Customer Data Platforms (CDPs) were martech’s next big thing, promising unified customer views, slashed acquisition costs, and a golden ticket to AI-powered personalisation. Has reality live up to the hype? Two years on from a CDP deep dive, Mi3 circled back to the brands that were knee-deep in implementation to see how theory translated into practice. The verdict? Worth the effort but with some caveats around complexity, fragmented profiles and robustness – or otherwise – of data architecture. In short, never expect plug and play. Compare Club, Southern Cross Austereo and University of Tasmania weigh in on what they learned, and where next.
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CDP Payoffs and Pitfalls: Australian brands are slashing customer acquisition costs, gaining behavioural insights, and getting ready for AI in their customer data tech but the devil hits in implementation
Two years after a Mi3 published a comprehensive analysis of the customer data market in Australia, we revisited many of the brands we spoke with to assess their progress and measure their return.Companies that have persevered are realising strong returns and extending beyond their early use cases. But it has often been a hard road to hoe. There are integration and organisational challenges to overcome – and unexpected problems such as bill shock from unanticipated quarterly charges that can run into tens and even hundreds of thousands of dollars.As to the market, it’s more competitive than ever with the number of CDP vendors active in Australia rising significantly even though the volume of tenders has largely held the line, according to industry insiders. That means competition is heating up.There are three macro trends – the rise of composable CDPs – we’ll explain that later – and greater CIO control over data infrastructure amid a backdrop of three-year software renewals rolling over and the need to accurately assess ROI for a technology that is often hard to assign direct value against.Rich McFarland from Compare Club, Courtney Gerrits from the University of Tasmania, and Cam Strachan from Southern Cross Austereo dive deeply into the detail, discussing their experience with their own CDP implementations, describing the tangible benefits gained, such as improved customer acquisition costs, enhanced communication strategies, and increased operational efficiencies…there’s a few lessons they learned along the way to boot too.
Brands shifting Local Area Marketing budgets from major digital platforms: TFM Digital
TFM Digital has released a new white paper titled ‘Ditching Digital Skip Bins’, which explores emerging trends in Local Area Marketing (LAM). The report highlights a notable shift in brand budgets away from major digital platforms Meta and Google, driven by concerns over brand safety and the effectiveness of these channels for LAM efforts.
Better together? Goodman Fielder CMO on combining trade-marketing spend for retail media; effectiveness and MMM next major push
Goodman Fielder was one of the early movers in combining trade and marketing budgets in a bid for sharper overall effectiveness – handing the bulk of spend to its media agency, IPG’s Initiative in April 2023. CMO Christine Fung, overseeing 100-plus brands, says its been a learning curve. But the business remains confident “this will be the most efficient way to plan and develop holistic media strategies”. Since then, the market – and consumer wallets – have faced two years of massive pressure. Like households, all marketers are being asked to do more with less. Fung’s doubling down on a marketing effectiveness framework – and running the rule over MMM providers.
Frank Green enters physical retail fray, opens first flagship store in Chadstone
Frank Green has inaugurated its first flagship store at Chadstone – The Fashion Capital, a prominent luxury shopping destination in Australia.
Hulsbosch refreshes Kleenex packaging with strategic design overhaul
Hulsbosch has unveiled a refreshed packaging design for Kleenex’s range of toilet tissue products. This initiative is part of a strategic partnership with Kimberly-Clark, the parent company of Kleenex.
Petbarn partners with oOh!media’s Reo to launch retail media platform ‘PetAds’
Petbarn has tapped oOh!media’s retail media unit Reo to launch a dedicated retail media network pitched as the first comprehensive and scalable platform for pet media in Australia.
Bill shock, API ‘blowouts’ and vendor pile-on cool CDP ‘bender’, but ROI starting to climb as News Corp, Carsales, SCA, Tas Uni, Compare Club make customer data pay
Part 1: WooliesX learned the hard way that misconfigured customer data platforms can rapidly rack up unbudgeted costs. It’s not the only Australian CDP user to experience ‘bill shock’. Almost all the CDP customers Mi3 spoke with had similar stories. But WooliesX at least got its money back after Tealium ‘forgave’ the cost. Most customers are not so lucky as big vendors push the onus onto them to use the tools provided to manage blowouts. Meanwhile, the market has cooled from the “CDP bender” of two years ago amid heightened competition, tough macros and the zombie effect of Google keeping cookies alive. The good news is that the firms Mi3 interviewed in 2023 about their fledgling CDP integrations are now driving gains. Media costs are down and engagement is up, and brands who have weathered rocky implementation experiences say they have much greater insights into their customer behaviours. Plus, the process prepares them for what’s about to hit with AI.
SA Government launches ‘Spot the Harm, Stop the Harm’ campaign to address gambling risks
The South Australian Government has unveiled a new initiative titled ‘Spot the Harm, Stop the Harm’, aimed at addressing the early signs of gambling harm. The campaign, developed by SAUCE. The Creative Agency, seeks to raise awareness about the non-financial impacts of gambling, including effects on mental health, relationships, and overall wellbeing.
Australians seeking advice from unregulated sources as financial concerns run high: Kantar
Kantar Australia’s latest report, ‘Finding Financial Freedom’, has revealed significant concerns among Australians regarding their financial future.