Online media - the future of Caribbean advertising?

Integrating online communications in marketing and public relations campaigns are an off and on venture in the Caribbean. Not all companies do this, some do it well, and some even when they try, they don’t do it right.


The argument has always been that the penetration rates in this region are not as high as that of more developed countries. This argument is not without validity, but that doesn’t mean that in a country like Trinidad and Tobago, where the Internet penetration rate is a mere 12.3 percent, online communication is a waste. Some countries have much higher penetration, such as Barbados with a 59.8 percent penetration rate. This sort of usage allows sites such as Barbados Free Press to create a stir locally and to build popularity virally.

If you analyse the demographics and psychographics of these users, you will find a mix, from young to old. You’ll find housewives, professionals, students, businessmen, and politicians. You’ll find people who will apply what they’ve learned online to their daily spending habits; you’ll also find those who will comfortably do online transactions, and have confidence making purchases online with their credit card. More importantly, you’ll also find people with disposable income who will want to support your brand and products. Interestingly, in the last survey of Internet usage in Trinidad and Tobago, we found that location-wise, more people in South used the Internet than people in the North/ North-East. Little facts like these can have a deep impact on using various media to target people in different locations.

Based on the most recent figures from Internet World Stats, 39,622,875 is the 2007 population estimate for the Caribbean, and within this figure there are 6,088,209 Internet users as of September 2007, revealing an overall 15.4 % penetration rate. This figure presents an average estimate, I would think, since some of Internet World Stats’ research for usage reveals late 1990s and early 2000s figures. More recent statistics for some Caribbean countries, usage and penetration are listed as:

- Antigua and Barbuda - 32,000 Internet users as of Sept ‘07, 44.2% penetration, per ITU.
- Bahamas - 103,000 Internet users as of Mar ‘07, 30.7% penetration, per ITU.
- Barbados - 160,000 Internet users as of Sept ‘06, 59.8% penetration, per ITU.
- Cuba - 240,000 users as of September ‘07, 2.1% penetration rate, per ITU.
- Dominica - 26,000 users as of March ‘07, 36.4% penetration rate, per ITU.
- Dominican Republic - 2,100,000 users as of May ‘07, 22.7% penetration rate, per INDOTEL.
- Grenada - 19,000 users as of December ‘05, 18.8% penetration rate, per ITU.
- Haiti - 650,000 Internet users as of September ‘07, 7.7% penetration, per ITU.
- Jamaica - 1,232,300 users as of April ‘07, 45.5% penetration rate, per ITU.
- Martinique - 130,000 Internet users as of March ‘07, 32.5% penetration, per ITU.
- Puerto Rico - 1,000,000 users as of June ‘05, 25.0% penetration rate, per PRW.
- St Lucia - 55,000 users as of September ‘05, 32.4% penetration rate, per ITU.
- St Vincent and Grenadines - 10,000 Internet users as of March ‘/07, 7.9% penetration, per ITU.
- Trinidad and Tobago - 163,000 users as of September ‘07, 12.3% penetration rate, per ITU.


 

Social networking sites like MySpace, and especially Facebook, will reveal that thousands of Caribbeans are online, and are being engaged by technology. They’re also becoming influencers in their category and are helping to promote or criticise brands. New communities are being formed every day on Facebook, so you’ve got to be about on the web to understand these, or at least have someone who has the time to do it advise you.

I’ve heard several communicators at seminars ask questions about the Internet, which betray the fact that they’re very unfamiliar with social media and traditional Internet marketing methods. To make an analogy, you can’t understand what a poor person goes through unless you’ve been poor yourself or have spent sufficient time in that person’s environment to understand the routine of his or her life, the factors that affect him or her, the influencers, and their needs and wants. Similarly, you can’t integrate online communications or start a social media campaign without understanding the dynamics of the digital world. You’ve got to also not get caught up in thinking that hardwired people – those who blog, network online, in other words have a P.O. Box on the Internet – are that much different from your average consumer. They’re people too; they’re just people who may be early in starting trends or whose behaviour is dictated by their personal taste and individuality, as opposed to moving in a tribe-like fashion.

According to David Mullings, a columnist at Silicon Caribe, and CEO of Real Vibez, Caribbean advertising firms plan to take the Internet seriously in 2008.“I know for a fact that at least one major advertising firm in Jamaica is planning to hit the web hard in 2008 and start promoting their clients’ products and services,” he writes. “Most Caribbean businesses have limited online advertising presence and it seems that the online advertising fever in the US is spreading, which bodes well for site owners. This particular firm spent 6 weeks researching content-based Caribbean websites and they said that the most important factor they were looking at was… professionalism. Traffic was secondary because they would rather work with a professionally-run website that had little traffic because the traffic would grow (and they don’t mind getting in early). 2008 is shaping up to be a great year for web entrepreneurs who can create content-driven websites that reach the desired target markets - usually Caribbean people outside of the Caribbean. Targeting locals is however becoming more lucrative as well.”

The opportunity to monetise Caribbean blogs and websites exists, so online communication presents entrepreneurs with viable business options. However, to accrue the benefits the Internet offers, you have to do the background work. I truly believe that you can’t just depend on reading literature about online media and usage, especially as it relates to the Caribbean. In the Caribbean, we suffer from a lack of research, and the availability of the little research we have. A cultural shift is needed to take the time out to understand the behaviour of our people – social and technological. Marketers, advertisers and public relations practitioners alike must take the time out to understand the digital world. You don’t have to become an addict to it, simply understand it enough so that when you try to integrate online communication, you understand what you’re about.

Agencies are expensive. When your agency is advising you or pitching ideas, you have to have enough knowledge so that you can discern that they know what they’re talking about and that what they’re suggesting makes sense. After all, if David is right, then they’re going to make a pretty penny off you because they’re going to pitch online communications as being cutting edge.

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Comments

You raise a valid question with your title and the post is well put together.

The fact of the matter is that even though internet penetration rates in Caribbean countries are low, the penetration rate amongst middle-class and upper-class members of Caribbean companies is very high.

Companies who seek to reach these people would be smart to tap into online advertising as an additional way to interact with this very desirable group of people who have disposable income.

Of course, the real money is in getting to the Diaspora - those outside of the Caribbean but still connected.

The perfect example is Sandals/Beaches and their ads on CNN. I have yet to see a serious online campaign from them.

“Well put together” is an under statement Mr. Mullings. I will add excellent investigative work.

Suffice it to say, I support both your views as Karel is quite aware. So, apart from the penetration ratings of the individual islands the external links I find quite useful.

Thank you.

I’ve long thought the 12% Internet penetration figure for T&T unconvincing, and would like to know how the ITU arrived at this–any ideas?

Nicholas: I don’t know their methodology either, and my concern also lies in the fact that they have “updated” statistics for some countries while others are outdated.

When I last scoped out the Ministry of Information’s research paper on Internet usage in T&T, it had also signalled this 12.something percentage. I think that this figure was also based on Internet Stats counting, but I have to doublecheck that.

What do you think the usage stands at?

Thanks for the interesting article. I believe caribbean technology trending is one step behind the major countries. There is an extreme growth potential within the next 10 years for the caribbean. As wifi networks take the strain off of land lines. Especially in compact islands like the caribbean. DSL will be economic for a new user, maybe implement a minute package. Also, ecommerce growth will be great as the internal banking sytems allow more small businesses to accept credit cards online with real-time world exchange technology. Crime is the main issue that prevent these beautiful island to move to the next level. I think ecommerce can put a dent in alot of cash related crime in the caribbean.

Thanks for your time

Kevin

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