Fears and facts
Most companies reach a point when they start looking for new audiences or markets. Many turn their sights to so-called emerging markets: countries with over 4.3 billion people accounted for 50.1% of the global GDP in 2023. Still, few companies really focus their marketing efforts on customers in these countries because of the potential obstacles.
What’s stopping them? First, limited internet access may make it difficult to reach all potential clients while executing a tech-enhanced marketing strategy. According to the World Bank, only 35% of people in developing nations have access to the internet. At the same time, in developed countries, this number is over 80%.
A similar concern relates to digital literacy. After all, if customers aren’t familiar with modern technologies, it’s not easy to use ad tools efficiently. Also, marketers often worry about cultural differences: what if they can’t walk in “customers’ shoes,” or it’s too expensive to discover the potential audience’s needs and preferences?
Some other troubling factors include too diverse demographics (subtext: costly research and launch), high uncertainty (including political and social), lower income and a growing inflation rate (you can’t be sure customers will be able to buy your services or products tomorrow), etc.
Despite these concerns being quite substantial, emerging markets also have tangible upsides. For example, global connectivity has been improving yearly, and by 2025, almost half of all new mobile subscribers will live in Asia. Smartphone usage has also been growing in developing countries, along with the number of e-commerce and other digital service users. For instance, Africa accounts for 300 million mobile money accounts, the highest in the world.
Customers in emerging markets are not only becoming more comfortable with digital tools but also becoming wealthier. In India alone, the middle/upper class will grow by over 400 million people in the next 20 years.
Rethinking Strategy to Make It Work
One crucial thing to remember when entering new markets is that you can’t just copy-paste the same strategy you’ve been using in the home market, even if it’s been an enormous success. You should at least tailor it. Here are some tips that may help:
1. Spend time researching cultural differences, traditions, and do’s and don’ts in the local market. Then, check all your advertising materials and ensure they won’t seem offensive or meaningless to customers. The marketing world is full of hilarious and disastrous examples. For instance, for years, Procter & Gamble has used the image of a stork delivering a baby to promote the Pampers brand. Nevertheless, it didn’t work in Japan: the local customers weren’t familiar with this metaphor.
2. Localize smart. Even if your ads are culturally sensitive, you may need more to adapt your strategy to the foreign market successfully. You have to check twice if your translations are correct. Say, when KFC entered the Chinese market, it used the proven slogan, “Finger-lickin’ good.” The only problem was the translation: in Chinese, it meant “Eat your fingers off.”
That’s why it’s wise to enlist the help of local professionals to translate your ads and other marketing content. They can navigate dialects and language nuances that might otherwise distort your messages. Interestingly, there’s a global trend known as vernacularization, which advocates for using local languages instead of ‘international’ English. According to experts, this approach can significantly boost engagement and lead generation.
3. Use technologies and digital approaches to reach customers more efficiently. One of them is mobile advertising. It allows companies to reach customers through their mobile devices and use different types of mobile ads, like SMS ads, video ads, banners, push notifications, in-app ads, etc.
For example, part of the fintech company Wise’s expansion was localizing ads on social media. Wise didn’t just translate its messages and images but changed them according to the local context in each new country. For example, in Turkey, the message was simple: “Wise is cheaper.” It probably wouldn’t work that well in a developed country, but for a developing country, it’s spot-on.
Another helpful tool is geotargeting. It allows companies to show ads to potential customers in a specific location (for instance, using GPS technology). One example of an efficient geotargeting campaign is KFC’s Hot N Cheezy. When a customer was eating a burger in a competitor’s restaurant, they saw the ad offering to scan the burger wrapper. After that, a fun and catchy music video appeared so the customer could enjoy music while eating. At the end of the video, they also received a promo code to try the new burger from KFC. This campaign made much noise in Malaysia and Southeast Asia; the company received 16.5 million social impressions and even cut the campaign three weeks short because sales skyrocketed.
The third convenient approach is programmatic targeting, which allows companies to use datasets to determine the best audience and the best places to find customers online. You can collect or buy this data from another organization or provider, such as public data exchanges, demand-side platforms (DSPs), or data management platforms (DMPs).
The programmatic approach is quite popular in emerging markets. For example, in 2021, companies in Latin America spent $8.24 billion on programmatic advertising, and this number is expected to reach $15 billion by 2026. Brazil, Mexico, and Colombia are the leaders in this region.
TO SUM UP
It’s always scary to enter the unknown realm. Emerging markets may seem very distant and strange at first, but as soon as you start finding out more about customers’ preferences, local trends and cultural norms, you’ll come up with the next steps. The main thing to keep in mind is that no matter how successful your ad strategies are in the home market, you need to adapt them to every new country. And who knows, maybe your expansion will be the next huge success.
For more expert articles and industry updates, follow Martech News
ABOUT THE AUTHOR
Lina Lugova, Chief Marketing Officer at Epom
Lina Lugova is the Chief Marketing Officer at Epom, a family of ad tech products. With over 10 years of experience in digital marketing, Lina is known for her expertise in data-driven strategies, brand management, and cross-channel advertising.