04/02/2021
It feels as if you cannot visit any website on the internet where you do not hear the narrative about becoming a part of the Gig Economy or how having a digital footprint benefits your business.
The narrative is true though. More online sales were done last year than the combined sales of the preceding five years. Nike made its five-year retail sales target in one years’ worth of online sales in 2020. This is powerful stuff.
What happens in an internet minute?
The Fourth Industrial Revolution has seen an explosion in the popularity of social media.
In a 2020 internet minute, there were 1.3 million Facebook logins, 194 444 tweets and 190 million emails.
According to statistics (which are correct as of 19 October 2020) LinkedIn has an estimated 760 million users. Of these, 260 million are active monthly users and 40% of these 260 million (104 million) users access their account daily.
The relevance to South Africa
These are global statistics. However, the growth of social media in South Africa has been significant.
South Africa’s social media user statistics are important. Your company has 23 million opportunities to make an impact on an existing client base and possibly attract new clients.
If we look at the relevance of LinkedIn in South Africa, we see that over 7 million of LinkedIn’s user base are South African. This is 7 million opportunities to position your company as a thought leader and 7 million opportunities to build future business connections.
How do you fit into the tech narrative?
As you can see, the Fourth Industrial Revolution has created an explosion in the popularity of social media, it has provided business owners an opportunity to talk directly to their clients through targeted messaging. The days of expensive advertising and media campaigns that provide limited results are over.
Social Media also provides you with a captive audience, allowing you to target your message and get exactly what you want out of a campaign.
Decisions are made differently.
You have been in business for a while, and nobody needs to tell you that your client base is getting younger.
But what does this mean? You are now dealing with digital natives, a group of consumers who grew up connected to the internet. Digital natives have a wealth of information at their fingertips and often make business decisions following extensive research on the internet.
If you do not have a strong online presence, which includes social media, many younger clients may not give your company a second look. Modern consumers are as concerned with how you sell as they are with the product.
Value add
2020 was a turning point in terms of social media. It was the year that more than three quarters of the world's population were connected to the internet through a smart device. It was also the year that more than half of the world's population had a social media account.
In India, there is a new person connected to the internet through a smart device every minute. Asa Griggs Candler, Founder of the Coca-Cola Company, once said that brands that are spoken about are consumed the most. In 1980, sales of Coke almost doubled after an advertisement of Santa Claus drinking a Coke was aired on television.
We are living in a transition period. The digital economy is on the precipice of massive growth but is weathering a tough economic climate. Companies who position themselves in this area now will reap the benefits in years to come.
