Aussie Advertising Worth $40 Billion: Digging Under The Numbers

Aussie Advertising Worth $40 Billion: Digging Under The Numbers
SHARE
THIS



In this guest post, Ben Birchall (pictured below), ECD editorial at CHE Proximity Australia, takes a look at last week’s Comms Council announcement about the value of the local ad industry and says we all need to look past the $$$$…

Industry watchers will have noticed this week that the Communications Council has released its report Advertising Pays: The Economic Employment and BusinessValue of Advertising in conjunction with Deloitte Access Economics. It’s the first comprehensive study into the value of advertising, and it may not surprise us that it’s worth a fair bit: annual expenditure on advertising in Australia was $40 billion in 2014. That’s almost 2.5 per cent of GDP.

Unknown

They’re impressive figures. But digging below the numbers, one section resonated.

“Advertising has a role to play in corporate strategy,” the report states.

As somebody who works at an agency riding the disruptions of the industry, this made sense. Disruption isn’t new – radio was going to kill print, TV was going to kill radio, digital was going to kill TV and now programmatic is going to kill everything. The difference to this wave of change is that our outputs as advertising agencies is changing. So little of what I do – and what we do – can be described as advertising.

Our role now takes in insights, media strategy, product innovation, bidding, CX, UX, public relations. And that was just my Wednesday.

Advertising used to drive sales. But then, I used to be a copywriter that knew that 80 words just fits into 30 seconds. In the new paradigm, advertising isn’t just about the ad, it needs to be about everything in the ecosystem. And for a copywriter, those 80 words now need to have multi-variant versions for various user journeys and include 17 SEO keywords.

As Chris Howatson, CEO of CHE Proximity Australia reminds us weekly, “if we’re not servicing the entire customer journey, we’re not truly making people more valuable to brands.”

So how do we do that exactly? I’ve picked four areas the report touches on that help to define the broad brush strokes that make up the modern agency.

Experience: End to end thinking

The report states: “As consumers have access to more information about products and services…it is more important than ever to ensure that those products, services and also customer experiences deliver clear and consistent expressions of a firm’s brand.”

Screen Shot 2016-06-17 at 4.37.41 PM

As we see from the graph, brand image plays a vital role in how we choose a product or service. But advertising only makes up a small portion of this brand image – the rest is all about the experience. It means that how brands are built has fundamentally changed. There are so many interactions with a brand and our perception is built on every one of those touch-points.

People buy products for the things at the edges: brand experiences. The Tiffany’s box, the Uber app (and free chewie and water), Apple Pay. As agencies, we need to inform every one of these moments, and not trust that they will be handled by another agency. The future of the brands we’re entrusted with depends on it. Their growth and market position depend on it.

Insight: Taking a closer look 

Insight has always been part of advertising, the report notes: “Customer insights are required to understand changes in consumer preferences, which inform corporate strategy and a shape the development of product and service offerings.”

We’re no longer testing the ad and changing the headline or making the logo bigger. We’re testing the journey, shaping the product and making the service bigger. And we’re doing it in more sophisticated ways. We have an actual astrophycisist in our data department at CHEP.

Innovation: Making it up 

Innovations don’t stop in the ad breaks any more. More and more we’re seeing product and advertising blur, particularly in the digital space. There would be very few agencies that don’t have an app on the shelf of the eStore for one of their clients.

We recently rolled out an Apple Watch app called Fearless. The Snickers Hungerithm uses social media sentiment to meddle with price – one of the P’s of the marketing mix that advertising traditionally didn’t touch.

Another of the case studies in the report is the Share a Coke campaign from Ogilvy. Far from living in the ad breaks, this was packaging design. And more than a local campaign, it’s been rolled out in over 80 countries.

Integration: Bringing it all together 

Another case study in the report is the NAB Break-Up. The beauty of the Break-Up is that essentially, it was a corporate manifesto that touched all aspects of the business. As the report states:

“Maximising the potential of advertising as an effective business strategy tool is reliant on collaborative leadership at the leadership level.”

It’s hard to believe the Break-Up working without buy-in elsewhere in the C-Suite. Even the bravest CMO wouldn’t fly a helicopter over a major city with their logo on it. Agencies can play a role in galvanizing our clients’ vision, helping them think bigger and take that thinking to their customers.

Advertising Pays is an excellent snapshot of the industry over the past few years. In thinking about where the next $40 billion will come from, and to continue to support the 200,000 people we employ, our scope needs to broaden.

As advertising agencies, if we’re only looking after the advertising for our clients then we’re not trying hard enough.

 

Please login with linkedin to comment

Designworks Edge smoothfm

Latest News

Women in Media Profile: Jo de Fina
  • Media

Women in Media Profile: Jo de Fina

Discover what makes The OTTO Empire's Jo de Fina tick right here. Not to suggest she's swallowed a large clock, however.

by B&T Magazine

B&T Magazine
Snapchat To Launch Unskippable Ads
  • Technology

Snapchat To Launch Unskippable Ads

Snapchat to roll out six-second unskippable ads. What, we can't sit through six-seconds? What have we become as humans?

Xero Celebrates The Beautiful Moments Of Small Business In New Campaign
  • Advertising
  • Campaigns

Xero Celebrates The Beautiful Moments Of Small Business In New Campaign

Cloud accounting software provider Xero has revealed the next phase of its ‘Beautiful Business’ brand campaign. The national campaign showcases the moments that define beautiful business, from the flexibility of remote working, to reclaiming valuable time and the chance to focus on the important things in life, enabled by streamlined accounting and business processes. The […]

QUT Creative Enterprise Australia Accepts 10 Start-Ups Into Its Creative Tech Accelerator
  • Technology

QUT Creative Enterprise Australia Accepts 10 Start-Ups Into Its Creative Tech Accelerator

QUT Creative Enterprise Australia (CEA) has announced the 10 start-ups that have been accepted in its Collider Accelerator. The three-month accelerator is a proud Australian first which is carving the way for start-ups specialising across the creative tech verticals. Commencing this week, the 10 participating companies will receive coaching from international mentors and deep domain […]

The Works Launches Podcast With RXP Services & Global Law Firm Norton Rose Fulbright
  • Advertising
  • Technology

The Works Launches Podcast With RXP Services & Global Law Firm Norton Rose Fulbright

Expert insights on what’s trending in the world of technology, data and innovation will be discussed in a new podcast powered by The Works, digital services consultancy RXP Services, and global law firm Norton Rose Fulbright. The Smart Dust podcast – named after micro-electromechanical computers that that can be breathed in to monitor the human […]

Why We Need To Make Consequences Cool
  • Opinion

Why We Need To Make Consequences Cool

Here at B&T, we have a trendy communal black leather jacket for staff to wear while suffering consequences.

Opinion

by B&T Magazine

B&T Magazine
Lovatts Media Acquires Nourish Magazine From Blitz Publications
  • Media

Lovatts Media Acquires Nourish Magazine From Blitz Publications

Lovatts Media has purchased Nourish magazine from Blitz Publications in a last-minute deal that has ensured the title continues to be published in Australia. Rachael Northey, CEO of Lovatts Media, believes the demand for high-quality niche magazines is growing rather than declining. Building on the successful 2017 launches of their popular mindfulness titles Breathe, Teen […]

Women In Media Profile: Elaine Herlihy
  • Advertising
  • Marketing

Women In Media Profile: Elaine Herlihy

If you've come here looking for Elaine Herlihy's famed scone recipe then it'll be the only disappointment you'll endure.

by B&T Magazine

B&T Magazine
Thrive PR + Communications Opens Fifth Office & Appoints New Staff
  • Marketing

Thrive PR + Communications Opens Fifth Office & Appoints New Staff

Independent PR agency Thrive PR + Communications has announced the launch of its fifth office, opening its doors permanently on the Gold Coast and making multiple team appointments. In response to client demand, and embracing the growth of Australia’s emerging innovation hotspot, the Gold Coast will be Thrive’s second Queensland location following the opening of […]

China Social Solutions Reveal The Massive Market Brands Are Missing
  • Partner Content

China Social Solutions Reveal The Massive Market Brands Are Missing

Advertising, in its essence, is about reaching the largest number of people, in the most seamless, creative way. However, reaching a large audience can often be the biggest hurdle, so how does a crowd of a few hundred million users sound? Weibo, China’s answer to Facebook, WhatsApp, Instagram and every other app combined, has hit […]

Partner Content

by China Social Solutions logo

How To Thrive In An Age Of Disruption
  • Opinion

How To Thrive In An Age Of Disruption

Has the age of disruption left you fearful? Well, you'll be singing Helen Reddy's 'I Am Woman, Hear Me Roar' after this.

by B&T Magazine

B&T Magazine
Monash University And Y&R Melbourne Launch Wristbands To Deter Drink-Spikers
  • Campaigns
  • Technology

Monash University And Y&R Melbourne Launch Wristbands To Deter Drink-Spikers

Y&R Melbourne has an innovative wristband on campus at Monash University that detect drugs by simply placing a drop of your drink onto the band itself. Designed for widespread use across festivals, events, bars, nightclubs and other venues where patrons are already accustomed to using wristbands, the ‘Sip Safe’ wristband is equal parts a utility, […]

Global Brand Events Agency INVNT Opens Sydney Office
  • Marketing

Global Brand Events Agency INVNT Opens Sydney Office

Brand events agency INVNT has announced it has expanded its operations to the Asia-Pacific region with a new office in Sydney. Originally founded in New York in 2008 by Scott Cullather and Kristina McCoobery, INVNT creates and produces brand engagements for every audience segment, including employees, customers, partners, investors, the media, and consumers. Cullather said […]

The Copyright Agency Invites Visual Artists To Claim Image Royalties
  • Media

The Copyright Agency Invites Visual Artists To Claim Image Royalties

The Copyright Agency is inviting Australian artists and their heirs to nominate about where their works have been published or used on TV to receive payment for their copyright-protected work as part of a month-long campaign. The Copyright Agency, which recently merged with Viscopy, is Australia’s national copyright licensing organisation for the publishing, media, surveying […]

Pac Mags’ Emily Sak Joins Shopper Media Group As Its First Data & Insights Chief
  • Marketing
  • Media

Pac Mags’ Emily Sak Joins Shopper Media Group As Its First Data & Insights Chief

Digital retail out-of-home media business Shopper Media Group has announced the appointment of Emily Sak to the newly created position of head of data and insights. The new role forms part of Shopper Media Group’s expansion plan to keep up with the accelerated growth that has seen its portfolio surpass more than 220 shopping centres […]

CX Lavender Appoints Business Development Director For Melbourne
  • Marketing

CX Lavender Appoints Business Development Director For Melbourne

Customer experience agency CX Lavender has announced the appointment of Michael Rummery to the role of business development director for Melbourne. Rummery (pictured above) was previously account director of client services at global marketing and digital recruitment firm Aquent, and has held roles at a number of talent agents and recruitment firms with a focus […]

The New York Times Appoints WeThinkMedia As Its Aussie Advertising Rep
  • Advertising
  • Media

The New York Times Appoints WeThinkMedia As Its Aussie Advertising Rep

The New York Times Company has announced the appointment of media representation agency WeThinkMedia to represent its advertising business in Australia. WeThinkMedia will be responsible for all advertising in the region, including print, digital, branded content, programmatic, and events. The partnership will be overseen by Tom Armstrong, vice president of advertising for The New York […]

The Future Of Influencer Marketing: More Than Just A One-Night Stand
  • Marketing
  • Opinion

The Future Of Influencer Marketing: More Than Just A One-Night Stand

Influencers are the new powerhouses in driving stock off shelves, but brands are yet to find the right recipe for successful collaboration, according to Guillaume Deront of Gleam Futures @ The Story Lab (pictured below). Here, he argues that marketers need to look beyond purely targeting an audience and channel their energy towards building long-term […]

Opinion

by B&T Magazine

B&T Magazine
Designing Cultural And Organisational Change
  • Opinion

Designing Cultural And Organisational Change

In this guest post, Bronwyn Van Der Merwe (pictured below), managing director of Fjord Australia and New Zealand (part of Accenture Interactive), details the four traits of a ‘living business’ – something she believes organisations have to become in order to transform successfully. The digital age has created a plethora of challenges for modern organisations, […]

Opinion

by B&T Magazine

B&T Magazine
Facebook founder and CEO Mark Zuckerberg arrives to testify during a Senate Commerce, Science and Transportation Committee and Senate Judiciary Committee joint hearing about Facebook on Capitol Hill in Washington, DC, April 10, 2018. / AFP PHOTO / SAUL LOEB        (Photo credit should read SAUL LOEB/AFP/Getty Images)
  • Media

Free TV Calls For ACCC Oversight Of Facebook & Google

In a submission lodged with the ACCC inquiry into digital platforms, industry body Free TV today called for greater regulatory oversight of Facebook and Google. The FreeTV submission identifies a number of key areas of concern: Heavy regulation on traditional media providers and almost none on Facebook and Google Questionable claims about the reach, viewability, […]

APN Outdoor Confirms Retention Of Three Key Contracts
  • Media

APN Outdoor Confirms Retention Of Three Key Contracts

APN Outdoor has used its annual general meeting to announce three key contract renewals: Transport for Brisbane, Transdev Melbourne and Adelaide & Parafield Airports, for multiple years. Company CEO and managing director, James Warburton, said: “These contracts represent an important part of our advertising offering. The far-reaching impact they provide delivers a compelling proposition and cements our commitment […]