Mobile industry growth-Ad Agencies go hand in hand (Kenya)Outdoor advertising is one of the biggest marketing media in Kenya where mobile operators are spending excessively. “It’s the kind of spending that in the past has been associated only with cigarette brands or Coca-Cola,” said Michael Foley, who runs the East African operations of Essar Group of India, a company that is backing a new wireless network scheduled to begin operating in Kenya. Safaricom dominates the mobile business in Kenya for years, a local company whose biggest shareholder is Vodafone, with 85 percent and the rest hold by an operator in Kuwait, Zain. Two newcomers will soon join the chain. As Essar, France Télécom have recently acquires a controling stake in Telkom Kenya. They are planning to build a new mobile network that may market under the Orange Brand. According to a local media report, Telecommunications companies are expected to spend about 4.7 billion Kenyan shillings (or about $72 million) on advertising this year. Safaricom alone accounts for 2 billion shillings in spending. Given its dominant position, Safaricom plans no new directions in its advertising, Mr. Joseph, the chief executive, said.
Fance Telecom appointed an ad agency, Access Leo Burnett based in Narobi to introduce the Orange brand to Kenya. The agency plans to align the brand with the international positioning of Orange, said Annette Martyres, managing director of Access Leo Burnett, which is part of the Publicis Groupe. France Télécom recently introduced a new ad campaign, developed by another Publicis agency, Fallon, under the theme, “Together, we can do more.” Essar said that it plans to introduce an entirely new brand name when Econet Wireless International, a company in which Essar holds a controlling stake, starts its new network. But Mr. Foley declined to say what that name would be, although he said the company’s marketing, developed by the Ogilvy and Wunderman units of WPP Group, would be aimed at users 14 to 35. Mobile industry executives visioned plenty of room for growth, given that only about 35 percent of Kenyans have mobile phones.
“There is tremendous potential,” Ms. Martyres said. “The growth of the industry has been huge. Everybody wants to own a mobile phone,” she added.
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