Not so Dumb Pipes…
The UN’s International Telecommunications Union conference is underway in Dubai and several Arab and European telecom providers have suggested imposing fees on content providers such as Google and Facebook for using their networks. This will result in higher internet costs.
To some extent this is understandable. In the Middle East, growth rates of new internet users and Facebook users are extremely high. All these people consuming all this data but the telco can only charge per MB for data. Even with the world’s highest 4G cost from du at $272 (landline at 100Mbps) there is still a cap on how much you can really charge customers.
Additionally, it may make sense for some users. Higher internet costs would inevitably be passed onto the consumer, and in return for paying more the user would expect ad free content. Only the amount that users would pay would never equal the amount that Google makes in advertising or Facebook.
Telco’s can start monetizing their high speed networks by working with advertisers. Triple play telco’s have the most to gain here. They know what I watch, what I consume on the internet and where I go via my mobile phone.
The internet is a fabulous thing but it might get changed before we have the chance to use it right here. If only we got local businesses to optimize for Google more. If only our creative advertising agencies weren’t tied up with creating spammy Facebook content for cling film brands and window cleaner. If only we stopped focusing on the short term and didn’t say, well I’m going to charge this much because this is what the market can handle, and we looked a bit ahead to the future.
Rethinking your target market in the UAE
Using digital channels to appeal to more profitable consumers
In this post I look at the perception that focusing only on certain demographics will result in profitability for firms operating in the UAE. Brands that continue to put 80 percent of their efforts in reaching 30 percent of the population are missing out on growth opportunities.
I have also tried to show that the rapidly expanding “middle class” is where the majority of consumption falls, particularly with regards to volume. This middle class expansion can be seen most aggressively in the Asian states, particularly India.
Finally I have suggested that; because this demographic demonstrates maturity with online tools, brands using digital channels can reach a greater part of the population and appeal to more profitable consumers.
The Unbearable Elusiveness of Data
In my last post I talked about the large differences in figures surrounding the research on Ecommerce in the region. I also pointed out that the problem is further compounded by the way the media reports on research. Euromonitor were very quick to get in touch with me after that post, which is very commendable, the delay in posting a follow up is purely due to myself.
Dictatorship can return…..
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