Aussie businesses are not data-driven: PwC outlook

New PwC Entertainment and Media Outlook 2013-2017 report says advertising across online and mobile channels will be fastest growth areas

Many Australian businesses claim to be data driven but are in fact using information to support existing beliefs rather than achieve new and valuable consumer insights that provide a competitive advantage, a senior PricewaterhouseCooper partner claims.

The comments follow the release of PwC’s latest Entertainment and Media Outlook 2013-2017 report, which looks into the state of different media segments in Australia and their future growth and revenue potential.

According to the consulting group, Australia’s entertainment and media market will grow 13 per cent over the next five years to 2017 to total revenue of $35.7 billion. Consumer spending on entertainment and media products and services will also climb from $19.4bn to $22.6bn over the same timeframe.

When it comes to advertising spending, the group forecast online and mobile advertising to represent the highest growth sectors, increasing annually by 44 per cent and 25.7 per cent respectively to 2017. Interactive games, especially on mobile devices, will be a huge contributor, Pwc stated, with a compound annual growth rate of 3.4 per cent to reach $1.6bn by 2017.

The report also highlighted mobile Internet access as a major area of development and forecast revenues in this channel to grow 12.5 per cent year-on-year between 2013 and 2017.

Among the biggest statements made in the research is the criticality of data in staying competitive. PwC technology, infocoms, communications and entertainment lead, David Wiadrowski, said organisations must harness consumer data to develop new business models if they’re to meet the needs of the all-important individual and stay relevant.

PwC labelled consumer big data the “new rivers of gold” but claimed most organisations are still using access to data to support pre-existing theories rather than achieve fresh insights that could drive competitive advantage.

“Many Australian businesses already believe they are data-driven when in fact they are ‘data-after’ – using data to support preferred, tightly-held, existing beliefs,” he claimed. “Data after promotes a ‘do-nothing’ approach, which in a difficult environment is an excuse to do nothing.

“With data, where the sector needs to step up is in understanding how to structure and use the data to develop new, more agile business models.”

However, Wiadrowski recognised the complexity of the data issue was intensifying because “organisations now operate in a global market against global players, many of which like Google and Facebook have data in their genes”.

“With an overwhelming amount of unstructured data it will be easier said than done but the consolation is that the tools and techniques that can help, such as processing, bandwidth and storage, are getting cheaper,” he added.

Another key challenge in the quest to better utilise data is rising concern about appropriate usage. As previously reported in CMO, Australia’s new Privacy Laws will come into effect in March 2014 after being introduced and passed by parliament in 2012. Alongside the overarching legislative reforms are mandatory data breach notifications, which will require businesses to notify of any ‘serious data breaches’ or risk fines of up to $1.7 million.

The Association for Data-driven Marketing and Advertising (ADMA) has condemned the government’s plans for compulsory data breach notifications on top of the new privacy laws, claiming these are unclear and will place an unbearable administrative burden on hundreds of thousands of organisations.

Consumers are also concerned about privacy. According to a recent Ovum survey, most Internet users want an end to tracking personal data, while consumers surveyed for Infosys' new Engaging with Digital Consumers found Consumers want banks to use big data but cease from access their social profile.

The PwC Media and Entertainment Outlook 2013-2017 report will be available online from 3 July. Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

Signup to CMO’s new email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

4 key findings on the state of B2B marketing

The ​2016 B2B Marketing Outlook Report​ was recently published by Green Hat in conjunction with ADMA for the sixth consecutive year. It highlights the most significant trends from 2015 and shows B2B marketers what’s in store for the year ahead.

Andrew Haussegger

Co-founder and CEO, Green Hat

Why app engagement must be personalised

Research from Nielsen late last year reported Australian smartphone users over the age of 18 spend 33 hours per month in apps, and a mere four hours per month in browsers. But what does it take to actually maintain an app customers will engage with?

Rob Marston

Head of Airwave, A/NZ

Customer experience investments more vital than ever

The global commodity slump has hit Australia in the last few months. Companies that obsess over these developments might be tempted to cut spending on customer experience (CX) programs. Here's why that's a a terrible idea.

Harley Manning and Thomas McCann

Research leaders, Forrester

what does this article means when it refers to "elocker technologies" ? Thank you. I am not sure what this is,M

Martin W. Jordan

Adelaide Zoo deploys iBeacon technology to enhance visitor experience

Read more

Now you make creative Facebook ads

Mike Smith

Why AAMI turned to Facebook mobile and segmentation to drive brand favourability

Read more

Rob - great article. Here at Pure Oxygen Labs we could not agree more. When considering retail mobile apps deep linking is woefully unde...

Scott

Why app engagement must be personalised - Mobile strategy - CMO Australia

Read more

Project Leader?? Kim Portrate is one of the most ineffective leaders I have ever had the displeasure of meeting. She single-handedly cost...

Anonymous

Helloworld scraps CMO role

Read more

What tripe. This article conveniently makes no mention of her lies and bullying tactics and how she had placed everyone off-side with her...

Anonymous

Helloworld scraps CMO role

Read more

Latest Podcast

More podcasts

Sign in