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: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

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

Join the newsletter!

Error: Please check your email address.
Show Comments

Blog Posts

The competitive advantage Australian retailers have over Amazon

With all of the hype around Amazon, many online retailers have been trying to understand how they can compete with the American retail giant.

Joel Milligan

Performance manager, Columbus Agency

How to become the customer experience custodian

The number one objective enterprises give for embarking on a digital transformation is to improve customer experiences with new engagement models, according to IDC’s 2017 global study.

Fear not: It's only a robot

Every time I pass through the automated border controls at the Sydney airport I walk away with a feeling of exasperation on the one hand and relief on the other. Exasperation, because the face recognition technology inevitably always fails to recognise me. Relief, because we seem to be safely years away from the Orwellian reality of states controlling every aspect of our lives; something the media is keenly warning us against each day.

Dan Kalinski

CEO, iProspect Australia and New Zealand

I worked at Momentum when the transformation started way back in 2013 (not 2015 as stated in the article). It was a painfully slow and co...

Jay

How Momentum Energy has transformed its entire business to be customer-led

Read more

Another buzzword thoughtlessly latched onto, without any thought for the implications on the organisations that have to lumber through th...

Tired

Rolling out agile marketing at Deakin

Read more

Useful., also don’t miss out on these 5 features of Adobe Experience Cloud - Visit here > http://www.softcrylic.com/b...

Sunil Joseph

Adobe debuts Advertising Cloud, Experience Cloud

Read more

the systems that run these things are teachable just like a car, theres stuff still yet to come out to bring up the automation grade, b...

Magnus Robert Carl Wootton

Fear not: It's only a robot - Big data delivery - CMO Australia

Read more

Marin Software’s digital marketing solution as a short way of streamlining and finding a scalable solution...

Al Drazhev

How BizCover is boosting search advertising success

Read more

Latest Podcast

More podcasts

Sign in