to slow down in the second half of 2008 as a result of the global financial crisis's impact on the prices of commodities and demand. In the CIA Factbook, the GDP is at 300.4 billion USD and the Purchasing Power Parity is 4.9 billion USD. The nation's 2.8 percent real growth rate and 11.3% inflation rate is better than the previous figures however, the South African Government estimates that the economy needs to grow at an average rate of 4.5% until 2010 and then 6% to reach its goal of halving the country's high levels of unemployment by 2014. The Economist forecasts that inflation will fall to 6.6 percent in 2009 and 5.7 percent in 2010, and will continue to fall to 4% by 2013. In the last 10 years The South African Rand has lost marketing bureau Eindhoven around half its value in comparison to the top world currencies. In 2004, the Rand got much stronger again but lost in 2006, 2007 and sharply in 2008, as stated by southafrica-travel.net. Presently 1.01 ZAR (Rand) equals 0.129167 US Dollar (x-rates.com). Best Industry Segments Based on statistics from southafrica-travel.net, South Africa produces one fifth of the entire production of the African continent. The economy is diverse and the country is capable of producing an array of items for both investment and consumer use. South Africa has rich mineral resources. It is the world's largest producer and exporter of platinum, gold, as well as chromium. They also export a significant amount of coal. A second major export is diamonds. The CIA Factbook includes automotive assembly, metalworking machinery, textiles iron and steel food products, chemicals, fertilizers as well as commercial ship repair as additional exports. Over the last few years, America's economic dependency on the export of basic materials specifically on gold, has lessened. South Africa has extensive business connections around the world with imports from Germany (10.9 percent), China (10%), Spain (8.2%), (US 7.2%), (Japan 6.1%), UK (4.5%), in addition to Saudi Arabia (4.2%) according to the US Department of State. Concerning exports, the country exports to international partners: US (11.9%), Japan (11.1%), Germany (8%), UK (7.7%), China (6.6%) and the Netherlands (4.5 percent). Regulatory and tariff landscape Post-apartheid South Africa has significantly reduced the export subsidies and tariffs. Statistics from the Heritage Foundation show its weighted average tariff rate was 5.1 percent in the year 2006. The tariff rate that is weighted to imports reduced from more than 20 percent in 1994 to just 7% in 2008. (US Department of State). The safety scheme for electrical goods is managed through the South African Bureau of Standards (SABS) on behalf of the South African government. The certification internet marketing eindhoven mark is not required for equipment that is certified. It is the SABS has also been authorized to grant EMC certificates for ICT products through the Independent Communications Authority South Africa (ICSCA). Online Marketing The Internet is expanding in South Africa, which is one of the most technologically-resourced countries on the African continent. The number of Internet users from South Africa for year-end 2008 are estimated to be 4,590,000 with 10.5 percent penetration according to South African leading technology research organization World Wide Worx. Growth in the number of users has reached 91.3 percent between 2000 and the year 2008. The internet population is expected to increase in the next five years, just as it did during the 15 years since the internet became commercially accessible in the country. On-line Language Preferences Afrikaans, English, isiNdebele, isiXhosa, isiZulu, Sepedi, Sesotho, Setswana, siSwati, Tshivenda, and Xitsonga are the official languages of South Africa. According to the 2001 National Census, the three most commonly spoken first home spoken languages include Zulu (23.8 percent), Xhosa (17.6%) and Afrikaans (13.3 percent). English is by far the most frequently spoken one in both commercial and official public life. It is recognized as the language for science and commerce. however, it's the fifth most-spoken home language which was only spoken by 8.2% of South Africans at home in 2001 (Southafrica.info). Search Engine Profil The top search engine was, and it's nothing to be surprised, Google. Media Vision reports that Google's market share has not fallen to below 90% since the month of August of last year. Yahoo! has never surpassed the 5% market share in the same time. As of now, Google owns 90.31% of the market for searches, while Yahoo! just 1.58 percent. MSN is the second-largest search engine, with 5.22% (or 5.22%) of market. Summary South Africa, coined the Rainbow Nation because of its number of inhabitants (48 million) with different cultures, backgrounds, and beliefs, has a large quantity of natural resources and has well-developed legal, financial communications transportation, energy, and other sectors, as well as an exchange that is 17th largest globally (the Johannesburg JSE Securities Exchange). It serves as an intermediary for other African countries to distribute of goods to major urban centers across the region. Unfortunately, its financial system is built on a formal economic system that dominates the African continent and an informal one that represents poverty. Based on this examination of the potential of the market, Global eMarketer ranks South Africa as the second-tier market in which to conduct an online advertising campaign.

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