Deep Dive

Cummins & Partners CEO Michael McConville returned home to Australia last year after five years at the helm of adam&eveDDB, home of effectiveness guru Les Binet – and where he was steeped in econometric modelling with the likes of John Lewis and Volkswagen. One marketer within the Volkswagen Audi Group, Benjamin Braun, nailed econometrics to the point that he could “forecast within 32 units [i.e. cars] what their campaign spend was going to get them in terms of sales”, per McConville. He’s aiming to go one better, probably with clients like Jeep and McCain although he won’t say just yet, after inking an exclusive creative agency deal with Mutinex for econometric modelling in real time. “We'll be looking to beat Audi,” says McConville. “This is a step ahead of what I’d been using in the past by a long way … This is the beginning of an industry repositioning. This is a form of applied marketing science … and agencies won't have excuses anymore to not put this sort of thing forward to clients.” Plus, he’s using it to change Cummins & Partners fee structures: less upfront, more of the client business upside later. “Creativity won't be talked about as a big bet anymore,” reckons McConville. “It's a sure thing.” And that, he says, will make marketing a growth centre once again. 

Asked what she’s been doing for the last 2.5 years, Are Media CEO Jane Huxley doesn’t hold back. She says the business was in a mess after the Pac Mags and Bauer mergers with massive inefficiency and tech duplication following years of chronic underinvestment. Even the IT department had no map of all the disparate systems. She had to get dirty in the bowels, remap and rebuild. Now she says the thrusters are firing and the digital overhaul will start paying dividends in 2024. Print has at least five years to run powering the bulk of revenues, per Huxley, but the business’ engine room – editors – are being trained to become omnichannel content-driven commerce curators. Are’s first marketplaces are now live – and Huxley says editorially-curated niches versus Amazon-style breadth deliver fat margins. Can they scale faster than circulation revenues decline? Per Huxley: “That’s the game”.

Spreadsheets are not going to save the planet. The threat of jail time might. “The world is facing enormous challenges, the clock is ticking, we are in an emergency,” says Ari Alexander, VP and GM, Salesforce Net Zero Cloud. Yet most businesses are all over the place when it comes to their environmental data. That makes calculating where they are at nigh impossible, “let alone where they are going.” But regulators in the US and Europe are mobilising to make environmental reporting data as robust as financial data – and new standards will have profound implications for businesses globally. They can no longer hide, says Alexander, and the regulation is moving away from product-based carbon footprinting to enterprise-wide. As a result, marketers are already pulling back from green claims, with CPG giant Unilever being sued in Europe, per Alexander. He thinks it’s just the tip of the iceberg.  

After a wild week at Salesforce’s global jamboree in San Francisco, the tech giant’s full flip to generative AI was relentlessly hammered home. Like most, the heat is on APAC marketing boss Leandro Perez and his 100-plus regional marketing team to walk the talk, applying Salesforce’s new AI-powered capabilities to his own operation. Perez claims it’s working – from freeing up masses of time to iterate social posts on different platforms, to summarising Slack meetings, driving thousands of personalised iterations and interactions on its website, notching up to 80 per cent engagement rates on email campaigns – and potentially turning customer service teams into sales teams - at least partially. But Perez insists all those productivity gains won’t see teams hollowed out. “We never have enough people to do what we need to do anyway, especially if you have big visions from brand to demand.” Creating 15 versions of a social post and scheduling it “isn’t marketing” anyway, he says, “it’s just operations work. So I personally am not getting any pressure to reduce as a team.” Perez says the major B2B firms he’s speaking with all proffer similar lines. If anything, says Perez, generative AI gains mean he can ask for greater resource – because he can prove to leadership that marketing is powering through greater workloads, in turn driving sales growth. And APAC is Salesforce’s fastest growing market globally. Here’s a few insider learnings from a company selling AI to the world. And where B2B marketing is headed next. 

After two decades at GroupM, Dave Gaines quit to launch Media by Mother, an offshoot of London creative hot shop Mother that he only half jokes may ultimately subsume its progeny. A major frustration with US holdcos, per Gaines, was the inability for swathes of their people to think laterally, critically and stay curious. He hired a shrink to try and fix the problem, and then tried to take a creative-agency led approach to media within WPP. Ultimately, neither worked. Now Media by Mother staff – many arts grads – are KPI’d to read, listen and learn outside of their remits to better grasp the bigger picture. If they do, they get up to 15 per cent more salary. If they don’t, “there are plenty of other places they can work.” The agency doesn’t make any money from trading media, “the money flows through their pipes, not ours”, and Gaines says media buying is a misnomer: “It’s just data entry”. Meanwhile, those arguing over Recma billings rankings are akin to bald men fighting over a comb: “If you think scale is important, you don't know how an auction works.” After hitting its five-year growth targets in two years, Media by Mother is now mulling an Apac office, and a Naked 2.0 model – except with execution, which Gaines reckons was Naked’s downfall. Its precise Apac location will be determined by finding curious, T-shaped contextual operators – and he reckons Australians are less fearful of competence than their US peers.

Since leaving Telstra to take on a wide-ranging c-suite role at Tabcorp – spanning product, data and data science, customer experience and personalisation, brand, marketing and sponsorship with revenue responsibility – Chief Customer Officer Jenni Barnett has hit the turf running. The betting firm was haemorrhaging customers and share to digitally-savvier, free-spending rivals like Sportsbet and Ladbrokes. One year in, she’s stemmed the flow after launching a new app and migrating nearly a million customers within months to make the Spring Racing Carnival, driving ten updates since and KPI-ing the whole firm on digital revenue share. Customer experience is the key battleground per Barnett – and she’s front-running regulation and pulling Tabcorp out of daytime TV. To reel-in rivals she’s undertaken a sweeping overhaul of the marketing, digital, data and product teams and their capabilities – and pushed talent to develop quickly. Game on.

David Jones’ new retail media business wants brand budgets – both from the suppliers it already works with as well as wooing marketers across travel, automotive and lifestyle. CMO James Holloman is backing shopper data from 5.4 million premium David Jones customers – and the ability to hyper-target them across DJs stores and digital assets as well as across the open web – in a plan to woo marketers to spend with its new Amplify media unit. Years in the making, Holloman needed to convince powerful merchandising teams to cede control of how they strike deals with suppliers while building a tech stack from scratch and centralising control of its sprawling assets. Now the marketing-run Amplify has its own P&L and great management expectations. Jonathan Hopkins, whose firm Sonder helped value DJ’s assets and develop the media business, says the average department store retailer in Australia could make $34m annually from media. But that’s the average, and DJs is top-end, with 55m annual store visits and 110m hits to its website. Its loyalty data-powered offsite media revenue could be significant but Holloman’s not putting a figure out there, and shies away from any suggestion it’s a ‘Cartology for premium shoppers’. “It’s early days,” he says. “But we’ve got ambitious targets.” Here’s how Australia’s oldest retailer got into the newest, fastest-growing media game in town – and where it’s headed next.

The experts at Hoyts and Val Morgan didn’t see it coming quite as it did. Hoyts CEO Damian Keogh says he was “laughed out of the room” for suggesting Barbie would take $35m at the Australian box office. It's now tracking upwards of $70m  – meaning Margot Robbie’s not the only one in the pink. Kia, AAMI, Chemist Warehouse, Modibodi and Nintendo aside, marketers are kicking themselves for being equally blind to the opportunity. Now Val Morgan’s phone is ringing hot with advertisers “asking what are our next ten Barbies”, per MD Guy Burbidge. He and Keogh have a good idea what they are. They think the lesson for brands is to think earlier and smarter about IP marketing. Meanwhile, Barbenheimer has brought lapsed cinema audiences back to screens – 15 per cent hadn’t been for a year, per Hoyts 2.5 million member loyalty data – auguring well for a year in which the box office is powering back to the billion dollar mark. Plus, says Burbidge, cinema’s investment in attention data is having a “significant” revenue impact as marketers seek mass cultural alternatives to sport. Here’s the next big screen bets they think marketers should be laying over the next 12 months.

Just about every B2C business is trying to build superglue stickiness into their user platforms. Nimble start-ups, at least prior to the big VC squeeze, were the poster children, leaving big legacy firms foundering in their wake. But SCA’s pivot to uber app Listnr is a standout exception, reinventing its digital audience business and building a new brand from scratch – pretty much all in-house. Launched mid-Covid in a bid to see off local incursion from the likes of Apple, Spotify and iHeart, Listnr has already powered past 1.5m signed-up users. Now SCA is using the logged-in data – alongside a new martech stack and digitally upskilled marketing department – to move the needle across acquisition, retention and engagement, while giving advertisers sharper incentive to spend. CMO Nikki Clarkson said the pivot required the entire business to suspend traditional thinking – from finance, sales, marketing, content, distribution, research and tech – without dropping the ball on its day-to-day game. Then the business had to go through a major systems overhaul while learning the language of tech and customer experience. But she says the pay-off and ROI is already landing, with marketing alone making “monumental gains” by aligning sharper digital tools with brand-building assets. Her takeout for those planning mass audience transformations? Go broad or go home.