PwC: Data investment helps marketers adopt whole-of-business approach

Latest Australian Entertainment and Outlook 2014-2018 report also finds major shift from bought to owned marketing channels

Marketers who are investing in data are more likely to see a shift in the marketing function from a departmental to whole-of-business approach, according to the latest PricewaterhouseCoopers Australian Entertainment and Media Outlook 2014-2018 report.

The latest report found three in five marketers estimate their investment in data and data analytics will increase in the next one to two years. In a supporting joint PwC-Australian Marketing Institute (AMI) survey, three in four marketers are using more customer data to better target and tailor products and messages.

The joint report also showed 84 per cent of marketers investing in data are seeing their function moving to a more strategic ‘whole-of-business’ approach, compared to 74 per cent who claim their data spending will remain the same.

In a statement, the editor of PwC’s report, Megan Brownlow, said brands can no longer afford to hold onto the same old assumptions about customer behaviour and preferences.

“Data is the key to understanding and targeting today’s diverse customer base,” she said. “Brands can now directly target their audience and access insights about their behaviour with digital technology. This has given the marketing function more influence over core business decisions.

“Marketers have gone from being responsible solely for promotion, to reclaiming sovereignty over the other three ‘Ps’ of classic marketing: Pricing, product development, and placement.”

Related: 8 ways to get on top of data analytics

The higher rate of data usage is a step up from last year’s PwC media outlook report, which called on marketers to better utilise data to achieve fresh customer insights.

The trend does represent negative ramifications across the wider media industry, however. The PwC report cited a significant shift in marketing spend away from traditional ‘bought’ channels and towards investments into owned media. One in four marketers currently spend between 20 and 30 per cent of their budget on building and maintaining their own channels.

The results prompted an urgent call from Brownlow for media, entertainment and advertising industries to find new ways of generating revenue.

“Digital and social media channels have driven this trend by diluting the reach of traditional platforms, and making it easier for brands to access their audience directly,” she said in a statement. “In response, established media companies are creating new income streams and building new distribution channels to supplement their threatened advertising revenues.”

Overall, the Australian entertainment and media market is forecast to grow from $33.7 billion in 2013 to $39.8bn by 2018, representing a compound annual growth rate (CAGR) of 3.4 per cent. In 2013, total spending across the sectors grew by 4.5 per cent, compared to global growth of 5.2 per cent.

The PwC report predicts interactive games will be the fastest growing consumer sectors, with a 7.6 per cent CAGR, while Internet access is expected to remain the largest sector, reaching $12bn by 2018.

Advertising spending is expected to hit $14.4 billion by 2018, thanks to a CAGR of 3.1 per cent, with Internet advertising reaching $5.7 billion over the same timeframe.

Although the advertising market enjoyed better growth in 2013 at 4.8 per cent, revenue was spread over more players and channels as the industry continues to fragment, PwC stated.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, join us on Facebook:, or check us out on Google+:

Signup to CMO’s 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

Un-complicating multi-channel marketing: 5 actionable steps

There’s so much choice available that customers can pick and choose who they buy from and where, when, and how it happens. They want to discover, research, evaluate, and purchase on their preferred channel. Give them that option, and they’re more likely to choose you. That’s the whole point behind the multi-channel approach.

Aaron Agius

Co-founder and managing director, Louder Online

People in vegan houses shouldn't throw bacon

Picture this. You’re at a Gourmerican burger joint chomping a cheeseburger, when an outspoken vegan friend starts preaching that you’re killing the planet. Last week, that same vegan downed a pricey glass of pinot before their flight to a far-flung destination, armed with their strongest mossie repellant and first aid kit. Anything amiss?

Abbie Love

Strategist, Ikon Communications

The role of the CMO is evolving: Are you keeping up?

My (amazing) vacation in the Galapagos Islands earlier in the year got me thinking about Charles Darwin and his theory of evolution. What does this have to do with the role of today’s CMO, you ask? Plenty.

Sheryl Pattek

Vice-president, executive partner

It’s excellent aiming to resurrect the complete within the hearts and minds of connected customers, moreover because the terribly relevan...

CMO Interview: How Kodak’s global CMO is bringing the brand back from the brink

Read more

Great to see ActiveCampaign's growth funded with some serious money.As a platform, it's up there with the usual suspects in terms of feat...

Lawrence Ladomery

CMO's top 10 martech stories for the week - 13 October

Read more


Kerry Edwards

Open Colleges taps into social for better student interaction

Read more

Or just go to sites like www.shopsthatshiptoaustralia.c... and others and be sure that the stores will send to where you live :-)


Why online shopping is like dating – RedBalloon CEO

Read more

Personalisation is the key. Customers demand a very relatable and well defined CX where the sincerity and understanding of their disposit...

Hitesh Parekh

In pictures: Improving cutomer experiences through smart personalisation

Read more

Latest Podcast

More podcasts

Sign in