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The #DataMustFall Campaign has successfully created a media hype and awareness around the exorbitant costs of keeping in touch in South Africa
The #DataMustFall Campaign has successfully created a media hype and awareness around the exorbitant costs of keeping in touch in South Africa

Airtime as a Promotional Currency - a Silo Analytics Report

BRAND ACTIVITY

Issued by Jessica De Bufanos, Head Analyst at Silo Analytics - Mar 22nd, 09:42

The #DataMustFall Campaign has successfully created a media hype and awareness around the exorbitant costs of keeping in touch in South Africa.

As reported by the Huffington Post, some poorer communities have to spend as much as 22% of their monthly income just to stay connected to the world. These data costs affect the majority of South Africans. Stats SA 2016 reports 94% of South African’s own a cell phone, and of this percentage, the average user owns 1.5 SIM cards. There's no guessing why retailer airtime campaigns are used to drive product sales through till.

Silo Analytics reports that value-added deals on broadsheet where free airtime vouchers are given away with products purchased has increased by 80% in 2016.

The growth in this promotional mechanic is largely driven by Shoprite, but many other Independent retailers are following in the retail giant’s footsteps with airtime promotions. Silo tracks 29 retailers who give away airtime as part of a promotional deal and nearly 300 Brands that are partaking in this initiative. The brands that promote airtime as a value add the most are the likes of Knorrox, Johnsons, Robertsons, Knorr and Vaseline.


Graph 1 to show the month on month growth of unique AIRTIME voucher promotions in SA

R1 and R2 airtime vouchers account for over 60% of all airtime value-add promotions, with R3, R5 and to a lesser extent R10 airtime vouchers used. On average the ‘free’ airtime works out to be 11% of the total product price; however, this percentage can sometimes work out to be as high as 20% of total product price.


Bar Graph 2 to Show the Number of Airtime Vouchers promoted by Rand Value Size

Does this promotional airtime initiative drive volume through the till and create return on promotion investment? Contact Silo Analytics to learn more.

For more commentary on this topic, sign up for our newsletter on http://www.silo.co.za/#sign-up
or get in contact with our Silo Analytics team.

MATTHEW MEAGHER
HEAD: ANALYTICS

matthewm@silo.co.za
+27 31 203 3300
http://www.silo.co.za/analytics http://www.priceprobe.co.za
http://www.silo.co.za/#sign-up



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