South Africa’s IT and telecommunications industry is showing strong growth in 2022, and businesses are increasing their marketing spend to take advantage of these new opportunities.
A key reason for the sector’s tremendous growth is the evolving work environment that favours ICT providers. Businesses need to invest in new technology products and solutions to support their workforce, and IT and telecommunications providers are the biggest beneficiaries.
Vodacom, for example, reported a 19.2% increase in data traffic and increased its mobile data customer base by 8.2% over the last year. MTN reported similar growth.
It is not only telecommunications providers who are growing.
Alviva Group CEO Pierre Spies explained that they have seen strong demand for their work from home technologies.
BMIT’s ICT Market Overview and Sizing Report found that revenue rose significantly across most ICT sectors in 2021 – including an 8.4% increase in hardware revenue and 7.5% growth in the software sector.
Codehesion CEO Hector Beyers said that the demand for mobile app development has increased significantly in recent months.
“We have received a record number of app development requests in 2022 and had to rapidly expand our team to cope with demand,” said Beyers.
Marketing budgets increase for IT and telecoms companies
To take advantage of the strong growth in the South African IT and telecoms industry, many technology companies are increasing their marketing budgets to make the most of these new opportunities.
MyBroadband marketing director, Cara Muller, said the publication has seen an influx of new advertising campaigns this year.
“2022 has been a record start to the year for us as IT and telecoms companies are focused on increasing their market share and making the most of the opportunities available to them,” said Muller.
“There has been a particularly high demand for sponsored articles, video promotions, and social media campaigns.”
Muller added that companies are willing to pay a premium if it means they can achieve maximum reach.
“Companies are now willing to spend more to ensure they reach a bigger audience, and this is benefitting MyBroadband and BusinessTech because they reach millions of readers,” she said.
The growth in marketing spending is a great sign for the South African IT industry which continues to be a strong driver of economic growth in the country.