Three quarters of marketers in Australia are using more customer data to better target and tailor products and messages, and it’s having “a profound effect” on the way marketing spend is allocated, a new study says.
The report, PwC’s Australian Entertainment & Media Outlook 2014-2018, also said that some 60% of marketers reported they’ll up their spend on data and data analytics over the next two years.
“Brands can no longer afford to hold onto the same old assumptions about customer behavior and preferences,” said Megan Brownlow, who edited the report. “Data is the key to understanding and targeting today’s diverse customer base.
“Data analytics can also deliver ‘real-time’ customer insights, meaning companies can be much more responsive to their customer’s needs and more agile in their strategic decision making.”
PwC’s report also said more Australian marketing departments are moving spending away from traditional advertising, where, dollar-for-dollar, ad spend has been less fruitful because consumers are turning to other platforms and are being influenced by technologies like social media.
Media, advertising and entertainment companies will need to embrace new revenue models more quickly.
“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,” Brownlow said. Established media companies are creating new income streams and building new distribution channels to supplement their threatened advertising revenues in response, she said.