Digital Marketing Offers Transparency, Control, Immediate Results

In this interview with Ugo Aliogo, the Chief Executive Officer, Dochase, Chibuike Goodnews speaks on the prospects and potential of digital marketing and how it provides transparency, control, and immediate results, and other issues. Excerpts.

The Adtech Space must be wonderful. Why did you choose the Adtech Industry that is globally dominated by international companies? Is there anything spectacular about creating and driving content, as well as ensuring viewership increases?

In the AdTech world, it’s important to recognize that it’s not solely focused on the content itself, but rather the technology that enables the internet to remain free. Advertising plays a crucial role in this ecosystem by providing a means for content creators to monetize their work. By incorporating advertising technology, we ensure that content creators can earn income while allowing businesses to tap into the audience of these creators to reach customers who are actively seeking their products or services. It’s a symbiotic relationship that empowers both content creators and businesses to thrive in the digital landscape.

AdTech is often associated with global businesses, but it’s important to highlight that AdTech can also thrive locally in Nigeria. While it may seem like a game dominated by big players, we operate as a well-established business in the AdTech industry, rather than just a startup. Our digital footprint extends across various markets, including India, the US, Asia, and Africa. Even though we primarily operate in Nigeria, being in the AdTech space requires us to have a global mindset and cater to a global market.

In Nigeria, we have direct customers who choose to advertise with us. Additionally, we collaborate with advertising agencies from around the world. These partnerships enable us to serve clients who may have no direct connection to Nigeria but see value in working with us. It demonstrates our ability to provide effective advertising solutions that resonate with both local and international businesses. Our success lies in our ability to navigate the global landscape while maintaining a strong local presence.

For a startup like Dochase, capital access is crucial to your survival. How do you survive the prevalent condition of power supply and internet issues in Nigeria?

Capital is like air and Blood to any Business, and obtaining the necessary funding to scale our AdTech venture in Nigeria was a significant challenge. Many people struggled to comprehend how AdTech could thrive in Nigeria, as they often associated it with the big brands without understanding the underlying technological models. This made it difficult for us to secure investments, as people tend to be hesitant to invest in what they don’t fully grasp. It was comparatively easier for industries like FinTech, where the concept of moving money from one point to another is more straightforward.

However, we persevered and overcame these challenges. Through debt financing, we managed to raise the capital required to propel our business forward. We recognized the need to educate potential investors about the technology and its potential in the advertising industry. As a result, we have successfully shifted the narrative. We have built a robust and sustainable business that not only operates in Nigeria but also has the capacity to expand into foreign markets.
We have proved that AdTech has the potential for substantial growth and profitability, both locally and internationally. Our success story showcases the transformation from a scenario where people were hesitant to invest in a less understood technology to a thriving business that has positioned itself for expansion beyond Nigerian borders.

Recently, we have seen this Industry has had a massive transformation, enlightening us on the data and technology driving this Industry.

The AdTech industry heavily relies on data and technology to understand user behaviour and preferences. One crucial factor in this equation is the amount of time individuals spend on their screens. Companies are eager to determine the percentage of time people allocate to various activities on their screens, such as browsing the internet, engaging with social media platforms like TikTok, or streaming content on platforms like Amazon and Netflix.

These companies analyze this data to capture and retain users’ attention. By understanding the time individuals spend watching TikTok videos, reading newspapers online, or simply surfing the internet, they aim to capture a portion of that attention and engagement. Their goal is to leverage these insights to serve relevant advertisements to their target audience effectively.

In essence, the data and technology behind the AdTech industry enable businesses to tap into users’ screen time and make the most of their attention. By understanding user behaviour and preferences, these companies can strategically serve advertisements that align with users’ interests and capture their attention in a competitive advertising market.

How do you deliver exceptional services to your clients, and build long-lasting relationships with them?

In our industry, market differentiation plays a crucial role in our remarkable growth. In Nigeria, the majority of businesses are medium-sized, with only a few being large-scale enterprises. These businesses have varying advertising objectives. While some seek to raise awareness, others aim to maintain a consistent presence in the minds of consumers. However, due to the limited number of big businesses in Nigeria, solely focusing on awareness may not capture the attention of all players in the advertising market.

Dochase excels in providing a strong value proposition for medium-sized and selects large businesses by focusing on performance-driven advertising. We understand that these businesses want to ensure that every advertising investment translates into tangible results. Our technology is designed to deliver performance-driven marketing activities, enabling businesses to track the direct impact of their advertising expenditure. By utilizing Dochase, businesses can determine how many customers they can acquire from their advertising efforts and assess the value those customers bring.

We offer comprehensive visibility throughout the entire marketing process, from the moment people see your advertisements to comparing that visibility with your marketing spend. This is what sets Dochase apart. We consistently develop and enhance our technology to go beyond basic visibility metrics. Even in digital out-of-home advertising, we gather data to measure the impact on revenue. We analyze the results to understand the increase in sales and the marginal improvements achieved since the start of the advertising campaign. Our implementation of various tools enables us to achieve these objectives effectively.

At Dochase, we are committed to providing businesses with the insights and tools they need to optimize their advertising strategies. We go beyond traditional advertising metrics, empowering businesses to make data-driven decisions and achieve tangible returns on their advertising investments.

Going forward this AdTech Industry is worth over 65.1 billion dollars. What is the percentage of Nigeria’s market value to the AdTech global market figure?
In the vast Asian market, AdTech is a thriving industry with an estimated value of around 800 billion dollars. In comparison, the Nigerian AdTech market is currently valued at approximately 200 million dollars, representing a smaller digital advertising market. Digital advertising constitutes about 15 per cent of the overall advertising expenditure in Nigeria, and this share is steadily increasing. However, traditional forms of advertising such as outdoor billboards and television still hold significance in Nigeria.

One of the key advantages of digital advertising is the ability to drive and measure performance. Unlike television and billboards, digital platforms provide the means to track conversions using useful links. This enables businesses to assess the effectiveness of their advertising efforts and make data-driven decisions. In Nigeria, the contribution to advertising spend is relatively modest, resulting in a limited investment in AdTech.

Nevertheless, Nigeria’s population presents immense potential for AdTech to expand significantly in the future. As our industry grows, we are strategically positioning ourselves to tap into this potential. By providing innovative solutions and leveraging Nigeria’s business landscape, we aim to consolidate our presence in the advertising space. As digital advertising gains more traction and businesses increasingly prioritize performance-driven approaches, we anticipate a shift towards greater investment and focus on AdTech in Nigeria.

What policy do you think the government can implement for startups to favorably compete, and deepen access to internet penetration in the rural economy
Our business has been established and operated independently, without relying on significant government support. However, we recognize that government support can play a crucial role in enabling businesses to leverage their comparative advantages. Unfortunately, we haven’t witnessed substantial government involvement in our industry under the current administration. To foster a supportive environment, it is imperative for the government to understand the market dynamics and actively participate in shaping its trajectory.

Looking at global examples, Google is an exemplary instance of government support in the advertising space. If the government aims to bolster the global advertising industry, it should focus on repositioning Nigeria’s market to compete on a global scale. This can be achieved by prioritizing initiatives that enhance internet penetration in the country. To begin with, the government must create an enabling environment that addresses the cost of internet access, starting with the cost of power.

Telecommunication companies (Telcos) are the key contributors and distributors of the Internet, and power constitutes a significant portion of their operational costs. Lowering the cost of power would have a ripple effect on internet costs, making it more affordable for a broader population. By making the internet more accessible and affordable, we can expect to see an increase in the number of internet users.

With a larger internet user base, the advertising market would benefit from a greater audience reach. Cheap and accessible internet would facilitate the growth of the advertising industry, attracting more businesses and creating opportunities for revenue generation. Hence, it is crucial for the government to prioritize initiatives that drive down the cost of power, resulting in a positive impact on internet affordability and ultimately contributing to the growth and competitiveness of Nigeria’s advertising market.
With the level of disruption in the market space, are there any conflicts between traditional and digital marketers?

There is no conflict but digital marketing offers transparency, control, and immediate results. It provides precise audience targeting, real-time campaign performance tracking, and the ability to iterate quickly. Businesses can measure the impact of their digital campaigns instantly, unlike traditional marketing which takes months to see results. Digital marketing’s advantages make it essential for businesses seeking effective and measurable marketing outcomes.