Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Big Microsoft 365 price increases coming next year

      Big Microsoft price increases coming next year

      5 December 2025
      Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

      Vodacom to take control of Safaricom in R36-billion deal

      4 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      4 December 2025
      'Get it now': Takealot in new instant deliveries pilot

      ‘Get it now’: Takealot in new instant deliveries pilot

      4 December 2025
    • World
      Amazon and Google launch multi-cloud service for faster connectivity

      Amazon and Google launch multi-cloud service for faster connectivity

      1 December 2025
      Google makes final court plea to stop US breakup

      Google makes final court plea to stop US breakup

      21 November 2025
      Bezos unveils monster rocket: New Glenn 9x4 set to dwarf Saturn V

      Bezos unveils monster rocket: New Glenn 9×4 set to dwarf Saturn V

      21 November 2025
      Tech shares turbocharged by Nvidia's stellar earnings

      Tech shares turbocharged by stellar Nvidia earnings

      20 November 2025
      Config file blamed for Cloudflare meltdown that disrupted the web

      Config file blamed for Cloudflare meltdown that disrupted the web

      19 November 2025
    • In-depth
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
      Valve's Linux console takes aim at Microsoft's gaming empire

      Valve’s Linux console takes aim at Microsoft’s gaming empire

      13 November 2025
      iOCO's extraordinary comeback plan - Rhys Summerton

      iOCO’s extraordinary comeback plan

      28 October 2025
      Why smart glasses keep failing - no, it's not the tech - Mark Zuckerberg

      Why smart glasses keep failing – it’s not the tech

      19 October 2025
      BYD to blanket South Africa with megawatt-scale EV charging network - Stella Li

      BYD to blanket South Africa with megawatt-scale EV charging network

      16 October 2025
    • TCS
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
      TCS | Why Altron is building an AI factory - Bongani Andy Mabaso

      TCS | Why Altron is building an AI factory in Johannesburg

      28 October 2025
    • Opinion
      Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
      It's time for a new approach to government IT spend in South Africa - Richard Firth

      It’s time for a new approach to government IT spend in South Africa

      19 November 2025
      How South Africa's broken Rica system fuels murder and mayhem - Farhad Khan

      How South Africa’s broken Rica system fuels murder and mayhem

      10 November 2025
      South Africa's AI data centre boom risks overloading a fragile grid - Paul Colmer

      South Africa’s AI data centre boom risks overloading a fragile grid

      30 October 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Google lures small business online

    Google lures small business online

    By Editor26 March 2012
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Google country manager Luke Mckend

    If there is one company that does not have to throw alms from the gilded corporate carriage to the unwashed masses of small businesses out there, it is Google. Its very existence is already a potent form of small-business support. Yet the Internet juggernaut has recently stepped up its outreach to SA small businesses.

    Woza Online, Google’s newly launched service that allows small businesses to build their own websites for free with the minimum of information technology expertise, seems like typical “soft” corporate social investment that looks good in the annual report but has little real effect on small-business development.

    It is also nothing new. SA’s own Silicon Valley-based Internet entrepreneur, Vinny Lingham, started an identical service about five years ago. Called Yola, it had more than 1m users worldwide when Lingham stepped down as CEO at the beginning of March.

    But a closer look at Woza Online reveals a snug fit with Google’s SA strategy to maintain and grow its dominance of the ­digital economy in the region against the distant threat of Facebook and Twitter.

    A quick survey of small businesses that have signed up for Woza Online indicates some positive results.

    But Google’s biggest challenge in SA at this stage is not Facebook or Twitter. Graham Lipschitz, business development manager of Clicks2Customers, a Cape Town-based agency that advises companies on Internet advertising campaigns, says 95% of the agency’s business comprises buying search terms from Google, against 5% of advertising on Facebook.

    Google’s Internet advertising offering, which captures the attention of potential buyers at the very moment they are looking for the product, is hard to beat even for Facebook, whose demographic targeting remains a blunter instrument, albeit a compelling one, says Lipschitz. And Twitter is yet to work out how, or if, it will use advertising to make money.

    For now, Google’s main adversary in SA is the Luddite who remains offline. Online search, Google’s raison d’être, is only meaningful if enough of the economy and society is searchable online. If no plumber from Polokwane has an Internet presence, it does not make sense for residents to use Google to search for one. Google’s first priority is therefore to make its search more useful by getting more businesses, as well as clubs, institutions and individuals, online.

    The better online search becomes, the stronger Google remains against competitors such as Facebook and the more Adwords Google can sell, says Arthur Goldstuck, technology and small and medium enterprises (SMEs) researcher from the Johannesburg-based consultancy World Wide Worx. Adwords are search terms, such as “plumber Polokwane”, that businesses buy at an online auction. The winning bidder gets a small text advertisement that appears on the screen of anyone typing that search term into their Google browser.

    Preliminary results of research conducted by Goldstuck in collaboration with Google indicate that more than a third of the “about 650 000 active small and medium enterprises in SA” remain offline, whereas 63% do have a website.

    But the key outcome of the research, the final results of which will be presented with the outcome of Google’s Woza Online campaign in April, “shows very clearly that an SME with a website is substantially more likely to be profitable than one without. Where the difference is dramatic is when you look at SMEs that are highly profitable. Those with a website are dramatically more likely to be highly profitable than those without.”

    But does having a website actually cause profitability, or did the research merely measure something like business sophistication, which can lead both to having a website and making good profit? Goldstuck says, to test causality, the research included questions such as: “Would your business have been able to survive without a website?”

    “Twenty percent of respondents said ‘no’. And that is very dramatic — one out of five would not have been able to survive had they not had a website.”

    The main advantage that a Web presence confers on a small business is giving it access to markets it is not able to reach through traditional means. And it does so in a way that levels the playing field between big and small businesses, says Goldstuck, because a website can project an image of being a substantial business.

    If a website is a business’s stall in the marketplace, Google is the advertising medium that pulls the customers to the stall. Advertising has never been so affordable for small businesses, says Gareth Leck of Joe Public, an advertising agency that started off serving small businesses but has since moved on to big clients. He mentions the example of a guest house that spends R2 000/year on Adwords, which brings in revenue of R200 000.

    Arthur Goldstuck

    “It’s absolutely brilliant. I’d never be able to realise that return on investment through traditional media. R2 000 wouldn’t even buy you half a spot [of radio advertising].”

    If the advantages are so compelling, why is it that 37% of South African businesses still do not have a website? Conservatively estimated, just more than 8m South Africans have Internet access, says Luke Mckend, country manager for Google SA.

    Although the number is growing fast, especially with cellphone internet access, internet literacy takes a while to develop in a user, says Goldstuck, and having a website is a relatively high-end function of the web.

    For Lianne de Beer, owner of a six-year-old business called Party Platters in Edgemead, Cape Town, the main reason for delaying getting a website is cost. Before Woza Online, a professional-looking website would have set her back at least R10 000, out of reach for her home-based business, she says. She was not aware of free website-building services such as Yola, suggesting perhaps that Google’s marketing muscle could make a significant difference to how the SA small-business community views websites in the future.

    De Beer says the response from website partyplatters.wozaonline.co.za has allowed her to scale up her business from the part-time service she kept going while raising her toddlers to a full-time pursuit now that her children are slightly older. Before the website she had about three orders a month; now it is three a week. She believes part of the success of her website has to do with her choice of name, which is close to the terms that people would use to search for her product.

    At least one Woza Online website went viral. Jean-Paul Reid, an unemployed accounting graduate in Cape Town, heard about Woza Online on a local radio station and created naturalcompany.wozaonline.co.za that offers nude cleaning, handyman and even accounting services offered by a dozen similarly unemployed acquaintances. The idea is you hire a nude housecleaner, accountant, plumber or whatever. They pitch up at your house, take off their clothes, and start doing the job in the nude.

    Exposure on local talk radio stations and in The Times pushed hits on his website into the hundreds of thousands, but earlier this week he was scrambling to get an alternative website up after his Google site shut down. Google staff whom he contacted could not tell him whether it was because of the high traffic volumes or because the site is regarded as too risqué for Google’s platforms.

    On the other end of the spectrum is accountant Gari Mutongoreya, who has so far not had any response from his website, garikaimutongoreya.wozaonline.co.za.

    Perhaps the nature of the service or his choice of name explains the lack of response, but Mutongoreya’s experience also suggests that most websites need active complementary marketing to work.

    Rudi Rademeyer, owner of SA Floor Build, which had its first website built through Woza Online three months ago even though the business is more than a decade old, uses advertisements on free classified advertisement sites such as Gumtree and Junkmail to drive traffic to his site, safloorbuild.wozaonline.co.za. He believes the site, which he built himself in January, has been responsible for a 40% increase in business so far this year.

    Rademeyer suggests that traditional business success has a lot to do with the inertia of moving businesses online. He says he simply never had the time to get around to having a website set up.

    Mckend is tight-lipped about the number of businesses that have so far signed up for Woza Online, preferring to keep the outcome for the results presentation in April. But he says it is in the thousands and the response shows a “huge latent demand” for an online presence from businesses.

    Goldstuck believes that the lack of available bandwidth and its high cost and inconsistent quality are at least partly to blame in keeping a big part of the SA economy out of the 21st century.

    “What is encouraging is that the department of communication is keenly aware of this and we are hoping that the department of trade and industry will become more aware as well.”  — Barrie Terblanche, Mail & Guardian

    • Visit the Mail & Guardian Online, the smart news source
    • Subscribe to our free daily newsletter
    • Follow us on Twitter or on Google+ or on Facebook
    • Visit our sister website, SportsCentral (still in beta)


    Google Luke McKend Vinny Lingham Yola
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleKnott-Craig wants 25% of market for Cell C
    Next Article Reunert mulling legal action over Holdsworth hires

    Related Posts

    What South Africans searched for most in 2025

    What South Africans searched for most in 2025, according to Google

    4 December 2025
    Amazon and Google launch multi-cloud service for faster connectivity

    Amazon and Google launch multi-cloud service for faster connectivity

    1 December 2025
    Alphabet races toward $4-trillion valuation - Google

    Alphabet races towards $4-trillion valuation

    25 November 2025
    Company News
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    Telcos are sitting on a data gold mine - but few know what do with it - Phillip du Plessis

    Telcos are sitting on a data gold mine – but few know what do with it

    4 December 2025
    Unlock smarter computing with your surface Copilot+ PC

    Unlock smarter computing with your Surface Copilot+ PC

    4 December 2025
    Opinion
    Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

    Your data, your hardware: the DIY AI revolution is coming

    20 November 2025
    Zero Carbon Charge founder Joubert Roux

    The energy revolution South Africa can’t afford to miss

    20 November 2025
    It's time for a new approach to government IT spend in South Africa - Richard Firth

    It’s time for a new approach to government IT spend in South Africa

    19 November 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Big Microsoft 365 price increases coming next year

    Big Microsoft price increases coming next year

    5 December 2025
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

    Vodacom to take control of Safaricom in R36-billion deal

    4 December 2025
    Black Friday goes digital in South Africa as online spending surges to record high

    Black Friday goes digital in South Africa as online spending surges to record high

    4 December 2025
    © 2009 - 2025 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}