The Mobile Revolution: What’s Next for Businesses

There is no question that the era of mobile has arrived – by June 2014, there were about 329 million unique mobile subscribers in Sub Saharan Africa, equivalent to a penetration rate of 38%. The 2014  Mobile Economy report by GSMA (Groupe Speciale Mobile Association) estimates that the number of unique mobile subscribers in Sub-Saharan Africa will pass the half billion mark in 2020 as mobile services become increasingly affordable and accessible to millions of currently unconnected citizens across the region. But, what exactly does this mean for Nigerian businesses and how can entrepreneurs and business managers utilize the mobile phone to grow their business?

How are your customers using their phones?

Smartphones are becoming more affordable and accessible. With increasing competition within Nigeria’s broadband sector, the landing of more undersea cables and the passage of more public-focused policies, connectivity prices will be drastically reduced in the near future. Many mobile network operators across the country have continued to announce reductions in data service costs, making mobile web usage commonplace for Nigerian consumers.  As a result, mobiles are being used for more than just SMS and voice. Consumers are using their devices for searching, social networking, mobile banking and, not as common but slowly increasing, mobile shopping.

Mobile strategies

According to a recent Consumer Barometer study by Google, about 76% of online users in Nigeria use their smartphones to search for information about local businesses, and the reality is we can expect even more growth in these numbers in the not too distant future. The mobile opportunity is likely to be even more widespread than previously estimated as mobile usage in Nigeria and Africa continues to go beyond traditional means. Enter the true ‘arrival’ of mobile advertising – with billions of Internet ads shown every month in Africa, it is quickly becoming important for businesses across the continent to take advantage of the capabilities of the mobile phone.

African online companies like Konga have long recognized that the mobile space is unique and have, consequently, innovated specifically for mobile. Businesses must recognize the importance of mobile strategies, including the need to create user-friendly mobile sites.  It is also imperative that businesses understand the fundamentals of the mobile search terms that consumers will use when searching for a particular product.

Businesses can also explore the unique characteristics of mobile by providing users with richer media experiences such as animated ads, video ads (increasing in popularity across Africa) and click-throughs on social networks. Online video platforms like YouTube mobile are also providing more opportunities for the mobile savvy advertiser.

The next milestone for mobile is to follow trends in ‘local content’, something sure to deliver innovative opportunities for businesses. Online mapping tools like Google Maps provide an opportunity for business owners to list their companies for free so consumers in the area can find them. In addition, African developers are encouraged to create locally relevant mobile apps for Android, a mobile platform with more than 1.4 billion active users worldwide – a growing number of these activations coming from Nigeria and other markets across Africa.

Nigeria is definitely one of the first post-PC countries, emphasizing the importance of the mobile as a way to connect to the internet. Across Africa, we are seeing a higher percentage of people using mobile handsets than PCs to access the Internet, listen to music, play games, download content and engage with social networks. This trend is thought to be similar in other parts of the continent. There has never been a more significant time for mobile in Nigeria and Africa and these exciting developments are set to continue for some time to come.