Part One: Seven companies now account for a third of the total value of the US S&P 500 – and the bulk of their collective trillions in market value happens to come from marketers and advertising. It’s a crazy number, but Terry Kawaja, the fast talking banker, considered by some the ‘godfather’ of adtech start-up investment, says another wave of advertising and marketing related tech spin offs are incoming that’s making him a little more bullish than the cooling of the past 18 months.Kawaja’s New York firm Luma Partners is behind the Lumascape spaghetti maps that try to make sense of the sprawling, connected pipes of the adtech industry. Kawaja thinks consolidation has to happen for the industry to shake the cowboys – “the environment is highly fragmented and that allows people to hide,” he says.That’s code for nefarious market behaviour which undermines adtech’s credibility – and Kawaja argues a clean digital ad system is more important now than ever if open web players are to compete with big tech, especially as he sees retail media quickly eating a third of open web ad dollars.But there’s little sign of that consolidation right now and Kawaja admits adtech is still notoriously opportunistic and has played a starring role in the creation of some of the problems the market is struggling to address with junk digital data, fake people and opaque trading practices that nobody seems able to solve.Regardless, Kawaja says another wave of tech investment is coming and for good measure and says Google’s pervasive global advertising trading system being broken up would have huge financial upside for Alphabet shareholders – and the industry at large. The US Department of Justice has been landing punches over the past three weeks in its current US Federal District Court adtech “monopoly” trial against Google.
Author: admin
The new email: Lounge Lovers, Designstuff, Hey Bud tap SMS as the new strategic marketing channel, notch huge ROI – but can they avoid reach-driven pitfalls of the past?
Responsive rates upwards of 45 per cent against single digit email results, 100:1 ROI on spend, 37 per cent conversion rates on fast cart abandonment – the figures for why retailers say they’re increasingly leaning into SMS as a strategic alternative channel to email are stacking up. Even better: The money invested is not going into Google’s coffers and instead being used to build up the strength of their first-party data sets and insights. During the recent Attentive event in Sydney, marketing and business leaders from Lounge Lovers, Designstuff and Hey Bud spoke to Mi3 about the surprisingly full-funnel ways they’re now tapping SMS – many in increasingly personalised ways, but some even with the odd dose of spray and pray. But given the spam and email abuses of the past, will marketers be able to stop themselves from overusing SMS?
As Digital Natives edge towards becoming the inevitable majority, experience design needs to catch up
The kids are alright, mostly. The percentage of Australians who have only known a digital world is edging inexorably towards a majority, yet the digital experiences of government and business are still anchored in the messy transitional world of those who also remember a world of real things. To ensure they are delivering the best experiences, brands and governments need to take much more account of the changing relationship the community has with technology according to a report from R/GA. It’s a world already familiar to executives we spoke to at Kit (part of CommBank’s X-15 ventures) and Bendigo and Adelaide’s Up Bank.
YouTube claims ‘flow state’ nirvana, deeper engagement, lower ecom returns; ad buyers question whether 6-second ad surge holes argument
YouTube is out to prove its breadth of niche long-form content gets audiences more engaged than they might be elsewhere. It’s hired Kantar to help make a solid case that this so called ‘flow state’ makes audiences more receptive to new information – i.e. advertising. And it’s also making some bold claims about how YouTube reduces ecom returns. But Neuro Insight’s Peter Pynta queries whether such macro level observations go deep enough, and importantly, whether they can really be applied to advertising. From those deciding where spend goes, the feedback was mixed. Buyers are not yet convinced that it translates to all-important advertising effectiveness – and some say YouTube’s jamming in plenty of ads that might break that flow state.
AEG refreshes new brand identity and sonic signature: A modern twist on a 137-year-old legacy
Electrolux Group has unveiled a new brand identity for its premium brand, AEG. The updated identity, developed in partnership with growth and transformation firm Prophet, includes a new look and the first-ever sound identity for the 137-year-old German brand.
Tech marketer Lachlan James joins edtech player Game-U as inaugural CMO
Helping build better digital and coding skills is the top priority for Lachlan James as the first Chief Marketing Officer at edtech firm Game-U.
Foxtel Group restructures leadership as Hubbl boss follows Binge MD Amanda Laing out the door
Foxtel Group has confirmed Hubbl managing director Les Wigan is no longer at the streaming aggregation platform he led the launch of just six months ago. His departure has triggered a reshuffle of ranks at Foxtel Group and a recalibration of last year’s restructure into two revenue-generating areas: Aggregation and streaming and advertising.
Vanguard Australia cops record $12.9m penalty for ‘greenwashing’ misconduct
Vanguard Investments Australia has been ordered by the Federal Court to pay a $12.9 million penalty for making misleading claims about environmental, social and governance (ESG) exclusions. The penalty is the highest yet for ‘greenwashing’ conduct.
Foxtel makes it official, to exit OzTam’s measurement system by December 31
Australia’s official television measurement body, OzTAM, has confirmed Foxtel will no longer be included in its datasets, including Virtual Australia (VOZ) for Total TV and Video Player Measurement (VPM), from 31 December 2024.
Accor joins Nedd Brockmann’s ‘Uncomfortable Challenge’ as official Accommodation Partner
Australian hotel operator Accor is teaming up with Nedd Brockmann for his ‘Nedd’s Uncomfortable Challenge’ at at Sydney Olympic Park Athletic Centre next month, where the athlete and philanthropist will attempt to break the world record for the fastest 1,000-mile run by covering 160 kilometres per day for 10 consecutive days. Brockman aims to raise AUD $10M for people experiencing homelessness.