Mi3 Audio Edition

Host: Nadia Cameron, Publisher | Editor – Marketing Marketing teams have become incredibly good at optimising campaigns and communications through ever-more precise data and measurement tools. But have we been pursuing precision and ROI to the point where we’ve optimised and measured ourselves into oblivion? That’s a key question that lies at the heart of the latest Mi3 podcast episode. The second question immediately alongside it: If modern measurement tools are telling us what worked in the past, how do we find the complementary intelligence that’ll help us predict the customers and trends that might drive effective strategies for future growth? There’s no doubt the rise of digital media and performance marketing have brought marketing teams extraordinary advances in accountability. But for the likes of Les Binet, Mark Ritson and James Hurman, such precision puts brands in danger of losing sight of how to generate future demand. How to identify which customers are worth winning longer term is a key piece of the value intelligence puzzle, says social and behavioural scientist, Ross Honeywill – and he’s pitching his 5.5m next economic order (NEO) consumers as the predictive bellwether for early adoption as well as less price-sensitive customer mindsets. For David Jones’s GM of marketing and retail media, Melissa Polglase, escaping a short-term view is tough in an economic climate where growth is hard to come by. “The digital world has allowed us to track ROAS conversion at a really microscopic level, and that can be quite addictive, particularly in a very choiceful economy now, where customers are really being quite prudent in how they’re spending,” she agrees. Moreover, platforms are great at “driving an outcome to an audience within a platform”, continues Polglase. Getting past that firstly means staying true to the marketing strategy. But it also means adopting a more customer-oriented mindset, says Polglase. For example, focusing on a more affluent customer who identifies with experiences and quality was a critical step in designing the retailer’s customer loyalty program – and such care has paid dividends, including a +40 per cent better transaction value than non-member shoppers. “It really comes down to putting customer strategy ahead of channel optimisation and having the leadership in place to be bold, and to be able to continue driving short-term results while asking long-term questions,” Polglase says. OMD chief strategy officer, Rob Frost, agrees digitisation has tipped the scales too far towards optimisation. “What we were doing is taking any metrics we could get and saying this was a proxy for something else that happened,” he says. “At the same time, what we started to do is apply those metrics to any piece of activity beyond direct response as well. So we started thinking, how can we do this for our brand? Then we fell into this trap of short terms.” One of the critical things about consumers with a NEO mindset is they choose what matters to them, explains Honeywill. Unlike traditional consumers, they’re also socially progressive, independent minded and curious about what comes next – and importantly, “are more ready to spend and spend more frequently and pay more for a difference they believe in”. While NEOs appeal, Frost is quick to warn against “oversegmenting” for the sake of it, particularly in the upper funnel. “If we know that speaks to 95 per cent of your out-of-market customer base at any point, we should be thinking about building up that distinctive brand for the long term, however possible. But there seems to be really interesting use cases for any segmentation, especially when we start to look at that predictive element of how we do that in the mid and lower funnel,” he says. One of the things Omnicom is looking at is building what Frost dubbed “a brand brain”. “This would allow us to pull in real-time [customer] signals and understand not just what's happened previously in all of your campaigns through your modelling, results and metrics, but start to get an idea of how those real-time signals are starting to impact what happens in the lives of consumers or within your categories,” he says. “If we have a way of building these brand brains and repositories of that kind of data and information, and can find smarter ways of asking the right questions and pulling from that, we can get closer to doing something different – and that hopefully better predicts a potential outcome than we ever have done before.” See omnystudio.com/listener for privacy information.

This year’s Nine Upfronts gave brands and media buyers a decidedly different narrative to engage in, and it wasn’t just down to the high-production, immersive format of its showcase. Nine put forward a confident content slate that exuded what the locally owned and operated media company does best: Breadth of Australian programming, talent and connection across sports, entertainment, drama, news and lifestyle. But secondly, it revealed the engine fuelling how it’s taking all this to market in 2027 has been strategically recharged. As Nine’s chief executive officer, Matt Stanton, and chief sales officer, Matt James, told Mi3 in a podcast recorded in the immediate afterglow of the Upfronts event, Nine has become a very different media company in the last 12 months. Having tackled the heavy lifting on portfolio mix and strategy, it’s putting forward a refreshingly firm, unified proposition that covers broadcast to streaming, publishing and digital-out-of-home. Propelled by its most integrated owned and operated media offering to date, buoyed by the $850m acquisition of digital out-of-home player QMS, Nine is pitching a ‘sofa to street’ cross-platform play for advertisers, supported by a single media planning and buying platform, Nine Neo. This go-to-market strategy is designed to bring cohesion to how brands trade and measure the effectiveness of what Nine has to offer. And it’s backed by significant investment into unifying audience targeting and insights extending from screens into physical locations and commerce. The upshot: Nine is pitching itself as a strong contender against big tech and the global streaming platforms, and the only Australian-owned, fully integrated media network that can connect brands to audiences across their entire day. It’s a crucial time to shore up this full-funnel, multi-channel proposition in market. Hundreds of millions of ad dollars have exited the linear and broadcast industry over recent years, reallocated to digital platforms and walled gardens. There’s active debate right now around whether it’s the responsibility of government, media buyers or brands to proactively back Australia’s domestic media industry. Many agree supporting local-first content and journalism is crucial to societal cohesion and cultural connection. But ultimately, media companies have to demonstrate they have the audiences, scale and solid returns on investment to win ad dollars. That’s what Nine is backing itself to provide. Stanton pointed to the power of the State of Origin, Olympics and Married at First Sight in delivering cultural moments as his first proof point. “It's very important to have scale and diversity in this marketplace,” Stanton continued. “If you are a single platform – and it doesn't matter how big you are – it’s very difficult to compete with some of the big global tech players because obviously, they have the investment of a whole global team versus a local team like ours. So it's really important to get these three business units – streaming and broadcast, publishing, and out-of-home – working closely together, but also in their own right as well. They have to stand on their own two feet is the way I think about it, but then they've also got to collaborate when they need to collaborate … That's the only way we are actually going to be able to compete with the big global players. “That’s very clear to me, and the portfolio changes we’ve talked about are really significant. Now, it’s about execution, and using these three big assets at the right time, either individually or cooperatively.” Then there’s strength in fully owning and operating such assets. Nine has a “powerful” ability to unify and coordinate these all the way from content to data, technology, audience and cultural moment, said James. “It’s a big full-funnel proposition that enables us to start from brand to covering the breadth between awareness and transaction,” he said. “This is also only going to work if you fundamentally have your strategic destiny in your own hands. This requires unified content delivery systems. It requires unified IDs around our 22 million audience base. And it needs all of the investments we are making in the technology to develop this the right way. “Everything we’re developing comes with a long-term perspective, which I think is another one of our fundamental differences. I appreciate there are lots of partnerships going on in that [out-of-home] marketplace, but you can't make these kinds of investments and unify that in the way we're unifying our data, and even our content platforms across 9Now and Stan.” James additionally points to the heft of Nine’s assets today as evidence it can deliver this to advertisers. “They really do reach most of Australians, and anything we now do, we can develop from a long-term perspective, particularly as we embed outcomes-based reporting,” he said. Nine’s commitment to longevity extends to the content it’s investing in. Its recent NRL deal to 2034, along with a freshly minted seven-year EPL deal, are examples. Nine also has rights to the Olympics through to Brisbane 2032. Demand for these marquee events has never been bigger, James added. “We have properties such as The Block, MAFS [Married at First Sight], and news, which clearly anchors on consistency,” Stanton said. “Advertisers know what they are getting; it’s very consistent, trusted and at the heart of Australian cultural moments.” Under Nine’s cross-platform strategy, many loved content offerings are also now showing up across its broader asset base. “If you just put one bit of content on one bit of platform, it will not grow,” Stanton commented. “We now have the EPL and the rights on the streaming side on Stan, but we can put it onto Nine and 9Now as well. We can push it through the publishing business and outdoor as well … From an advertising point of view, when you can do that, it’s very powerful.” See omnystudio.com/listener for privacy information.

Host: Nadia Cameron, Publisher | Editor – Marketing There is a constant refrain in the marketing industry and it’s this: That many marketers are brilliant at what they do, but very few are brilliant at marketing the actual profession to the CEO, CFO, boards and executive peers. Lying at the heart of this issue is marketing’s persistently problematic commercial nous and its all-too-commonly crippling ability to connect the dots on what it does to business strategy, growth and outcomes. “It’s something that does frustrate me generally about marketing as a practice: The attribute would be the notion of commercial curiosity. By that I mean a deep commitment to really understanding the commercial contribution of marketing and how every interaction and activity contributes to the bottom line,” says Stuart Tucker, former Hourigan Partner, chief customer officer of Hipages and senior executive in brand, sponsorship and marketing at Commonwealth Bank, Aussie Home loans and Optus before that. “Too often, marketers are guilty of not really knowing the flow of money and not really knowing how they contribute to that. And they use it as a bit of a bit of an excuse, saying no one really understands me at the boardroom or the CFO wants to cut my budget all the time. To nurture a genuine commercial curiosity would be one attribute I would encourage every marketing team to get stuck into.” Per recent figures from an Australian Marketing Institute survey, 69 per cent of marketers admit they need better financial fluency and only 12 per cent feel confident interpreting financial data. In addition, only 35 per cent of marketers say they’re working regularly with the finance department. This juxtaposition of what marketing does and commercial delivery is also a frustration point for Nicki Kenyon, one-time CMO of Visit Victoria. A former director of Nine Powered, APAC regional lead for Mastercard and business partner for Meta, Kenyon is now a chair and non-executive director for Big4 Holiday Parks and Australian Grand Prix and sits on the Fenwick Software board. “It is the bugbear in my career and continues to be, and it would be simply this: Marketing needs to be linked to business outcomes, and be a driver of growth every single time,” she says. “Marketing for marketing's sake is just irresponsible and wrong. If there isn't a clear business goal, then why are we doing?” In this latest Mi3 podcast episode, these two rare individuals to have trodden the boards as practising marketers, as well as executives, advisors, educators and board members, explore why we’re still having to defend marketing’s role, budgets and strategy. They also reflect on the big shifts in marketing they’ve lived through that have made it both easier and harder to set and meet expectations of modern marketing effectiveness. Both Tucker and Kenyon, for instance, urge marketing leaders to sidle up to their CFO tomorrow. “Work with, not against, the finance team. They can and will be your best friend,” said Kenyon. “We've got the tools, we've got the passion, we've got the vision. We can do everything a CFO wants and needs us to do. But instead of working with finance, we tend to work against finance because they're the ones that can cut us off. “The number of times I've discovered the disconnect between a business strategy and a marketing strategy – it’s mind-numbing that those two things are not absolutely linked.” Neither Tucker nor Kenyon has any time for the delineation between brand and performance marketing either. Tucker labels such distinction “absolute rubbish”. “They work in concert, they work together. If your brand is good, your performance works harder. If your performance is good, your brand works harder,” he comments. “I saw it at Hipages: We saw a significant increase in brand metrics and a significant decrease on our reliance on performance.” For Kenyon, the distinction made between brand and performance is commonly clouding effectiveness. “The depths of academia that dive into analysis and hypotheses and all the data on this stuff, particularly led by people who have never a day spent their lives in a practicing marketer's seat, is generating a lot of hype, it's generating a lot of conversation, and it's generating a lot of revenue for those companies that are specialising in attribution and metrics,” she argues. “It's important, but it's a double-edged sword. Again, it comes back to what are we trying to achieve: What is the goal? The goal, for example, is not reach. Reach is a media buying tool. It is not in and of itself a goal. So naming what the goals are, then defining what the metrics are to measure the effectiveness of what you're doing in pursuit of business goal is the crux of it.” All this and a lot more wisdom through the mics – tune into the latest Mi3 podcast here. See omnystudio.com/listener for privacy information.

Host: Nadia Cameron, Publisher | Editor – Marketing Every financial brand talks about backing small business. American Express has spent 14 years proving it. Now it's bringing that commitment together under a single organising platform: Because it Matters. The American Express Because it Matters platform unites the company's long-standing commitment to small businesses under one strategic idea. From Shop Small to Sporting Small, it brings together multiple initiatives around a shared belief: that behind every small business is a person, a family and a future worth backing. AMEX's latest push comes as many small businesses continue to navigate rising costs and softer consumer demand. Yet they remain the backbone of the Australian economy, employing more than five million people and playing a critical role in the vibrancy of local communities. AMEX research across 4,000 consumers reflects this, with 86% agreeing small businesses help create more connected communities and 93% recognising their contribution to local area vibrancy and distinctiveness. An organising platform first and foremost, Because it Matters shifts the conversation from payments and products to the people, effort and resilience behind every business. Rather than starting with cards, payments or rewards, the platform starts with the business owner and what matters most to them. That philosophy extends into media through Sporting Small. Working with Kayo and UM, American Express and Dentsu Creative transformed the familiar "back in a moment" holding screen into live-style crosses to Australian small businesses, using FOX Sports talent and QR codes to drive viewers directly to participating merchants. Rather than simply buying attention, the idea turns media investment into something of value for the businesses AMEX is backing. "Intention has to move to action and how we are truly backing small businesses," says American Express VP Brand and Customer Marketing, Naysla Edwards. "This year we asked ourselves: How do we put businesses at the centre of what we're doing? How do we make it possible that they are the main character of this initiative? So we shifted all of our investment really into giving that back to small businesses." The creative work was informed by conversations with 150 business owners across Australia, uncovering the small, often invisible things they do because their business matters deeply to them. Those personal truths became the foundation of the campaign. Take Bin Master Skips owner Terry Hayward. "On Fridays, Terry Hayward cleans his truck like he's going to sell it the next day. And you know that truck is going to get very filthy the next day. But it's that love for your business; you're so proud of your truck that gets you in and out through the day," Edwards says. Or Hudson's Bakery founder Sandra Hudson. "When she talks to you about how she sources the ingredients, I was like, 'Oh my goodness, Sandra, that is a lot of effort'. But that's why that bakery is so successful," says Edwards. For AMEX, the work goes beyond marketing. Teams regularly visit small business owners to better understand their challenges, opportunities and ambitions firsthand. "Everyone from our country manager, and all of us, go and visit small businesses and talk to them, and do it on a regular basis," says Edwards. "Don't just talk to yourself. Make sure you're actually talking to the person that has the real information that's going to drive the meaningful change for them, which is the business owner." That long-term commitment is also delivering measurable outcomes. But Edwards is equally focused on the commercial returns the platform creates for AMEX. "Growth is one of the pillars of our company strategy, and backing small businesses and helping grow small businesses is part of that," she says. "But we also need to go back to linking it to commercial outcome; that's very important." To support this, Edwards has built a full-funnel measurement model to evaluate the effectiveness of Because it Matters as it continues to evolve. "We can actually see the improvement in brand consideration, the funnel going into evaluation, and then the conversion at the bottom of the funnel," she says. "Which ultimately, is growth for our business. And what is most important to us: It's great to do all that, but it's the loyalty. It's the retention. Those businesses stay with us for the existence of that business. Fortunately for us, our attrition levels are very low in the B2B space." See omnystudio.com/listener for privacy information.

Host: Nadia Cameron, Publisher | Editor – Marketing Not all reach is equal and neither is our level of attention: We know it instinctively, we’re told it, and now we’re getting better understanding into how to apply its qualitative impact to achieve mental availability, brand equity and sales uplift. The good news for digital out-of-home users is that the channel not only commands solid, bankable doses of total attention, it’s delivering the short and long for brands more efficiently than other digital, scrolling formats. QMS and Amplified have just dropped the latest landmark research in a multi-year program of work to gauge how attention is playing out in the digital out-of-home sphere. And it’s an eye opener for what DOOH can deliver, revealing surprisingly distinctive attributes that are sure to get tongues wagging in our industry. What’s more, the new study maps attention based on the principles of active, passive and non-attention, leveraging models and methodologies to ensure these findings can be understood and applied within the broader digital media ecosystem. The first and arguably most significant finding: Digital out-of-home has a dual effect, not only helping to build short-term advertising strength but also mental availability. “We found this situation where both metrics moved similarly together, which was very surprising to us, but also amazing,” said Amplified founder, Dr Karen Nelson-Field. It’s a nod to Mark Ritson’s ‘bothism’ argument – yes, brands actually can get both if they find the right vehicle to deliver them. “This is the first time I've seen where, in fact, it does drive both in the same platform,” said Dr Nelson-Field. “You can get your short and your long.” In complement, and arguably the stat most likely to upset the industry apple cart: DOOH can do this with just 1 second of active attention. That’s less than half the 2.5-second threshold established for scrolling, “fast decay” digital formats. Such results certainly had OMD chief planning officer, Thad King, rethinking both the right levels of attention required, and the role DOOH can play against a more diverse set of campaign objectives. “Think about out-of-home: It's visible from the moment you see you see it. The brand is visible; the message is visible,” he commented. “I think it stands to reason why it doesn't need as much attention. All the stuff that's been established previously around the two-and-a-half seconds to establish mental availability is still true, because it's for formats that storytell; you definitely need that level of attention for those storytelling formats. But it's something we probably haven't thought of before. “The level of attention that's required to drive outcomes from both a short-term and a long-term perspective is definitely going to help us potentially reframe some of the thinking in terms of out-of-home and the role for the channel at different stages.” That’s not the end of it either. The study also shows the longer time in view for one of these billboards or street furniture assets, the more active attention it earns, stacking both passive and active attention in tandem and further strengthening outcomes. “This is not saying that passive converts on its own. To be honest, we feel like there are a lot of publishers who do get a lot of passive attention that say it's highly valuable from a conversion perspective. It's not,” argued Dr Nelson-Field. “What we see here is that passive is leading to more active, and active is related to the outcome; it's related to the sales or related to the equity, the brand equity.” The power of this new data also comes from the fact this was an expansive study, with large format billboards in Sydney and Melbourne, City of Sydney CBD assets and a mix of pedestrian and vehicular traffic all in the frame. “We measured everything from overbridge sites to monopoles, sites that were on the sides of buildings, A sides, B sides. We wanted to really make sure we had this wide variety of different types of sites. The reason behind that is to give us a really thorough understanding of our assets, but also to take away bias,” said QMS chief strategy officer, Christian Zavecz. “We didn't want to sugarcoat it and just do our most premium sites. We felt that was really important to understand the contribution and relative performance of all of our assets.” See omnystudio.com/listener for privacy information.