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Gartner says Digital Marketing Budgets Will Increase by 8 Percent in 2015

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Marketers are investing in the customer experience to drive business advantage and profitable revenue growth, according to a survey of marketing executives by Gartner, Inc.

The survey found that marketing budgets remained healthy in 2014, with, on average, companies spending 10.2 percent of their annual 2014 revenue on overall marketing activities, with 50 percent of companies planning an increase in 2015.

Digital marketing spending averaged one-quarter of the marketing budget in 2014. The survey found that of the 51 percent of companies who plan to increase their digital marketing budget in 2015, the average increase will be 17 percent.

These findings are included in Gartner’s Digital Marketing Spending report that is based on a survey of 315 individuals located in the U.S., Canada and the U.K. Respondents represent organizations with more than $500 million in annual revenue across six industries: financial services, high-tech, manufacturing, media, retail and transportation, and hospitality. The survey took place in July and August 2014 to gain insight into marketing and digital marketing spending priorities and plans for the future.

“The amount of the marketing expense budget spent on customer experience in 2014 is remarkably consistent across all key survey demographics, averaging 18 percent. The survey also found that the highest marketing technology investment in 2014 is for customer experience. Customer experience is also considered by many companies to be the top innovation project, just edging out product innovation,” said Jake Sorofman, research director at Gartner.  

Not only are marketing budgets remaining healthy, they are forecast to grow in 2015, with half of the companies surveyed planning an increase in 2015.

The larger the company, the higher the marketing expense budget as a percentage of revenue — those with revenue of $5 billion or more reported 11 percent, compared with 9.2 percent for those with revenue between $500 million and $1 billion.

Marketing budgets as a percentage of revenue varied widely, with 46 percent spending less than 9 percent of revenue, 24 percent spending between 9 percent and 13 percent of revenue, and 30 percent spending more than 13 percent of revenue.

The 50 percent of companies planning an increase report their average 2015 increase will be 10.4 percent. Of those, the ones that report outperforming competitors said their planned 2015 increase will be 13.6 percent.

“The line between digital and traditional marketing continues to blur,” said Laura McLellan, research vice president at Gartner.

“For marketers in 2014, it’s less about digital marketing than marketing in a digital world. Hence, marketers manage a much more balanced and integrated marketing mix than in previous years, which were characterized by online and offline silos. The resulting digital experience moves customers toward a more self-service buying model, allowing reductions in sales budgets that were designed around older, physical models.”

Sixty-eight percent of respondents said that their company had a separate digital marketing budget. However, it’s difficult to gauge just how much companies are spending on digital marketing because the treatment of budgets varies by company, with some having a digital marketing budget in total (32 percent of respondents), others in detail (36 percent), and yet others that have incorporated digital marketing into each function of the marketing budget (23 percent) or none of the above (eight percent).

As in prior years, the survey revealed that when it comes to allocation of the digital marketing budget by activity, digital advertising takes the top spot. However, there appears to be less difference between this and other activities this year compared with last year, as marketers hedge their bets.

Expenditures for digital advertising will grow in 2015, as brands, ad agencies and publishers invest in ways to deliver more-relevant advertising to people.

Fueling this trend is the use of programmatic media, which allows marketers to target the audience they want and automate bidding rules for ads based on the business value they deliver.

Nevertheless, the survey suggested that in 2015, digital advertising will share its top ranking with mobile marketing.

With digital marketing spending on the rise, respondents were also asked where additional funding was coming from:

“Gartner’s 2014 CEO Survey found that digital marketing was the No. 1-ranked CEO priority for technology-enabled business capability for investment during the next five years,” said Yvonne Genovese, managing vice president at Gartner. “It therefore comes as a little surprise that the digital marketing spending survey found that over 60 percent of companies that justified an addition to the marketing budget for digital marketing obtained incremental funding from elsewhere in the organization.”

 


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E-Business

Google Increases Price of Google One Subscription in Nigeria

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Google has increased the price of its Google One subscription in Nigeria.

Google Increases Price of Google One Subscription in Nigeria

The tech giant, in a note to its customers, said, “Price will automatically increase to N1,900/month on 28 Mar 2025 for your Google One subscription. Cancel at any time in Google Play.”

The old price was N1,200. Google One, a cloud storage service offered by Google LLC, provides users with a centralised platform to manage their storage across Google Drive, Gmail, and Google Photos.

It added that subscribers who do not cancel their subscription will be charged automatically on the payment method they provided.


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We Are Bringing the Change in Technology Distribution – Chioma Ekeh, TD Africa MD

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Mrs. Chioma Ekeh, CEO of TD Africa
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In the world of technology and entrepreneurship, few names resonate as powerfully as Mrs. Chioma Ekeh, CEO of TD Africa, Africa’s leading technology distribution powerhouse.

We Are Bringing the Change Technology Distribution – Chioma Ekeh, TD Africa MD

Mrs. Chioma Ekeh, CEO of TD Africa

A media-reclusive entrepreneur and quiet achiever, she has made a name for herself not with loud proclamations but through consistent actions that have shaped the trajectory of the continent’s digital economy.

She has steered the company to unprecedented heights, forging strategic partnerships with global giants such as HP, Microsoft, Apple, Starlink, IBM, Dell Technologies, Ring (by Amazon), Cisco, Lenovo, APC by Schneider Electric, Samsung, Bosch, Philips, Logitech, and Vivo.

These collaborations have not only strengthened TD Africa’s position as a market leader but have also contributed to the growth of Africa’s tech ecosystem.

At the recently held Accra Synergy Summit, a high-profile event held in Ghana that brought together top strategic partners and Original Equipment Manufacturers (OEMs), Mrs Ekeh made a bold declaration: “We are no longer waiting for change — we are driving it. We are no longer spectators in the digital revolution — we are architects, engineers, and visionaries shaping the future.” This statement, emblematic of her visionary leadership, underscores her commitment to driving Africa’s tech renaissance.

Ekeh’s words are not mere rhetoric; they are backed by tangible achievements and a deep understanding of Africa’s digital potential. The data speaks for itself.

According to the International Finance Corporation (IFC), Africa’s digital economy is on track to reach $180 billion this year, with projections indicating it will soar to an astonishing $712 billion by 2050.

This growth is not just an increase in numbers — it signifies a paradigm shift in how Africa engages with technology and innovation.

With over 570 million internet users today, Africa is undergoing an unprecedented digital awakening, a number expected to double by 2030 according to the World Bank.

From financial inclusion to business automation, Africa is embracing the digital age at an accelerated pace, with 70% of global mobile money transactions already occurring in sub-Saharan Africa.

This widespread adoption is a testament to the ingenuity and resilience of African entrepreneurs and businesses.

The continent’s tech ecosystem is also attracting significant global attention. In 2022 alone, African tech startups secured over $6.5 billion in investments, a clear testament to the world’s belief in Africa’s digital future.

Ekeh’s message is clear: Africa’s future is bright but requires collective effort.

Rapid transformation does not happen in a vacuum. It is built on strategic collaborations and forward-thinking leadership.

According to Ekeh, “This renaissance is not happening in isolation. It is built on the foundation of strong partnerships. It is fuelled by collaboration — between businesses, governments, and technology enablers like TD Africa. Each of us has a role to play in ensuring that Africa doesn’t just adopt technology but creates, innovates, and leads.”

Her words serve as a rallying cry for businesses, governments, and individuals to strengthen partnerships, increase investments, and take bold steps toward excellence. “Africa is no longer just a consumer of technology. Africa is a builder. Africa is no longer following global trends. Africa is setting them. Africa is no longer waiting for the future. Africa is the future,” she concluded.

Chioma Ekeh’s leadership and vision are a testament to what can be achieved when passion, innovation, and collaboration come together.

As Africa continues its journey toward a tech-driven future, her words and actions remind us that the power to shape tomorrow lies in our hands today.

TD Africa has remained at the forefront of Africa’s tech revolution as the market leader in technology distribution.

Under Ekeh’s leadership, the company has not only expanded its portfolio of global partners but has also facilitated the seamless deployment of innovative tech solutions across various sectors.

By empowering businesses with cutting-edge technology, TD Africa is laying the groundwork for an Africa that does not just consume technology but pioneers it.

 

 

 

 

 

 

 

 

 

 


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Visa Eyes $1.3 Trillion Digital Opportunity in Africa

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Africa’s digital payments landscape holds immense potential, with $1.3 trillion in cash transactions across the continent yet to be digitized.

This is according to Visa, which provided insights on the digital payments landscape in Sub-Saharan Africa during the Visa Security CEMEA Summit, held in Cape Town on Tuesday.

Aida Diarra, senior vice president and head of Sub-Saharan Africa at Visa, said that cash-based economic activities present a significant opportunity for merchants and consumers to digitise their operations, creating a multiplier effect to drive financial inclusion and economic development.

Diarra attributes Africa’s continued use of cash to various factors, primarily the restricted availability of digital payments, which impacts over 200 million people across the continent.

The primary factor holding back adoption is access, she said. “Technology is now offering us the possibility to better drive the access. We can now embed a card credential into a wallet to make a payment from your phone.”

She added that the recent increase in reach of such solutions has led to an acceleration of digitised payments. “There is a 20% growth, year-on-year, of digital payments and it’s driven by that (improved reach).

In addition to improving access, there’s a need to improve acceptance of digital payments too.

“In order to pay, you need to have merchants that accept payments, and here again, technology is a phenomenal driver; look at the merchant’s ability to use their phone as an acceptance device.”

According to Visa, only eight million merchants on the continent accept digital payments, with 44 million still not heeding the call to transition to digital payments.

Diarra said Africa accounts for 70% of mobile money globally and players such as Fintechs, mobile network operators, micro-lenders, and e-commerce players are pushing the continent’s mobile first agenda.

When it comes to alternative digital payments solutions like cryptocurrency, she says the big African markets will have the first mover advantage because of the landscape they operate on, with markets like South Africa, Kenya, and Nigeria already leading the pack in cryptocurrency usage, not only in Africa, but globally. She optimistically notes that because of the opportunity technology presents, other markets have room to leapfrog.

She explains: “A few years back, looking at landlines and the numbers of households that did not have access, and then with mobile telephony coming, we went past that and created further access.

“The big economies will probably lead the (cryptocurrency) charge. With this, cost comes down, technology becomes nimbler, and adoption would be accelerating in other markets.”

Because of the DNA of the ecosystem in some markets and challenges to access hard currency, crypto is leveraged in these markets to issue and make payments, Diarra said.

“This is something we need to continue to monitor, and that is likely to continue to grow. The good news is that regulators are beginning to appreciate this is a trend that’s here to stay, and that there needs to be proper rules and frameworks to make sure that they fully have visibility and continue to enable the use of such capabilities,” she concludes.


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