Industry Not Prepared For Impending Privacy Changes Reports Arktic Fox Study

Latest Arktic Fox Digital & Marketing in Focus study finds Australian brands seeking growth amid uncertain times and industry challenges from privacy requirements.
Now in its third year, and formerly known as the “Marketing State of Play” study, the report offers a rich data set that captures how the marketing and digital industry is changing, the impact of industry challenges like privacy, marTech, digital transformation initiatives and a lack of focus and prioritisation on developing teams despite talent shortages. The headline results paint a revealing picture of the state of marketing and digital, including:
• Growth and privacy now top list of priorities and challenges
The growth agenda for the organisation is one of the top priorities for 78 per cent of digital and marketing leaders and their teams in the year ahead, above developing their first-party data strategy (55 per cent) and brand development and embedding brand purpose (54 per cent). Growth has moved to top the priority list since last year, showing the impact of challenging economic conditions. For organisations generating in excess of $100m in revenues, digital transformation trumped brand development and embedding brand purpose as a key priority, with 55 per cent of leaders suggesting it was one of their top priorities in the year ahead. Balancing short- and long-term priorities are the main challenges for two-thirds of respondents, demonstrating the balancing act leaders are facing to deliver short-term performance outcomes while building for the future. In addition, some 60 per cent of respondents struggle with resourcing and budget contraints, showing marketing and digital leaders must be laser focussed on priority areas and investing for impact.
• Executive teams holding back digital transformation
There are many benefits that flow from digital transformation; however, almost 40 per cent of leaders say the knowledge of executive teams is a key aspect they are finding difficult to drive digital transformation, topping the list. It reveals that skepticism, fear and knowledge gaps of those at the top are stymying these vital initiatives and progress. On the key objective of digital transformation to embed digital across the business “Today we still see far too many leaders believing that digital is someone’s role as opposed to digital capability needing to be embedded across the organisation to become central to the business strategy and operations. When a separate digital or ecommerce function exists that is siloed from the rest of the business, it sends a message that understanding digital is not my job or responsibility and stifles teams’ ability to build capability and develop skills,” said Arktic Fox director, Teresa Sperti.
• The growing demand for CDPs in the marTech stack
The demand for CDPs has doubled since last year’s study, with 40 per cent of respondents prioritising investment in this part of their marTech stack in the next 12 – 18 months, even as overall marTech spend is softening. However, platform integration is still the biggest challenge teams face. The study also found that marTech strategy and implementation is the second biggest skills gap within teams across the country (38 per cent). On the marTech challenges and the need for alignment around outcomes “Alignment is critical. Marketers and digital professionals need to connect the marTech ecosystem to back-end platforms and ensure connectivity between platforms to drive results from their marTech stack. Developing an effective partnership with IT to deliver common outcomes is key to embedding and integrating platforms and delivering ROI as is building internal knowledge and capability within the team,” said Arktic Fox director, Teresa Sperti.
• Talent shortage not being properly addressed
There’s a well recognised talent shortage; however, brands are not investing in sufficient training and development to help meet the shortfall, with lack of time, space and priority the major reasons. Almost half of leaders have no set training budget and nearly half of all respondents (47 per cent) revealed that the biggest inhibitor of developing and training teams is themselves as they don’t prioritise it as a team. Even though the market isn’t as tight in 2023, organisations will still have to work very hard to engage top talent based on a set of new and evolving, post Pandemic ‘needs’. Candidates are demanding flexibility, seeking strong value & purpose alignment, career opportunities and investment in training and development which this study suggests is not currently being prioritised by many businesses. It remains exceptionally important to candidates to be able to continue to upskill and broaden their knowledge and expertise.”, said Jo Krause, Manager Digital & eCommerce recruitment at Six Degrees.
• Tighter measurement and budgets being reduced
More than a third (35 per cent) of respondents report their budgets being reduced over the past 12 months, and it’s no surprise to find there’s a growing need to drive results and efficiencies. Just over half of respondents say better measurement and more focus on test, learn and optimisation is the focus in the year ahead to improve performance across their operations.
• Urgent need to address skills gap in data capabilities
A capability gap in data and analytics skills is holding back businesses. Only 35 per cent of leaders believe data literacy is strong within their teams. Data and analytics is the biggest technical skill gap identified within teams, which has consistently topped the list for three consecutive years, with measuring performance and outcomes also featuring prominently in the list of skill gaps. However, more than half of leaders said customer data strategy and better utilisation of first-party data is a key priority, showing a significant gap between business priorities and capabilities.
• Industry remains underprepared for looming privacy changes
A seismic change is looming on the privacy front, yet only 23 per cent suggested they were focussed on improving their brands compliance with data privacy over the next 12 – 18 months, suggesting many won’t be prepared to operate in the coming privacy-first environment.
• Ecommerce lacks priority despite customer uptake
A dedicated section on ecommerce is new to this year’s report, examining how brands are grappling with the challenges of building maturity as omni-channel businesses and devising strategy to guide future initiatives and realise the opportunities of this growing channel. Only 8 per cent of FMCG and CPG brands believe ecommerce is perceived internally as an integral channel for their organisation to engage customers and distribute their product or service, despite the huge change in consumer buying habits over the last few years. While for retailers, this stood at 55 per cent. For retailers one of the biggest barriers impacting growth is technology limiting flexibility and agility (51 per cent), while 39 per cent say they’re just too slow to adapt and respond to changing conditions. For FMCG and CPG brands the biggest barrier to growth was the organisation’s focus on protecting and maintaining the core (50 per cent). However, there are significant differences in priorities across categories, with 61 per cent of retail respondents saying improving the end-to-end experience is their top priority, while almost half of FMCG and CPG brands are leaning into channel expansion.
Mixed maturity on ecommerce and lack of strategy focus
“It’s not uncommon to see brands struggle to free up funds to invest into new growth areas like ecommerce. Entrenched forecasting and budgeting approaches, a lack of understanding of the importance of the ecommerce channel by the executive and a lack of appetite to invest appropriately to build capability and important foundations sees teams operating with one hand tied behind their back which inhibits ecommerce reaching its full potential. Building ecommerce maturity takes time, it requires focus and investment over a longer time period and shouldn’t be solely measured on the basis of returns today as it helps future proof the organisation as a greater share of spend will shift online over the next decade,” said Arktic Fox director, Teresa Sperti.
Please login with linkedin to comment
Latest News

REVEALED: Australia’s Greatest-Ever Ad!!!
You voted and now B&T can reveal Australia's greatest EVER ad! Yes, Ali Baba Kebabs can feel rightly aggrieved.

The Royals & Ryvalmedia Win Big In B&T’s Top-Performing Agencies For November
Which agency chiefs will be collecting their Christmas bonuses? Discover the truth with this 'who's hot' barometer.

George P. Johnson Announces Leadership Changes
Changes at the top at George P. Johnson today. The middle and the bottom given the order to stand down.

Monday TV Ratings: The 1% Club Scores Seven A Win
Game shows continuing to rate well with TV viewers. Yet, that's not to say we need Andrew O'Keefe back anytime soon.

Free TV Comes Out Swinging Over Sports Rights After Amazon Snares The Cricket
Industry body says free TV sports rights are under threat. Meanwhile Wallabies declare they've all but given up.

Westpac Shows Optus How To Apologise
Westpac delivers on its crisis communication. Also see Westpac board trying to save their collective arses.

Triple J Announces Hottest 100 2023 Dates
This year's Hottest 100 deets announced. With B&T predicting big things for Nollsy's KFC ad.

A Professional Cheese Sculptor Stars For Wacky Ads For US University
Hating the job right now? These uni ads could (A) inspire you to new things or (B) give you a laugh, albeit a brief one.

Don’t Be THAT Perfectionist….Enter B&T’s 30 Under 30 Awards, Presented By Vevo, Now!
Work with people who endlessly say "things were better in my day"? Sounds like you're a real contender for 30 Under 30.

We Are Warriors & R/GA To Produce City Of Sydney’s Calling Country & New Year’s Eve Fireworks
Social Indigenous Enterprise We Are Warriors (WAW), supported by creative innovation studio R/GA Australia, has been selected to produce the City of Sydney’s New Year’s Eve Calling Country live performance as part of the 9pm firework show. Lead image L-R: WAW co-founders Ben Miles & Nooky. The performance will feature a special Welcome to Country […]

Data Is King. So How Can Marketers Survive Privacy Reforms?
There's a fine line between proper use of customer data and a $50K fine from the ACCC. Save your cash with this read.

Chery Launches New Tiggo 7 Pro In Australian Market With Creative Campaign Via Chello
Chinese EVs continuing to flood into the Aussie market. Clearly no reciprocal agreement with our wine and barley.

Isuzu UTE Extends A-Leagues Partnership Through To 2026
Isuzu UTE extends its A-Leagues partnership. Also desperately hoping the fans don't behave like dickheads.

Seven Network Unveils New Advanced Advertising Division
Seven unveils its new advanced advertising division. No sign of official scarlet red team tracksuits, however.

“Give An F About the Flags”: Surf Life Saving Australia Launches Summer Campaign Via Banter
Every Australian should know to swim between the flags. That and Bradman's average and most of the words to Khe Sanh.

Toyota & HCLTech To Appear On Aussie Cricketers’ Shirts This Summer
You can almost hear leather on willow with this news. Unless someone's being attacked with a cricket bat in your office.

G Squared Bolsters Paid Media & Search With Key Hires
G Squared announces key hires in its paid search team. Although we appreciate not everyone's a fan of paid search.

“Extinction Greenwashing”: Supermarkets Target Of ACCC Complaint Over Misleading Salmon Claims
Yet again claims about Tasmanian salmon catch watchdog's ire, as chickens declare we're ridgy-didge.

Droga5 London Launches First Campaign For ADV New Motorcycle
Unsure if you're in the throes of a possible midlife crisis? Watch this motorbike ad and learn the horrible truth.

Mediahub Expands Into New Zealand Market
Mediahub unveils its New Zealand plans. And it only took the locals four minutes to mention the rugby.

It Takes A Village: Havas Drives Off With Avis Budget Group’s Media & Earned PR
There are few greater joys in life than flogging the shit out of a rental car, is there?

Amazon Prime Secures Rights To Next Cricket World Cup
Judging by the acrimony, sledging & hatred of last month's Cricket World Cup, the next one's shaping up to be a ripper.

Limited Tickets Still Available For First Ever Industry Pantomime
With just over 24 hours to go until the world premiere of Addy Lala and the Mood Tea Thieves, limited tickets are still available for the pantomime, which will run for one night only at the Everest Theatre in Sydney’s Seymour Centre on December 5th. All in the industry are encouraged to come along to […]

Palin Communications joins GlobalCom PR Network
Specialist Australian health PR agency, Palin Communications, has joined GlobalCom PR Network with a view to delivering meaningful, consistent, impactful, global health campaigns across a range of countries and regions.

Axe-Wielding Eric Andre Stars In Opera GX Campaign, Via Waste Creatives
Irreverent campaign for Opera GX, the browser for gamers, sees actor and comedian Eric Andre confronting people using “boring” browsers

Make it your way at Highpoint Via Cyclone Creative Agency
Highpoint is inviting Melbournians to embrace what makes them different, through their ‘Make it Your Way’ campaign via Cyclone Creative agency.

2045: A New Melbourne-Based Creative Agency Founded by Tim Evans and Nick Auditore
2045, a Melbourne-based creative agency founded by Tim Evans and Nick Auditore has just launched. The agency takes its name from the year futurist Ray Kurzweil predicted organic and artificial intelligence would converge. Lead Image: 2045 Team Evans was formerly a Partner and Executive Strategy Director at DT (now AKQA), before co-founding B.B.E in 2015. […]

Pengu Dances Their Way Through New Film by electriclime°
Production house electriclime° have linked up with Riot Games to create a new film to celebrate the launch of Teamfight Tactics Mobile (“TFT”) in Asia Pacific.

National Breast Cancer Foundation Announced as Charity Partner For NYE Sydney
The National Breast Cancer Foundation has been announced as the Charity Partner for Sydney New Year’s Eve. The Australian not-for-profit organisation is represented by the pink ribbon and raises money to fund world-class research towards its vision of zero deaths from breast cancer. Research that saves lives through a better understanding of how to prevent […]

Sunday TV Ratings: Brits Dominate With Annika, Joanna Lumley And David Attenborough Making Top 10
Sunday night strangely dominated by UK-made content. That said, Piers not getting a heap of love over at Sky.

Emporium Unveils Unique Christmas Campaign: “Every Tradition Starts Somewhere”
This holiday season, Emporium Melbourne has announced its festive creative campaign that celebrates and encourages the Melbourne community to embrace their personal ‘untraditional traditions’ – the unique traditions that make Christmas truly special for them, and their family. The campaign’s tagline, “Every tradition starts somewhere”, reflects Emporium’s commitment to embracing, inspiring and applauding diverse traditions […]

Stop Being A Water Waster! Sydney Schoolboy Urges Everyone To Save Water, Via It’s Friday
Planning a staff dunking booth this Christmas? Not too late to switch to 10-pin bowling with this water save campaign.

Reddit Updates Conversation Placement Ads Formats
Reddit has announced updates to its new ads placement with Carousel Ads and Product Ads. These new units, placed in the heart of Reddit discussions, provide an even more dynamic and compelling way for advertisers to scale to relevant audiences, deliver deeper value to users, and drive stronger, full-funnel performance among the hundreds of thousands […]

Full Throttle Into 2024: Drive.com.au Announces 12 New Products In 2024 Upfronts
Automotive Network Drive has announced its 2024 upfronts, its biggest in more than a decade, with a suite of more than 12 new products that underpin its vision to be the number one automotive network in Australia. Now in its 27th year and with a monthly audience of 2.45 million, Drive is leveraging its reputation […]

Journalist Tegan George Suing Network 10 After Being Left With “Trauma” From Bushfire Reporting
It's been a rocky road for many people & agencies in 2023; however, it's been all sunshine & rainbows for 10's lawyers.

As Big Spenders Flee, X Pivots To SMBs To Fill Ad Dollar Deficit
Elon's halo continues to slip. Joining Albo's, Harry's, Meghan's and Optus' similar downward trajectory.