Comments on: What’s Google East Africa’s strategy?

By: Harris

Harris — Thu, 14 Aug 2008 06:43:30 +0000

I was really amazed by the Google deal with wunderman. There was a time some company I was working for in Nairobi wanted to buy some adwords and I cornered some Google sales reps and asked them if I could write them a cheque for the adwords and then I start working and guess what ? I could not do that directly with Google and yet I can use my credit card and pay the same this is the mentality Kiptum is talking about.

Google needs to embrace local talent in a way that is beneficial to them and also to the local community to create a truly beneficial partnership now and in the future…

By: Openvestor

Openvestor — Mon, 23 Jun 2008 07:55:54 +0000

I see two things here: Google looking for a market and Google searching for talent.

Like Leo, I am happy with whatever strategies they employ to monetize their services in the region - through Safaricom mail, Wunderman, adwords … you name it. I just hope they dont land here with big corporate mentality (e.g. Microsoft, SAP, Oracle)

It is unfortunate that they would give such low prizes for their Kenyan competitions and $10 million for Android. However, Kenya is human capital rich, and some people still find that attractive and if that will draw people into developing useful apps, then I’d commend them. After all, who else is offering prizes for local content developers?

It turns out though, that for them to get the real market, that they can monetize directly, they need to engage local talent in developing content that is locally appropriate and popular. How much they invest in local talent thus might in the end determine how successful this market develops into for them

By: Leo Faya

Leo Faya — Wed, 18 Jun 2008 00:03:58 +0000

Interesting post Ory,

I don’t think anyone on this list would be privy to know or understand Googles strategy. It does however make some good blogging posts. Davids idea and foresight that Google could be forming long term Media strategies sounds more formidable. A few years ago when a company called Spot Runner was launched - http://www.spotrunner.com/ - I knew it would make sense for a lot of Interactive companies to merge or make long term mergers with traditional media.

That has been the case and point in the US largely throughout the later part of last year. Mergers and acquisitions of traditional and New Media marketing/advertising companies. I am okay with Google being in town, I am okay with them implementing what i call the “hit or miss” ideas. Companies do that all the time. What am not happy with is the value underpinned to the gadget competitions and the value prepositions of different Kenyan developers.

I’ve often said that if Google is serious about seeing real Animal applications, developments or ideas from Kenya/ Africa. Why not assign a handsome amount like 1million dollars. I am sure a list of talented Kenyan developers who sit behind Oracle, SAP, Sun Microsytems, Google, MSFT desks everyday will come out of the woodworks to create interesting things. 1Million is nothing compared to the 10Million for the Android developer winner.

I understand what Google hopes to accomplish in Kenya/Africa - I dont see how they are doing it, but I understand it. For what its worth possibly not now, but in the future - the same impact Adwords has had in the US/UK market will have ripple effects in Africa as a whole. Possible Mobile phone Ad applications may be integrated and we will all be one happy family.

By: Joshua

Joshua — Tue, 17 Jun 2008 14:57:39 +0000

David and NonPulised , I see your points and have to agree. If the strategy extends past the net into the other medium Google has been getting into, they working with local agencies is a great way to enter a market.

By: Joshua

Joshua — Tue, 17 Jun 2008 14:49:08 +0000

Ory,
Maybe some “expert” told Google they couldn’t get into the East African market without going through these companies. The reasons could have been many. One that I could think of, they were sold on the idea that we don’t know what the hell Google is.

By: Fimbo

Fimbo — Wed, 11 Jun 2008 19:51:11 +0000

On the Wunderman deal, it seems this is a B2B kind of transaction. Consumers and small time players need not apply.

The GOOG folks have cornered the market even before the game has began. They are hosting all the data in Gmail, blogspot, Maps, search, youtube etc what else is left for the rest of the entrepreneur wannabes to fight over? There is no “free ride” here, we are nothing more than e-squatters (nice word that)in their plantation.

On Safcom email- i think it makes a lot of sense if it ported to their phones.

By: Whats Google East Africa’s Strategy? at Moses Kemibaro

Whats Google East Africa’s Strategy? at Moses Kemibaro — Wed, 11 Jun 2008 13:09:05 +0000

[...] posting on the Kenyan Pundit web site about Google East Africa signing a partnership with Wunderman Kenya [...]

By: Moses Kemibaro

Moses Kemibaro — Wed, 11 Jun 2008 13:01:06 +0000

This is a really really lively debate! My take is that ultimately, Google will make close to zero in East Africa for the short-term. However, in the next few years, things will really begin to take off as internet adoption grows and local online content and services proliferate. As for Wunderman, they are showing all the old school agencies the future of marketing has arrived and they plan to stay relevant, even if very early in the game. Its important to have a global context instead of a kenyan one in what has transpired.

By: Ory Okolloh

Ory Okolloh — Wed, 11 Jun 2008 12:32:49 +0000

Thanks everyone for the enlightening comments…I can see clearly now…hehehe (and I was not implying that Google should be philanthropic in any way, just trying to understand their grand strategy in East Africa as it were).

By: David

David — Wed, 11 Jun 2008 00:51:25 +0000

Everyone needs to step back and look at the big picture. Google is not just expanding into East Africa. The exact same initiatives have been launched in the Middle East too - these are regions with a +1000% growth rate in internet reach and penetration (In the last 5 years) - so there’s plenty of potential down the road.

These regions are tiny though in Ad Revenue Sales (Both Online & Offline) in comparison to the West and Asia… which is reflected in their Google Gadget Prize. Expect the prizes to be worth a lot more down the road as the market grows.

Google is positioning itself to become an Media Powerhouse. Forget the internet - Google has taken major steps to integrate TV, Radio and Print. Does it now become clear why Google has started targeting Media Buying agencies like Wunderman so early? Google plans on becoming the one-stop-shop for media buying. Imagine this… Kenya Airways could go to a firm like Wunderman for all their media buying and Ad Agency needs - TV, Print, Radio and Online… you name it. For Wunderman, all their work would be streamlined in a special interface google has been working on - just for Ad Agencies. Detailed reporting is included!

So yes - Google has a grand strategy.