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In Short                                     Trends, markets, happenings and musings
                                             – in the spotlight and under scrutiny

Uber to disrupt restaurant                                                              Make online ads
home delivery market in SA                                                              more appealing

UBER, THE TAXI INDUSTRY INNOVATOR            Uber drivers deliver restaurant take-      THE WORLD FEDERATION OF
and market disruptor, is now looking         out food to customers, who then pay        Advertisers (WFA) has called for global
to do the same in the South African          using the same cashless system that        action from brands, marketers and the
restaurant home-delivery sector with         its taxi clients use. UberEats already     advertising community to tackle the
a new service called UberEats.               operates in a number of global             growing problem of digital ad blocking.
                                             cities – among them London,                WFA believes the industry as a whole
  The service uses its own app which         Paris, Singapore and Melbourne.            must listen to what consumers are
is based on the Uber ride-hailing app.                                                  saying and take action.
                                               The company describes the service
                                             as delivering “the best of your city         “Advertising has always been cultural
                                             right when you want it. Our curated        wallpaper and we have a duty to make it
                                             menus feature dishes from the local        as attractive and engaging as possible,
                                             [restaurant] spots you love and the        so that people enjoy it [and don’t] want
                                             ones you’ve always wanted to try.          to shut it out,” said association President
                                             It’s the same cashless payment             David Wheldon in a media statement.
                                             as an Uber ride.”
                                                                                          In calling for the industry to take
                                               Globally, Uber operates several          action, the WFA envisages a three-
                                             other brand extensions based on            point process involving the creation
                                             its ride-hailing technology. These         of international standards for digital
                                             include UberYacht and UberChopper          advertising, allowing consumers to
                                             – products that enable affluent            establish clear preferences for the
                                             customers to use the app to order          advertising they are willing to see, and
                                             yachts and helicopters.                    then regularly monitoring their responses.

Poor sentiment, but sales rise                                                            According to Luis Di Como, Senior          PHOTOS: SUPPLIED
                                                                                        Vice-President of Global Media at
DESPITE SOUTH AFRICAN CONSUMER                 Inflation was running at more than       Unilever and a member of the WFA
sentiment being similar to that in the       12% during 2008/9, whereas it’s            Executive, marketers and their agencies
2008/09 recession, things are actually       currently sitting at 6,2%.                 need to “focus on creating content that
not as bad as they were then. A study                                                   is authentic, relevant for consumers
released by Nielsen research says inflation    Henry explains: “Manufacturers and       and drives talkability – creative that
levels are better and so is consumer         retailers have been diligent in trying to  enhances rather than detracts from
demand in certain categories.                ensure that they still bring affordable    users’ online experiences.”
                                             products to consumers through pricing
  “In fact, it’s clear that consumption      and promotion strategies, as well as [by
figures were far worse in 2008/9, with       offering] affordable packs sizes. This
overall pack sales declining by 7% and       includes strategies such as zero-rating
spend increasing by 5%. This is in contrast  increases on staples – for example,
to the current situation, where annual       ‘same price as last year’ promotions
spend is up by 9% and overall pack sales     – to ensure that consumers can still
are up 4%,” says Nielsen’s Craig Henry.      afford staples like bread.”

6 strategicmarketing August–September 2016
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