Emerging power in emerging markets – are you ready?
Despite the negative stigma around the term “emerging markets”, a whole lot is happening that will undoubtedly turn the tables on the so-called developed markets – if they don’t continue emerging themselves. According to Zenith OptiMedia, 60% of all global ad expenditure will come from emerging markets as early as 2014. We asked Worldwide Partners Inc. agencies in China, Egypt and Brazil to tell us about the opportunities and challenges they see in advertising and marketing communications in their specific emerging markets.
China – Opportunities
China is one of the fastest growing economies of 7.8% in 2012 and makes up the biggest online market in terms of netizens (538 million in 2012). It boasts the biggest luxury market in the world with 27% of global luxury market volume in 2012 and 34% by 2015.
Consumer confidence is high and domestic consumption is strong. Global brands continue to move their marketing resources to China, so China has an opportunity to help them develop a localized proposition and communicate messages that fit China’s market needs.
Local brands are maturing and look for agencies that can provide international advertising industry practices and strong expertise in marketing consultancy.
China – Challenges
China is not a homogenous market. Foreign brands coming into China need to spend time and resources in order to understand the Chinese culture and traditions, as well as the regional differences and consumer needs that vary by city size.
Plus, advertisers need to understand Chinese advertising regulations and media censorship issues. Media channels are controlled, and consumers do not have access to the same media that other markets may take for granted.
Egypt – Opportunities
For agencies, having clients in stable food and beverage industries is key. These are the markets that are not as easily affected by politics, economy or any other factors that disturb investment, because, as they say, “people will always eat and drink”.
Another opportunity for Egyptian agencies is to get out of “traditional” media and to expand into new media, digital and brand activation projects.
Egypt – Challenges
Due to the political and economical status of Egypt, investors are not encouraged to start new businesses or projects until the situation clears or gets more stable. So advertising agencies unfortunately do not get business opportunities as frequently as they used to.
This is a huge challenge at the moment for all of the local Egyptian ad agencies and they need to get full support from their respective international networks on any coming pitch, as chances of getting new business are very hard these days.
Brazil – Opportunities
Due to the upcoming World Cup in 2014 and the Olympics in 2016, the government has a goal to rise the positive image of all Brazilian brands and is eagerly promoting Brazil worldwide.
The factors the country feels will lead to an increase in exports are quality, technology, innovation and sustainability. Therefore, Brazil is being presented strongly as a source of opportunities for those seeking partnerships, sustainable solutions and high growth.
These factors are important to the economy and international politics to create a positive image of a country. In all, Brazilian economic prospects are very optimistic for the upcoming years, especially when it comes to the infrastructure, tourism, transport and the communications industries.
Brazil – Challenges
Opportunities can come from anywhere in the world, especially during these global mega events. Therefore, the challenge is to gain sufficient visibility and relevance for brands.
The brands must be prepared to invest money properly in communications. They need to fully understand the type of message, the medium used and the public being served.
An agility in taking advantage of opportunities that arise, especially when it comes to the use of digital activities and social networks, will help those brands move ahead.
Emerging markets are ones today that are growing sustainably. Estimates indicate a constant growth in ad spend by these emerging nations.
We should not underestimate the “slow” adoption of international advertising styles and media usage by the emerging markets. Rather, for any of us outside the emerging markets, we should appreciate how innovative, creative and achievement oriented these markets have indeed become in a very short time. These are the creative forces that will help our world to emerge into better business thinkers in the future.