AIMIA V21 - Richard Lord
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Author: Date: Version: V21 2009 New Business not New Media Richard Lord – Chief Marketing Officer 18 th March 2009 Final
description
Richard Lords presentation at the AIMIA V21 conference held in Melbourne, Australia
Transcript of AIMIA V21 - Richard Lord
Author:Date:Version:
V21 2009New Business not New Media
Richard Lord – Chief Marketing Officer18th March 2009Final
Who am I & Why am I Here?• Hyro Limited is Australia’s largest and
Oldest PURE Digital Services Company
• We have now worked with more than 500 different companies and government agencies in more a dozen countries
• I am an “Old Man of the Internet”
• I started Australia’s FIRST web developer in 1994 and have delivered many “firsts” for the Australian online Industry
• I have the privilege of working with around 350 of the brightest, most innovative digital professionals in Asia
Australian Digital Industry Insights
• In 2008 AIMIA, Hyro and IBM Australia Collaborated on the inaugural AIMIA Digital Services Index™
• We used independent researcher Springboard Research to interview 107 companies and government agencies about their investment / expenditure on digital
• 77% of respondents were >1,000 employees
• Data collection covered ALL aspects of digital; from infrastructure and hosting through to online advertising and all things in between
40% of customers engaged through Digital Services
in 2009
Australian Digital Industry Insights
25% of customer revenue tied to Digital Services
in 2009
Australian Digital Industry Insights
14.3% of enterprise S,G &A expenditure on Digital Services
Or to put it another way
AUS$17.9 Billion spent on Digital Services in 2008
Australian Digital Industry Insights
Australian Digital Services Industry
A$17.9Bn
• First Measure of the WHOLE Digital Services Industry in Australia
• Confirms that Digital is MORE THAN Online Advertising
• Online Advertising is only 1/3 of the total expenditure on Marketing via Digital Channels….
• … and about 9% of the overall spend on Digital Services
Total Digital Marketing Spend
A$4.5Bn
Online Advertising
A$1.5Bn
Australian Digital Industry Insights
• CUSTOMERS continue to shift to Digital Channels…. with around 40% of customer engagement driven by Digital Channels
• And are taking their BUSINESS with them … with 25% of corporate revenue driven by Digital Channels in 2009
• Yet INVESTMENT is still lagging as only 14.3% of corporate expenditure is directed to Digital Services
• Some of this is represented by the relative cost efficiency of digital, but Australia remains UNDER-INVESTED
Customer Engagement
Share of Corporate Revenue
Digital Services
Investment
24.8%
39.8%
14.3%
Australian Digital Industry Insights
Our Perspective on the Future
• There is a “confluence of forces” affecting digital
• At the same time as companies are reviewing the effectiveness of their traditional advertising spend, their customers are driving a shift to digital channels
“The global ad market could shrink by 10-15% (by 20% in the US ) in 2009”Source Interpublic – Australian Financial Review 16th March 2009
• Traditional Media Channels (TV, Print, Radio) are under pressure – we cannot assume that they will continue to exist in their current form. They will need to either transform or perish.
• This is the RISE of DIGITAL
Our Perspectives on the Future
Commercial Focus – transaction capability, data gathering, commercial value becoming MUCH more important
Business of Significance – risk management, performance, managing yield becoming MUCH more important
What is the New Business of Media
• EVERY corporation or government agency MUST take greater hands on ownership for distributing their marketing message
• This means:– Acquiring, managing and leveraging good
DETAILED information about your customers– Having the right infrastructure to
distribute your own messages– Having the right teams to manage your
Digital Presence as a core capability
• Traditional Media will need to adapt to provide robust channels to well qualified groups of customers – and that means good systems, data & customer intelligence(& they’ll have to watch out for Google)
Important things to consider in 2009
• Get your platform right – if you don’t have control of your data, your channels, your security and your transactions you WILL be disadvantaged coming out of this recession downturn
• Get your channels right – now is the time to have an integrated, cross channel capability. There are BIG moves afoot in mobiles andother channels you need to be ready.
• Get your operations right – Digital is core to the success of your business, but many companies still try to cobble together an internal team of generalists and do it on the cheap. Work with experts and consider outsourcing.
Ongoing Insights
• Working together, AIMIA, Hyro and IBM Australia are continuing the work of the AIMIA Digital Services Index™ in 2009
• Today we are launching our 2009 Online Survey
– An interim survey measuring key intentions for Digital Services in 2009
– 12 questions (it takes about 10 minutes)
– http://www.digitalservicesindex.com.au/
• The 2009 AIMIA Digital Services Index™ will kick off in July for release in September
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