Telecom
The Online Retail Explosion Represents a Massive Opportunity for Advertisers
By Tintin Imevbore, Regional West Africa Manager, Ad Dynamo by Aleph
Over the past few years, spurred by the COVID-19 pandemic and its associated lockdowns, online retail has witnessed an African explosion. Faced with stay-at-home orders, many people started shopping online for the first time, while experienced shoppers increased their purchases. Those behaviours have largely stuck too.
Tintin Imevbore
Take Nigeria, for example. In 2021, its e-commerce market grew by 30%,and in the years leading up to 2027, e-commerce revenues are expected to grow 11.31% annually. By that point, the sector (currently worth US$7.63 billion) is expected to be worth US$11.71 billion.
It’s clear then that anyone interested in growing their retail presence should have some form of e-commerce offering (even if it’s just having a presence on a third-party marketplace). But growth in the sector doesn’t just hold promise for anyone selling products or services online. It also represents a significant opportunity for digital advertisers.
Be where your customers are
One of the biggest benefits that online retail offers advertisers is visibility. A large platform like Jumia, for example, can see more than 10 million unique visitors a day. That’s a lot of people. Beyond sheer volume though, they’re also people who are looking to spend money. Even if they’re just browsing today, chances are they’re on those sites looking to buy something at some point.
It’s also worth pointing out that people browsing online stores spend much more time on them than on other websites. On average, people spend between 45 and 54 seconds on a website. By contrast, people can spend more than seven minutes at a time on the world’s biggest e-commerce sites.
That means that if you’re advertising on the right e-commerce platforms, your product or service will be seen by a large number of people, and those people will also be exposed to it in a setting where they are not restricted to time since online shopping is usually a leisure-based activity, meaning that people are going to do it after work hours or on the weekend. The fact that most big online retailers break their sites up into sections also makes it easier for potential customers to see advertising that’s most relevant to them.
Given that one of the key tenets of online advertising is reaching the right people with the right message at the right time, there’s clearly a strong case to be made for advertising on e-commerce stores then.
Partner with experts
It is worth noting, of course, that advertising isn’t the primary revenue source for any e-commerce platform (although Jumia’s advertising offering recently overtook fulfilment as a revenue source). That means they’re less likely to have the same seamless, plug-and-play advertising solutions that many of the biggest social media platforms have.
As a result, it’s even more critical to work with media representation partners who can ensure your product or service is seen as much as possible by your target audience. The right media representation partner should also offer transparent pricing and be able to help with brand strategy.
They will also ensure that any advertising you do on an e-commerce platform is tailored to that specific platform while complementing your advertising efforts on other channels. You don’t have to be a major advertiser to enjoy those benefits either. A good partner will work with the rates you can afford and grow with you as you expand.
Embrace consumer shifts
Ultimately, if businesses are to be successful, they need to understand and embrace shifts in consumer behaviour. And there are few shifts as significant and as fast as the move to online shopping since the pandemic. It’s also crucial for businesses to follow those shifts holistically.
This means not just having an online retail presence but also utilising online retailers as advertising platforms. Finally, it’s critical for businesses to realise they don’t have to take that journey alone and can potentially see much greater degrees of success by engaging with the right partners.
Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have ordered Deposit Money Banks and Mobile Network Operators to settle the long-standing N250bn USSD debt dispute before January 2, 2025.
The CBN and NCC also directed banks to pay the pre-Application Programming Interfaces (API) debt before July 2, 2025.
They also ordered that post-API debts be settled before December 31, 2024.
The directive was issued in a joint cirular titled, “2nd Joint Circular of the Central Bank of Nigeria and the Nigerian Communications Commission on the Resolution of the USSD Debt Issue Between Deposit Money Banks and Mobile Network Operators.”
The circular dated December 20, 2024, was signed by Oladimeji Taiwo, acting director of the Payments System Management Department, CBN, and Chizua Whyte, head of Legal and Regulatory Services, NCC.
The regulators said, “In view of the foregoing, the CBN and the NCC hereby direct DMBs and MNOs as follows: 1. That 60 per cent of all pre-API invoices must be paid as full and final settlement.
“Payment plans (lump sum or installments) must be agreed upon between a concerned DMB and MNO by January 2, 2025. Installments must be based on equal monthly payments, with full payment due by July 2, 2025.
“DMBs must pay 85 per cent of all outstanding invoices issued after the implementation of APIs (i.e., February 2022) by December 31, 2024.
“Similarly, 85 per cent of future invoices must be liquidated within one month of service.”
According to the regulators, the transition to end-user billing will be activated only for DMBs and MNOs that comply with the payment conditions cobtained in the circular.
CBN and the NCC said they would provide further guidance on public enlightenment initiatives related to the transition.
The regulators also directed MNOs to implement the “10-seconds rule” for USSD invoicing.
This implies that any session lasting less than ten seconds will not be billable.
The regulators added, “Failure to comply with the terms outlined in this directive will attract necessary sanctions, ensuring that both DMBs and MNOs uphold their obligations.”
Nigerian Communications Commission (NCC) has unveiled a draft regulatory framework aimed at addressing fraud, spam, and other challenges in the Application-to-Person messaging sector.
The telecom regulator made this announcement in a statement.
The proposed framework, which was introduced during a virtual Stakeholders’ Forum, is said to be a key step towards enhancing the sector’s integrity and ensuring a fair, transparent environment for all parties involved.
The draft framework, presented by Aminu Maida, executive vice chairman, NCC, who was represented by Chizua Whyte, NCC’s acting head of legal and regulatory services, seeks to regulate the A2P messaging space.
The A2P messaging, used for notifications such as bank alerts, promotional campaigns, and government updates, has become a vital communication tool in Nigeria.
However, the sector faces significant challenges, including consumer protection concerns, fraud, and data privacy issues, as well as an unequal distribution of value within the ecosystem.
“The international A2P messaging space in Nigeria faces gaps that have led to issues such as fraud, spam, and data privacy concerns. These challenges threaten the sustainable growth of this communication tool,” the NCC said.
The proposed framework aims to address these challenges by protecting consumers, promoting fair competition, and holding service providers accountable.
“This forum marks a pivotal step towards addressing these challenges. We are here to engage with all stakeholders—operators, aggregators, businesses, service providers, and consumers—to refine the framework and ensure it meets the needs of the entire ecosystem.”
The NCC stressed the importance of inclusivity and collaboration in creating an effective regulatory environment.
Airtel Africa, a provider of telecommunications and mobile money services, has announced the commencement of a second share buyback programme that will return up to $100m to shareholders.
The share buyback reflects the Board’s confidence in the Company’s continued growth potential, the strength of its balance sheet, and the consistent cash accretion at the holding company level.
Furthermore, the buyback remains in line with the Company’s existing capital allocation policy.
According to the company, the programme will be executed in accordance with applicable securities laws and regulations.
The share buy-back programme is expected to be phased over two tranches, with the first tranche commencing today and anticipated to end on or before 24 April 2025.
The first tranche will amount to a maximum of $50m.
The Company has entered into an agreement with Barclays Capital Securities Limited (Barclays) to conduct the first tranche of the buy-back and carry out on-market purchases of its ordinary shares with the Company subsequently purchasing its ordinary shares from Barclays.
Under this agreement, Barclays will act as riskless principal and will make decisions independently of the Company.
The sole purpose of the buy-back programme is to reduce the capital of the Company.
It noted that as such, all shares purchased under the buy-back programme will be cancelled.
In a statement signed by Simon O’Hara, group company secretary, the company noted that the share repurchase process will adhere to pre-set parameters agreed upon with Barclays Capital Securities Limited (Barclays), the executing partner for the first tranche of the buyback programme.
This partnership ensures that purchases are conducted transparently and in compliance with all regulatory requirements.
The buyback will be executed under the authority granted by shareholders during the Annual General Meeting held on July 3, 2024, which permits the repurchase of up to 374,141,187 ordinary shares.
Following the completion of a prior buyback programme, the remaining authority allows for the acquisition of up to 328,842,995 shares.
Additionally, Airtel Africa confirmed its commitment to adhering to the Financial Conduct Authority’s UK Listing Rules 9.6 and the provisions of the Market Abuse Regulation (EU) No. 596/2014, as incorporated into UK domestic law.
The company also clarified that share purchases may occur during closed periods, consistent with these regulations and the agreed parameters.
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