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!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Why are we dubious about deep learning?

The prospect of deep learning gives those of us in the industry something to get really excited about, and something to be nervous about, at the same time.

Katja Forbes

Founder and chief, sfyte

Why you can’t afford to fail at CX in 2019

In 1976 Apple launched. The business would go on to change the game, setting the bar for customer experience (CX). Seamless customer experience and intuitive designs gave customers exactly what they wanted, making other service experiences pale in comparison.

Damian Kernahan

Founder and CEO, Proto Partners

Natural born leaders

Many business and marketing managers progressing to leadership positions face evolving their focus from operational matters to strategic decision making and planning.

Jean-Luc Ambrosi

Author, marketer

Interesting article but what about the employees? There needs to be access to quick cash for everyone involved lest we have yet another '...

Joel Pencer

Suncorp outlines customer investments, digitisation as key to business improvement

Read more

Just printed out this Brad Howarth screed to read tomorrow. I need a good laugh once in a while. Or maybe shed some manly-man tears at th...

Larry A Singleton

What a diversity agenda has done for Kellogg's staff and innovation engagement

Read more

Morons. PC Nazis infiltrating and subverting every level in our lives.These scum have destroyed our education system.Read FrontPage Magaz...

Larry A Singleton

What a diversity agenda has done for Kellogg's staff and innovation engagement

Read more

It is an accepted fact that in the present times the mass makes use of digital marketing more often and are more and more enlightened wit...

Digital Marketing Course in Ja

Why RMIT is partnering with Adobe for digital marketing learning

Read more

If men were really the dominating brutes that feminist make them out to be ,then women really would be second class citizens. Without th...

aaron

Analysis: Gillette's latest ad only proves why brands standing for positive change is vital

Read more

Latest Podcast

More podcasts

Sign in