Mi3 Audio Edition LiSTNR

‘Virtual professor’ Mark Ritson says advertisers should be allocating circa 11 per cent of media budgets to total audio. Problem is, the market’s not buying Ritson’s line. Audio’s dollar share is sitting just over half of that and static, despite broadcast audiences increasing 6 per cent since Covid and time spent on total audio surging 49 per cent.  SCA thinks media planners may be behind the curve – and aims to change that by hammering home both the audience growth message and the fact it now has the tech firepower and user data to compete with the likes of Meta, Amazon and Google on performance-led conversion.

Via audio platform LiSTNR, approaching 2 million logged-in users, SCA is armed with personalisation smarts and first party data matching via data cleanrooms that enable highly efficient and effective audience targeting via dynamic creative messaging. That means it can deliver both sharper behavioural and contextual targeting as well as broadcast reach – and some major QSR and cosmetics brands are piling in for a deeper read on where key audiences are, and what they are consuming. But you need to cover both bases, per National Head of Audio Sales Luke Minto, because SCA uses the tech stack in its own marketing efforts – and watched conversion plummet 30 per cent when broad reach was wound down for targeted performance alone.

While advertisers need a deeper understanding of what audio can now deliver, Head of Digital Ad Product and Operations, Kim Loasby, says her key message to advertisers is “you don’t have to be an expert.” SCA will walk buyers though the layers.

Loasby says SCA has just done that for a certain mattress brand – where buyers are in market every five years at best. By ingesting the brand’s data, SCA found its high value customers “significantly over-indexed in listening to Abbie Chatfield … So then we could definitively say ‘people who are lookalikes to your highest value customers are likely to be entertained by this piece of content’.” It worked. “They immediately pushed some more data.” Other brands, she says, are using SCA’s new data capabilities and dynamic creative optimisation to re-engage lapsed buyers while suppressing others – making the budget go further. “So we are seeing our ad tech pay dividends for brands already.”
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The stampede by companies into CX, with massive associated investments into martech, specialists teams and organisational overhauls, is having little impact on customer experience scores – and big banks, telcos, and car brands are at best benchmarked as average, despite investing billions collectively. CSBA Managing Director, Paul van Veenendaal, has seven years of CX performance data from 12,000 annual assessments across 200 Australian firms and it’s a sobering read for those firms heralding their commitment to connecting up and improving the experience across all customer contact points. In short, all that tech investment is simply not hooked up to customer contact centres – and NPS scores, which many leadership teams have linked to performance and bonuses, are “being gamed”, he warns, for better but hollow CX benchmarks. No big brands feature in the top 10 of CSBA’s CX rankings, and only one, a superannuation company, makes the top 20. Chatbots aren’t up to scratch yet, says van Veenendaal, and companies have “pretty much parked” speech analytics. Meanwhile despite heavy investment in digital transformation, call centre volumes have not declined over the last seven years – and those call centres are focused on the wrong outcomes and metrics, he says. Hence underwhelming CX scores across CSBA’s rankings. But some sectors are nailing it: Universities and colleges, utility companies and local authorities – the latter at least partially due to the policies of a one-time adman and former Victorian Premier. Here’s where van Veenendaal thinks it’s all going wrong – and how to fix it.
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Tourism NT has always scored its biggest wins targeting the over 50s. Problem is, every other brand has twigged they’re the only one still spending. Cutting through is harder because other tourism bodies are going large on media to carve out their own slice. Plus, it’s already tricky for tourism operators to differentiate. Atomic 212°’s Asier Carazo plays a game of “hide the logo” with Tourism NT’s team every time he visits Darwin, showing other tourism body ads without their branding, and usually catches them out. “I can’t deny that we all get tripped occasionally,” admits Tourism NT marketing boss Tony Quarmby. “Unless you have the Opera House in your shot or Uluru … then it's really only the cityscapes that are going to make any difference. And to most consumers, a city is a city.”

Problem is, most of the over 50s have “done” Uluru – so how to convince them that the NT is more than the iconic rock?

At the same time, over 50s mindsets have shifted. They are far more safety conscious than even two years ago, says Quarmby, more anxious and more price focused – and that flux is ongoing. So Tourism NT needs to hit consumers with relevant, personalised content that speaks to those shifting mindsets, calms consumer nerves and gets them spending. Meanwhile, for the under 50s market, Quarmby needs to sell the NT as an experience and adventure that rivals overseas travel – without the expense of leaving the country.

Hence Tourism NT going through a massive media, martech and process overhaul. At the heart sits a customer data platform, or CDP, to enable deeper understanding of key demo mindsets and more effective “real-time” personalised comms. Plus, it should help media budgets go further – i.e. by supressing ads to less relevant prospects, “and making sure we are seeking new people,” per Atomic’s Ashleigh Carter.

Quarmby expects the new stack and approach to “make a big difference” in about six months time. In the meantime, he’s backing Atomic to deliver best bang for buck with smarter tactical campaigns to keep visitors incoming. He cites NT’s hijacking of the Adelaide AFL Gather Round last month, reaching millions with Uluru-themed billboards and then retargeting them with discount vouchers – delivering “370 per cent plus in ROI” – as the kind of approach it needs to take.

Atomic’s Carazo thinks brands need to embrace the current chaotic environment and accept having to work harder on media campaigns to move the needle. “More craft, more high-touch media activity is definitely going to pay off,” he says. “Set and forget” won’t cut it.
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There’s so much happening on the regulatory front it’s dizzying, so Mi3 called in the experts for an update - and it’s proven rather revealing: Despite intensive lobbying from loyalty scheme operators and beyond, Australia’s sweeping privacy law overhaul remains on course to land this year – with massive implications for just about every business. “It's now clear that we will see a substantial broadening of what is regulated as personal information,” according to Data Synergies Principal, Peter Leonard. “That will include use of online tracking codes and techniques such as fingerprinting, which enable the targeting of individual consumers – and I think we will see that regulation encompassing not only online targeted advertising, but also targeting of content.” Which gives publishers something to ponder – especially those making major martech investments, says Civic Data’s Chris Brinkworth. Across all sectors, Brinkworth warns companies are leaking data on a wholesale basis “in a way that contravenes current Australian Privacy Principles let alone future Australian Privacy Principles”.

The broadening of personal information definitions will also govern use of CX data within martech stacks, effectively limiting what banks and retailers, for example, can do with customer data unless they can explain it to “someone of below average intelligence,” per Leonard - and provided it passes a test of ‘fair and reasonable’ use. If not, prepare to fall foul of the Privacy Act, face class action lawsuits and massive fines. The Feds, warns Leonard, are getting firmer on their position, and industry is not being heard “at the same level that privacy advocates and a number of the consumer organisations are being heard in Canberra”. Meanwhile, the ACCC’s probe of data brokers is expected back from Treasury as early as this week, with fallout likely for Australia’s marketing supply chain. “We’re all talking about Meta and Google hoovering up data, but I think the biggest operator in terms of data brokerage in Australia is Woolworths’ Quantium,” per Laurel Henning, Legal and Regulatory Affairs Correspondent at Capital Brief. But across the pond, Google now faces genuinely existential challenges, says Future Media’s Ricky Sutton, as the US Justice Department and Federal Trade Commission “have both said that what they're seeking is a breakup of Google. So there are big changes ahead.” Governments, he says, have decided enough is enough, big tech is about to cop it – and the impacts will market-wide.
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Uber’s ads business is starting to scale and its New York-based boss Michael Akkerman says Australia – one of its best performing markets, with a rapidly growing sales operation – will see the next wave of new formats first. He’s touting retail media meets “mobility media” and a collapsed funnel “brand-formance” model - brand and performance marketing in a single execution. A younger, richer set exposed to an Uber Ride brand ad is driving hard sales via Uber Eats with verified "closed loop” attribution.

Akkerman was in Sydney last week wooing “hundreds” of agency execs and rattling off big numbers. Coke’s gamified ads in the ride business got a tonne of new customers and orders via Eats. Absolute Vodka got a 28 per cent sales increase, HSBC likewise a major uplift – and they are coming back for more.

Akkerman says the delineation of brand and performance is a false construct. The purpose of brand is ultimately to drive longer-term sales, but put a call to action – a performance element on a brand ad – and a percentage of people will immediately go and buy. People don’t think ‘brand versus demand’, he says, only marketers. But Akkerman reckons that is shifting rapidly in a fast fulfilment world. Just don’t ask Uber for “cheap eyeballs” and rock-bottom rates: “We can seek affordability … but to me it is about return on ad spend.” Whether procurement departments agree remains to be seen. But Akkerman suggests advertisers get what they pay for. He’s claiming Uber ads deliver much higher click through rates, circa 3 per cent versus the “0.000x per cent” brands would be “lucky” to get on other platforms, and is fraud free, because “bots don’t hail cars”. Meanwhile it’s privacy compliant – because everyone has signed up and linked their credit cards. Plus advertisers are connected with “actual humans, not digital representations.” Hence why Uber’s bullish on hitting a billion dollar ad business very soon – if it hasn’t already.
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Marketing effectiveness is getting worse. Dan Krigstein, Director of think tank The Growth Distillery and Ogilvy Chief Strategy Officer and Innovation Lead, Toby Harrison, have spent the last six months working out why – and building a framework they are now bringing to market in a bid to reverse the effectiveness slump.

Their findings literally flip industry-wide assumptions on their head – and expose deep misunderstanding on the power of influence (not influencers) in decision-making. If you take nothing else out of this podcast, it’s that our brains are overloaded, the signals that help us make decisions are missing and “active cynicism” is the baseline. “A world of doubt creates a chasm which influence can fill,” says Harrison. But most brands are missing that trick, mistakenly thinking that consumers trust brands and their message. We don’t. We trust those with whom we have affinity – our influences – much more.  For that reason, as Harrison puts it: “People down the pub are doing a way better job in merchandising brands than any of us have been.”

Crucially, say Krigstein and Harrison, the assumption that optimal effectiveness is achieved by hitting people in their restive, least-distracted state is entirely wrong.

Hit us when our brains are most stressed, they suggest. “If you can take an affinity-lead message at a time where cognitive load is highest, it's actually most potent,” per Krigstein.

But don’t hit people with more information. “The Midas touch in this is to remove the difficulty that already exists and give a simple, easy, definitive processing answer – because we cannot rationalise this stuff anymore,” says Harrison.

“There has never been a richer or better opportunity for brands to actually start providing the type of influence that people are seeking to help them make the decisions that they need to. And that is a tremendously exciting opportunity.”

Welcome to the world of real influence.
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