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In FocusMXit as a mobile media advertising platform


Created: 18 August 2008
By Leigh Andrews

MXit was judged the coolest website and social networking service facility in the recent Sunday Times Generation NeXt survey, conducted by HDI Youth Marketeers in partnership with the Sunday Times, and supported by Monash South Africa. There have been a few horror stories in the media about teens running away to meet older men they’ve met on MXit, but the platform has clear online safety rules posted on the website – for both the young users and their parents to stick to. MXit is overwhelmingly popular among the youth market, and a key player in the mobile media sector. Naspers acquired a 30% stake in MXit in October 2006. It is therefore a prime advertising platform for reaching the lucrative South African youth market which has access to its own money, and freely exerts influence over how its parents spend their money.

What is MXit?
MXit started out in 2005 as a free mobile instant messenger program for mobile phones which provides access to virtual communities. MXit has since released a PC Beta version for users to ‘give their thumbs a break’. This PC version includes access to information, the gallery, Joe Banker, and Tradepost. This means that users can chat to other MXit users on their mobile phones or PCs anywhere in the world via the internet through GPRS or 3G, rather than by standard sms technology. Users can chat with up to 1 000 characters at a time, at a fraction of the cost of a standard sms. In addition to basic chat services, MXit offers users the chance to meet people, play games and customise their phones. The latest MXit version V5.6.3 allows users to tab control for chat screens, make calls using MXit, and includes more text markups and a faster start up and log in.

Trading on Tradepost
MXit is a very effective marketing tool as it's an affordable, instant means of communication. Users can embark on ‘business transactions’ with Tradepost, which is effectively a menu or place to trade by browsing around for anything that takes your fancy. The Trader keeps in regular contact with the user, providing information about the latest goodies and competitions available on MXit. Tradepost provides a list of available services, ranging from news reviews (both local and international); to movie reviews and times; horoscopes and more. Services are paid for in moola, which is official MXit virtual currency- 1 moola is equivalent to 1 cent. Tradepost offers users emoticards, skinz (themes), MXit games and roleplaying games, Trivit (a general knowledge test), chat rooms and grown up chatrooms, geographical, topical, flirt, teen and celebrity chat zones (Mandoza, Danny K, Colin Moss, Freshly Ground, Karen Zoid and Lee-Ann Liebenberg have already featured), as well as a dating game, weather updates and career tips.

Advertising on MXit
Moneyweb quotes Paul Stemmet, MXit's general manager as saying MXit has roughly 7.5 million users, of which 6.5 million are in South Africa. The 18-25 age bracket hold the lions’ share (60%) of the MXit user market. The audience is made up of people from all age and race groups, and from all LSM brackets. This makes for a potentially lucrative market that can be targeted based on their individual profiles. MXit makes youth-related information and services available to millions of people. Part of the effectiveness and likeability of MXit’s advertising is that it's all entirely opt-in or permission marketing, meaning users are not spammed with unnecessary, irrelevant advertising. If MXit users want your information and services, you become part of the MXit world, as the users then choose to add you as a personal contact on MXit. This is a clear example of social media marketing, as MXit users can become part of the advertiser’s world, and interact directly with the marketer.

Advertisers are listed under MXit Mix, where their information is available to the passing trade. This includes straight text info; links to download content directly onto mobile phones; feedback forms where marketers ask questions for users to respond to; and cellphone advertising skinz - a fantastic branding opportunity. Splash Screen Advertising helps spread the word once an advertiser’s link is live. A splash ad is a static graphic that displays for five seconds when logging into MXit. In November 2007, the inventory was in the region of six million views per day. Selection criteria, including gender and age, can be used to target specific market segments. Users can only receive one splash ad at a time- similar to radio or TV commercials. MXit Skinz function as personalised themes for MXit users. They can also be designed based on specific graphics, based on a brand’s logo or specific promotional campaign, and should be relevant and current. Idols and Shrek skinz have proven highly popular. The skinz are listed on Tradepost for sale to users, which enhances the advertiser’s corporate identity and recognition. Advertisers can also sponsor Tradepost Treasure competitions, where MXit sends out a Tradepost message every day for up to seven days, where the advertiser is acknowledged as the sponsor of the competition.

Using the database of users who subscribe to a particular service or chat room, companies can embark on targeted two-way communication by sending out questionnaires to specific people, and getting feedback from them. As an added advertising opportunity, Your Zone allows advertisers to host a chat zone with 50 or 100 rooms. The chat rooms your chat zone comprises can be named to suit a particular brand, product, or campaign. The creator can also create their own virtual commands and enter any chat room (even if it's full) as they have ‘moderator’ status for the rooms they create.

Advertisers on MXit have enjoyed huge success through having space to create their own branded contact, meaning they can encourage thousands of people to interact with their brand, out of choice.

The following well-known South African brands have links on MXit:
*Ster-Kinekor has a MXit contact which provides information on movies, including where and when they are showing.
*Peugeot used MXit as part of its launch campaign for the Peugeot 107. This was a supplement to its web campaign, which included a competition for the best decal design for the car. Elements from the five winning designs were used to create limited edition skinz.
*The iDrive contact on MXit is a resource for finding trusted and licensed driving schools and driving instructors. One navigates through the menus to find an instructor closest to where one lives, then enters one’s mobile phone number or email address to receive the instructor’s contact details.
*The Quiksilver/Roxy contact keeps you posted on the company’s countrywide events.
*The TVPlus contact offers the latest TV and celebrity news, as well as access to daily gossip updates, TV alerts, soapie information, and skinz.
*The Big Concerts MXit contact provides information on all events and artists organised by Big Concerts.
*MOBmix, another contact that can be added from MXit Mix, is packed with downloadable content, ranging from mobcasts (mobile broadcasts) to ring tones, songs and videos.

CASE STUDY: The Engen Endless Summer Campaign
The Engen Endless Summer Campaign ran in December 2007. The campaign targeted 11 to 18 year olds, with the aim of keeping kids busy on the back seat, and getting them to pester their parents to stop at the next Engen convenience store. Splash screen advertising and hosted chat zone features were used. Keywords, found on forecourt posters along all the holiday routes throughout the summer holidays, were entered into the Endless Summer chat zone or mobile site. Each keyword entitled users to a different download, ranging from mobile wallpapers to ringtones and games. The keyword instructions were only mentioned on the MXit site. This spread the viral element of the campaign, as kids knew what the keywords meant, but their parents did not. 10 000 users added the Endless Summer contact on MXit. Over three million messages appeared in the chat zone, and over 12 000 downloads took place over six weeks. Chat room moderators spoke to kids in the chat rooms, motivating more downloads, and secret keywords were given out at certain times. The Engen Endless Summer campaign, conceptualised by At Play, of Saatchi and Saatchi won a Gold Loerie Award for Mixed Digital Media Campaign.

The future
MXit Music broke South African music convention with the first ever launch of an album through a mobile phone earlier this year. MXit Music users can hear the latest hot hits first hand, vote on the songs, and find out what's happening in the lives of their favourite bands. There are now limited edition MXit tee-shirts available on Springleap.com, and one can add MXit applications to their Facebook profile. With the capacity to serve 12m ads a day, an entire MXit clothing range, and MXit TV – to be based solely on consumer generated content – in the pipeline, the marketing possibilities are endless.

Tricky media ownership means we should go back to basics


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By Desi Tzoneva

A superficial look into the growth of online publications (operated by a mere handful of people) points to a change in patterns of media ownership. The long-standing media ownership by a small percentage of the rich elite seems to be changing hands, with individuals taking advantage of the online space to publish news they think is relevant, rather than being dictated to do so from the top. With online today, it is possible for almost anyone to publish anything. And the restrictions imposed by powerful media moguls, are in some cases, diminishing.

Transparency and trying to give the public unfiltered information is a step ahead in this industry – where typically just a handful of individuals have controlled the media empire. What has been important is that it is these guys who can prevent an important story from being run; from showing a certain documentary; for giving copy space or air time to friends, and thereby swaying public opinion to favour what the media owners want.

This is not true media. And it can be problematic. Firstly, commercially-driven mass media is loyal mainly to its sponsors (yes, the advertisers and government rather than public interest); if only a few companies (those representing a minority elite) control the public airwaves, calling them ‘public’ is simply paying lip service. Finally, the absence of healthy, market-based competition often leads to slower innovation and increased prices. Murdoch’s News Corp, for instance, is one of the cases of a media empire attempting to maintain its dominance, which is significanly threatened by not equal media competitors but the spiral of growth online.

The power of the media can’t be overstated. It has the capacity to drive change; shape opinions; expose wars and corruption; but at the same time, it can hide these things, depending on who owns the media company. If this is possible, how then can the media be truly accountable and achieve the high standards it sets for itself?
It’s important to address the issue of what is in the public interest. If the media is controlled by a handful, their interest will infiltrate broadcast/printed content and could not really be said to have a positive impact on public interest. The diversity of opinions would be quite shoddy. But this means that advertisers remain happy - an interesting trade off.

The South African case is not much different. Amandla!Forum says that South African media ownership is currently concentrated in the hands of a few corporations. Four companies - Avusa Publishing; Naspers (Media24); Independent Newspapers; and Caxton - own the bulk of print media. In broadcast, the SABC controls 41.6% of radio and 69.3% of television audiences.

Labeled as “monopoly control [of] our democracy,” many have argued for more state regulation, basically saying that the monopolistic-type ownership stifles competition for smaller entrants, and it is, in fact, better to let the government have a hand in the cookie jar. Over 15 years ago, then Gauteng ANC chairperson, Tokyo Sexwale, called for diversity of media ownership. But how are we to achieve this if entry into the market itself remains difficult? Past legislation; unequally established structures with current impact; and skewed resource distribution are some of the reasons. Not only this, but the levels of foreign media ownership don’t help much in this case, either.

The concept of agenda setting is also very interesting – the media is such a powerful tool and can run the danger of becoming a mouth piece of a ruling party, whether it is political or business. Media bias is another fundamental aspect to this because it has become necessary to ask whether the information we are given has been published just because it sells; because it has a subtle agenda; or if it is, in fact, giving the reader the truth.

In the end, I don’t think the first question should be about regulation or deregulation. We first need to look at whether the media is fulfilling its promises – namely, to inform the public in an accurate, objective way. Subsequent decisions can be made, but the primary consideration is in truly delivering quality news to the population.
Are you for or against media regulation, and why? What are your views on this topic? We’d like to hear from you so post your comments on our blog.

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Facebook launches as advertising platform in South Africa


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By Desi Tzoneva

Wednesday, 3 February saw the launch of Facebook as an advertising platform in South Africa, at The Venue in Melrose Arch. Adrian Hewlett, MD of Habari Media, began by stating that Facebook currently forms the third largest population in the world – it is effectively, the United States of Facebook.”

Hewlett said that while the online industry in South Africa has played the underdog role over the last few years, he is now seeing an important shift. Nielsen’s recent figures of the local online environment generously indicate that there are over eight-million unique users online. Conservative estimates are about 6.5-million users. This is an important opportunity for local advertisers to tap into the social media space. To bring this opportunity to South Africa, Habari Media and Facebook launched the initiative in the country as part of a greater global rollout and strategy.

Next, CEO of social media agency Cerebra, Mike Stopforth, sketched out the landscape of social media in South Africa. While Cerebra began by promoting blogs, Stopforth realised that social media was not about blogs or the technology used. Rather, it is about “the community that sits on top of these platforms… and that community is priceless.”

The problem with social media recently - much hype and buzz has been created around it, many corporates and decision-makers are still unsure of its value. Social media is not easily trackable and translating initiatives into return on investment (ROI) is difficult. Despite these limitations, Stopforth believes that social media works, although in a “roundabout” way.

He divided the social media users in South Africa into three broad groups: the lurkers; the experimenters; and the geeks or ‘uber-users’. The lurkers form the bulk of internet users in South Africa. He said that this group has flourished due to the prominence of social media networks on Google. Simple searches often lead to social media sites, and while these ‘lurkers’ may not necessarily interact in the social sphere, they have become aware of it. “They are the readers, the passive participants in the process.”

The experimenters are those “who have dipped their toes in, started up a profile, (they are part of the millions who have set up a blog or a group once, and never blogged again).” They are those who have acknowledged that there is something going on online and in social media, wanted to understand what that is, but haven’t spent much time doing so.

The geeks, or ‘uber-users’, he identified as a small; highly-networked; highly influential; and knowledgeable group of core users that is steadily influencing the rest of the users in the spectrum.

Interestingly enough, he finds the developments towards social media are propelled by traditional media, with 5FM DJ, Gareth Cliff and newspapers like the Sunday Times, holding a strong online presence. One major shift with traditional print, has been that the publication’s move online has resulted in far more readers becoming involved in the social media side of that brand’s interaction online.

Brands that are smart are slowly but surely realising that the adage, ‘word of mouth’ is fast becoming ‘word of mouse’ (Dave Duarte) and this dynamic is what has changed the attitude of so many brands online. Brands are realising that users, ordinary people, are doing extraordinary things online.

Stopforth said he has seen the change in attitude towards social media by advertising agencies which have noticed the opportunities and no longer feel threatened by the space because in many ways, it is seen to augment above-the-line activities well. Other agencies have noted that benefits from the social space has meant an expansion of skills within the industry; increased experimentation; integration of social media into marketing strategies; staying in the conversation; and sustaining the message above-the-line.

Stopforth added that social media has also been adopted behind the corporate firewall. He said that more brands are beginning to understand that their staff love to connect with each other through these platforms and are therefore creating secure platforms to connect them, moving beyond the marketing dynamic to the HR domain.

Some South African brands which are doing well on social media networks such as Twitter and Facebook include Toyota; Samsung; Microsoft; Virgin Active; Woolworths; Vida e caffe; and Standard Bank.

Stopforth said that brands are still deciding whether to be passive or active; to be forceful online or pro-active; or merely reactive to comments about their brands.

In summary, Stopforth predicts that participation and popularity of social media will increase with the arrival of multiple undersea cables. This will see a massive increase in the amount of internet access available to average South African users. He also says that while brands are not forced to engage, they are missing out on opportunities if they don’t engage with social media.

For more information, email mike@cerebra.co.za or visit www.cerebra.co.za.

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