Gumtree: Second-Hand Economy

ContributorsChi Phan

Kamilia TahaniPhat Ly

Agenda

ROPES of Case Study

Critical Evaluation

Key Take-aways

I. ROPES of Case Study

1. Research

Background Gumtree Australia Number 1 free and online classifieds Achieving coverage is challenging

Situation Analysis Research released in August 2011, Sydney

became the 7th most-expensive city in the world

Australian businesses, particularly retail suffer from depressed spending

1. Research (cont.)

Target Publics Key Influencers National and metro publications (online &

print) Street press Broadcast media (TV & Radio) ‘Mummy bloggers’

2. Objectives

Goal To promote Gumtree brand & provide a thought

leadership platform able to evade competitive concerns by Australian media

Objectives 1. Business impact – create a 10% spike in unique visitors

to Gumtree.com.au

2. Use a research media platform highlighting brand key messages in 80% of coverage

3. Widespread coverage; at least 15% pieces of feature coverage and 1 million impressions

4. Five tier one interviews for spokesperson

5. Garner usage of ‘Second-Hand Economy’ in 80% of coverage

3. Programming

Key elements of Communication Strategy1. Create strong Research & Data Platform for

Campaign

2. Identify & secure a respected Third-party Ambassador

3. Create localized media storylines and strong campaign collateral, and develop state-by-state pitches and story angles

4. Pre-briefings: Media could be briefed on the results by spokespeople prior to launch

4. Evaluation

Business impact – create a 10% spike in unique visitors to Gumtree.com.au 15% increase in traffic and live ads to site

Use a research media platform highlighting brand key messages in 80% of coverage 100% of coverage

Widespread coverage; at least 15 pieces of feature coverage and 1 million impressions 66 pieces of coverage, exceeding target 440% Over 16 million impressions

Five tier one interviews for spokesperson Sky, ACA, Today Tonight, News Ltd, AAP, mX

Garner usage of ‘Second-Hand Economy’ in 80% of coverage 100% of coverage

II. Critical Evaluation

Positive Aspect (1)

Public Information Model Provides information with accuracy (Lattimore

et al 2012) The research report is the practice It has credibility and informative

Longer impressions on readers Good to introduce new term ‘Second-Hand

Economy’

Positive Aspect (2)

Diffusion of Innovation Theory Seeks to explain how, why and what rate new

ideas and technology spread through cultures Scott Pape as Innovator

Influence on Late Adopters in the evaluation stage of innovation-decision process

Informal Opinion Leader Influential role model who has respect and

confidence of the public (Smith 2009) Independent ideas Word-of-mouth

Negative Aspect

Primary Target Public Uncontrolled Not guarantee that Gumtree’s target audiences

will be reached “Not everyone will see or hear about the

news… Just because a message is available in some vehicles, doesn’t mean that people attend to it and remember it” (Lattimore et al. 2012)

Opportunity

Active Audiences Uses and Gratification Theory

The audiences are not passive, but take an active role in interpreting and integrating media (Katz, Blumper & Gurevitch 1959)

The arrival of Internet Australian households with Internet access reached 7.3

millions - 83% of total households (Australian Bereau Statistics 2013)

23,3 hours online per week and 60% of them are active users of Facebook (Nielsen’s Australian Connected Consumers Report 2013)

Recommendation (1)

Secondary Target Audiences

Demographics

Psychographics

Behavioral Geographic

Both gender

18 – 35

Middle class & Blue collar

University education

Interests in earning & saving money from online classifieds

Want to do online business

Learn to check product’s quality before buying & bargain skills

Strong social media users

Throughout Australian

Urban & Rural

Recommendation (2)

Facebook fan page Share the research report & Scott’s analysis Share real-life profiles of Australians who

successfully in Second-Hand Economy Human interests

Get-rich-fast or save-more-now attached with ‘Second-Hand Economy’

Interactions between Gumtree & the publics

Conclusion

Key take-aways Current situation and public’s concerns are

important factors that can affect the success of the campaign

The media or key influencers are always essential publics in order to achieve third-party endorsement

Media analysis is a common evaluation tool in PR industry

Public Information Model & Diffusion of innovation theory are good start for promoting new terms and ideas

An opinion leader is always good source of third-party endorsement to attract media’s attention.

References

Australian Bereau Statistics 2013, Household Internet Access, ABS, viewed 25 August 2014, http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/8146.0Chapter12012-13.

Katz, E, Blumler, JG & Gurevitch, M 1973, ‘Uses and gratifications research', Public opinion quarterly, pp. 509-523.

Lattimore, D, Baskin, O, Heiman, S & Toth, E 2012, 'A Theoretical Basis for Public Relations’, Public Relations: The Profession and the Practice, 4th edn, McGraw-Hill, pp. 50-68.

Nielsen’s Australian Connected Consumers Report 2013, Nielsen: Australian Connected Consumers Infographic, Nielsen Report, viewed 23 April 2014, <http://www.iabaustralia.com.au/research-and-resources/research-resources/item/1528-nielsen-australian-connected-consumers-infographic>.

PRIA 2012, Gumtree Australia ‘The Second-Hand Economy’, http://www.pria.com.au/eventsawards/consumer-marketing-services/gumtree-australia-the-second-hand-economy.

Smith, RD 2009, ‘Analyzing the publics', Strategic Planning for Public Relations, Routledge, New York, pp. 54 – 55.