Embracing the Ever-Evolving Marketing World Thanks
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Embracing— 1 the ever-evolving marketing world Andrew Baxter About the author — 2 Thought leader, marketer and philanthropist, Andrew Baxter is the CEO of Publicis Worldwide Australia, one of the country’s largest communications agencies. He has worked with many of Australia’s most iconic brands over two decades at Publicis, Ogilvy and Y&R, in Sydney, Melbourne and Brisbane. He has also held a number of significant Board roles at The Song Room, Melbourne Aces, Lord Mayor’s Charitable Foundation and the Communications Council. When he’s not running a multi-million dollar business or helping the not-for-profit sector, he writes about the future of marketing and communications, in a world where both consumers and technology are ever-evolving. His articles have been published in The Australian, Marketing magazine, The Deal magazine and SmartCompany. He holds a Bachelor of Business (Marketing) from Monash University and is a Graduate of the Australian Institute of Company Directors. He can be found on Twitter at @AndrewBaxter3. Copyright © 2014 Embracing the ever-evolving marketing world Thanks Thanks to Rebecca Tilly and Sandra Renowden for creating the opportunity for this series of articles. And many thanks to the two Editors at The Deal magazine, Lyndall Crisp and Glenda Korporaal, for their direction, wordsmithing and for making this book possible. Also thanks to Nick Tabakoff at The Australian and Melinda Oliver at SmartCompany for taking on my 2013 election and Silicon Valley articles. To my many work colleagues over the past 18 months, your feedback as subject experts for the various articles was very much appreciated. So a big thank you to Mark Sareff, Gavin MacMillan, Brian Vella, Adam Beaupeurt, Leon Bombotas, Dave Pountney, Phil Whitehouse, MinSun Collier, Lauren Etcell, Justin Di Lollo, David Jenkinson, Clare Robinson, Nathan Quailey, Shaun Branagan, Alex Campbell, Tim Parker, Grant Rutherford, Rob Kent, Richard McGowan, James Graham, Lois Donaldson, Justin Gurney, Adam Coward, Ryan Bernal, and Oliver Rees. To Sam Pemberton, and Chris Beghin at Publicis Sydney, thank you for so expertly designing, typesetting and producing this book. Thank you also to Tin&Ed for your wonderful illustrations. And finally, a big big thanks to my wonderful wife and two great kids for their support, patience and encouragement to do what I love doing. — 3 Contents Introduction Chapter 12 Customer Journeys Chapter 1 The customer’s path to purchase is a Smart TVs lot more complex than it used to be Up closer and more personal Chapter 13 Chapter 2 Customer Service Smartphones Customer service takes on social media Upwardly mobile Chapter 14 Chapter 3 Loyalty Programs Performance Media Perks and perils of loyalty programs Anybody want more cookies? Chapter 15 Chapter 4 Creativity Retail Technology The business of creativity Plenty more instore Chapter 16 Chapter 5 Big Data Famous Campaigns No longer lost in data space Why an ad should be hot like a sunrise Chapter 17 Chapter 6 Brands Social ROI Why people want to become more Why it pays to join the social club like brands, and brands want to Chapter 7 become more like people Big Data Chapter 18 Big data really is better Brand Engagement vs Customer Chapter 8 Engagement 2013 Federal Election The shift from pull to push strategies It’s time we found a catchy Chapter 19 election slogan Mobile Advertising Chapter 9 Advertising options should reflect Video Content & Distribution the time spent on mobiles Content is king — again Chapter 20 Chapter 10 Sports Marketing Brands Toning up our top sports campaigns Reclaiming a good brand name Chapter 21 Chapter 11 Silicon Valley Channel Planning Inside the headquarters of Twitter, Making an impression Facebook and LinkedIn — A journey to Silicon Valley Conclusion Introduction — 4 In an 18 month period when I was And then there were the topical, lucky enough to travel from the and the age-old questions. Will top of Australia to the bottom, as someone do a break-out election well as to Mumbai, Shanghai, Paris, advertising campaign? What are London, New York, Cannes and the perks and perils of loyalty San Francisco, I met with over 50 programs? Can creativity really CEOs and close to 125 Marketing drive our bottom line? Can some Directors. During these meetings, of the brands that have taken there was a consistency in the a beating in the past 18 months topics discussed; a commonality make a comeback? Why hasn’t in the areas of the ever-changing sports marketing evolved? How marketing and communications much effort should we put into world that they sought advice. push as opposed to pull strategies? The same recurring questions. And what does make the most effective advertising? Is social media really working? What’s the best way to split my The broader business community budget amongst paid, owned and clearly had an appetite to earned media? How do we take discuss these issues. So in a advantage of the consumer shift joint effort with The Australian’s to mobile devices? Will Smart leading business publication, TVs take off? Where do we start The Deal magazine, I set out to with big data? What’s the balance answer these questions. Not in between targeting people with marketing gobbledygook, but ads online versus them feeling like in simple terms. With local and we’re stalking them? How do we international examples of those influence consumers when their brands and companies that were path to purchase is so much more doing it well. With clear advice complex? Can we use social media and a perspective on the steps to help with customer service? marketers needed to take to get there themselves. How do we make the most of multi-screens and the growing What follows are these 20 hot number of content producers? marketing and communications What’s the right technology play topics, covered one chapter at in stores? Why do brands want a time. And the final chapter to become more like people and provides a glimpse into the future, people want to become more as well as a perspective on what like brands? Is a single view of it takes to be a great company a customer possible with the and brand in today’s ever-evolving multiple databases we have? marketing world. — 5 Chapter 1 Smart TVs Up closer and more personal Chapter 1 — 6 Steve Jobs once famously stated that your TV and PC would never merge. He felt you leant back and switched your brain off when watching TV, whereas you leant forward and switched your brain on with a PC. But he kept dabbling in this inevitable coming together as a ‘hobby’, and Apple TV became one of the ways that you could access the web via your TV. And now, very quietly but very quickly, over 50 per cent of Australian homes have filled up with TVs that can be connected to the internet. This isn’t just good news for technology companies, but those of us in the advertising industry can see big things coming too. We’re all looking forward to the day when we can catch you at home watching television shows peppered by very specific commercials that have been chosen because they are relevant to your lifestyle. How soon that day may come has a lot to do with how quickly Australians adapt to this new television order. While half our homes may have internet- enabled TVs, only half of those have them hooked up. There are many reasons why we’re yet to take to this new lounge room technology with more zest. First and foremost, it’s because there is no simple and common platform to bring together all of the TV and video content that’s out there. This is despite the fact that hotels rooms have had this technology for a few years, allowing you to see your bill, and more importantly movies, on demand. The fact is that TV manufacturers, TV stations, telcos, broadband suppliers, Apple, Google, Microsoft, Yahoo and Intel are all trying to crack the internet- connected TV experience, but each is doing it on their own as they try to replicate Apple’s success with music via iTunes. — 7 Smart TVs Up closer and more personal Rest assured, someone, or maybe a consortium of the above, will win this battle soon enough. In the not-too-distant future, I see a world where there is a common and simple platform to bring together all of your favourite TV, movies and video content on your TV screen, at speed and in HD, and that you can navigate around easily via your iPad or smartphone rather than a multitude of remotes or keypads. The business implications of more widespread uptake of internet TV are enormous. Content will still be king, and customers will still gravitate to what they consider are the best shows, movies, sporting events, news reports and information. And whilst it will still cost the same to produce that content, the delivery of that content to your TV via the internet is significantly cheaper than traditional infrastructure such as satellites and towers. Plus the content provider can still charge accordingly, via subscription, or make money by allowing advertisers to access that audience. What’s more, the opportunities for brands and advertisers are potentially endless. You’ll remember back in the hotel room when you first turn the TV screen on there are normally some ads about the hotel? An advertorial here and there on what you should do as a tourist while you’re there? That’s advertising specifically targeted just to those hotel customers. And that’s the big opportunity for brands in this new world where TVs are connected to the web.