Metadata: Implications for marketers

There is no doubt about it. Metadata is increasingly becoming an important tool for many digital marketers. But what exactly is Metadata? And more importantly, what are the implications of collecting this data?

At present there is no formal definition of what constitutes metadata under Australian telecommunications law. However, it is most commonly seen as a set of data that describes and gives information about other data. In general terms metadata is more widely known as data generated from interactions you have with other people and organisations as you use technology. While no conclusive list is available, examples of metadata include phone numbers, email addresses, IP addresses and location information including the time and date of activity.

Source: http://www.thinktankconnect.com/

We now live in a digitally connected world that has given rise to a vast amount of metadata. Embedding metadata into a range of everyday technologies we use has become commonplace. By contrast there is huge global debate as to what exactly constitutes personal information with the landscape constantly changing and evolving. The privacy revelations revealed by Edward Snowden in 2014 brought issues surrounding metadata firmly into the public eye. Metadata is about the footprint that is left behind when a person interacts with technology. The concept of metadata fits into a much larger picture of large data sets. This is data of a very large size, typically to the extent that its manipulation and management present significant logistical challenges. Previously there was no legal precedent for companies to store this data. Telecommunications companies across Australia use considerable resources to store metadata for both data analysis and billing purposes.

From the perspective of the consumer, metadata can reveal private and potentially revealing details about their lives. There have already been abuses of metadata that have raised the privacy implications for consumers. Storing vast amounts of consumer metadata for two years rather than 30 days vastly increases the risk of the information being targeted for hacking. The Australian privacy commissioner has previously stated that the telecommunications companies are among the worst at storing data. The implications of this to individual privacy are potentially huge given the rich detail of the data. By enforcing the increased storage and encryption of this metadata would likely result in higher costs subsequently being passed on to the consumer. The impact that the collection of data has on the lives of individuals is the same regardless of whether the capturing of metadata is legal or not. We cannot control the data being collected by telecommunications companies. But at the same time, consumers should have a choice in the right to control collection, access to and use of their metadata.

Source: http://www.moodyplc.com/

The implications of metadata and privacy are a concern for many worldwide. In 2011, the German politician Malte Spitz filed a lawsuit against T-Mobile to release metadata from his phone account. The European Union Data Retention Directive requires telecommunications companies within the EU to store customer data for a period of six months. The directive was later declared invalid and annulled after lobbying by a digital rights advocacy group. Wikipedia Co-Founder Jimmy Wales has been vocal on the implications of the collection of metadata enforced by federal law, describing it as a ‘human rights violation’. Consumers may feel threatened and concerned about their freedom of speech with so much personal data being collected.

The lack of a clear definition of metadata in Australia is a key issue that contributes in failing to adequately protect the privacy of individuals. However, this lack of a formal definition of what constitutes metadata is meant to protect the fast paced and ever changing technology industry. As a legal definition appears unlikely until new legislation is passed, it would suggest that metadata will continue to be an issue in regards to privacy for both individuals and organisations. Metadata is becoming increasingly important to marketers as a tool to better understand customers. Depending upon its complexity, metadata can be used in a number of ways from everything from search engine optimisation to increasing content uptake. What makes it so attractive to marketers is that it provides rich data that can be analysed to gain a broader picture of users but also that the data can be tailored at the individual level.

Source: http://effusiondesign.com/

Ethically, customers are informed of the data being captured in the privacy policy and under what conditions their information can be shared. However, from an individual perspective we must remember that in the digital age the right to privacy and self-determination are important issues and must continue to be fought for. In the larger picture, this concerns the question of what exactly constitutes individual's privacy and exactly how much control individuals have other their digital footprint.

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

Marketing metrics: How much are your tweets actually worth?

Who do consumers trust when it comes to purchasing decisions? That’s right you guessed it, social influencers!

Influence marketing is not exactly a new phenomenon, but has increased rapidly with the rise of social networks in the past ten years. Influencers themselves could be potential buyers or users of a product, or even third parties such as journalists or industry experts. The key to influencer marketing is that the influencer holds the power to shape and change the behaviour of others within their network. This is typically achieved by creating engaging promotional content to a wide and loyal audience of followers.

Source: http://hyperactivate.com/

In a world where customers are increasingly using online recommendations, influencers hold a lot of power in the social space. Recent research has shown that 74% of customers rely on social media to influence their purchasing decisions. This week, Twitter is celebrating its ten-year anniversary with over 320 million active users. So how much are your tweets actually worth?

A fantastic new tool from the company Webfluential allows users to gain an estimate of the potential monetary value of their tweets. Using a special algorithm to analyse your following, the Influence Estimator tool gives a rough approximation of how much you could charge per tweet. In order for this to work accurately you will of course need a following of at least 500 people in order to sufficiently monetise your 140 character tweets.

For those of us who sadly don’t have a large Twitter following, the Webfluential tool can be used to seek out influencers, searching by market type, age and location. Identifying influencers in new markets can be a tricky process, so tools that simplify this process can be incredibly useful for marketers. Interestingly it can also be used to calculate the potential tweet value of the world’s most followed Twitter accounts.


Source: http://webfluential.com/

The current queen of Twitter, Katy Perry, has a worldwide following just short of 85 million. To put that number into perspective, that’s more than two and a half times the population of Australia following her handle @katyperry. Should she wish to monetise her postings she could look to pocket up to $70,425 per tweet. Lenardo Di Caprio may have just won an Oscar, but with only 15 million followers by comparison he could potentially earn up to $45,035 for each Twitter post. These numbers may seem relatively small to the uber-rich celebrities with millions of followers, but social influencers with large followers can use metrics such as Wefbluential to gauge their own value and connect with potential clients.

However, changes to Instagram this week may potentially limit brand exposure through the use of influencers. New algorithms used by the popular photo and video sharing app means that posts will no longer appear in chronological time order. Mirroring the parent company Facebook timeline, posts will now be based on the likelihood that you will be interested in the content. This move will essentially see more power and control being given to Instagram in selecting which articles it should surface. Endorsements from social influencers that were once relatively inexpensive for large brands may soon come with a much bigger price tag as the company takes its slice of the promotional pie.


Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

More choice is always a good thing right? Wrong!

As a consumer and marketer I always naturally assumed that more choice was always a good thing. Autonomy and free choice are important to the well being of humans, but could too much choice actually be a bad thing?

I have always been a big fan of the brand Levi’s. Growing up in the early 90’s the classic button fly Levis 501 was my jean of choice. Levis Stratus created the iconic 501 jeans style in the 1890’s, which later became one of the best selling clothing items of all time. Of course back then Levi’s predominantly came in one colour with only a limited number of styles. Fast forward to 2016 you can buy jeans in every colour of the rainbow with a plethora of styles, features and fits. With so many choices to make, the simple decision to purchase a pair of jeans just became a lot more challenging.

Increased choice has its obvious benefits, but there are also some major negative effects that must not be ignored. An almost unlimited number of choice options can lead to what’s known as analysis paralysis. This is a state caused by over-thinking and often occurs when a person is presented with a large number of options. A trip to the supermarket can become overwhelming when products come in such a wide number of varieties. This has serious implications for marketing practice since increased choice can cause paralysis and increased anxiety for customers. This is particularly prevalent for today’s consumers who are continually making choices not just on what they purchase but how they live their lives on a daily basis.

For customers who are able to overcome the paralysis, research has shown that they will in fact be less satisfied with the result of the choice than they would have been with fewer options available. On the face of it, this may seem very strange and illogical that increasing choice could make you less satisfied. Imagine the case of purchasing a pair of Levi’s jeans online and later becoming dissatisfied, given the huge amount of variety on offer. It could be easy to imagine yourself being satisfied with one of the many other options available. Post purchase dissonance is the regret or unease in the mind of the consumer that can occur in such an event. Opportunity costs also subtract from the satisfaction that we get from what we choose, even when it is actually a good choice. Increasing the number of options available to consumers inevitably causes the expectations of customers to also increase.

So how much choice is the right amount? This is almost impossible to answer, but it is a question that all marketers should consider. We have all heard of the expression less is more, although this is not a hard and fast rule that can be applied to every situation it is useful to remember. When P&G went from 20 different types of Head and Shoulders shampoo to 15, they experienced a 10% increase in sales. 
Increasing clearly defined categories can also help consumers to make less stressful decisions. Market research often shows that customers want more choice, but actually this many mean that they want a better choosing experience. Too much choice is not a good thing and should not be ignored.

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

House of Cards: Netflix marketing genius

On Friday last week Netflix released 13 new episodes of the much anticipated fourth season of its hit show House of Cards. The American political drama has been both a critical and commercial success for Netflix since it premiered in February of 2013. The show follows the story of Frank Underwood, played by Kevin Spacey and his rise to power as member of the South Carolina State Senate all the way to the White House, becoming the President of the Unites States.

Besides being a fantastic Internet television series the hit show is a triumph of excellent marketing practice. In fact, the timing could not be better with the United States currently heading into its next presidential elections. With Hillary Clinton and Donald Trump regularly grabbing the headlines in recent weeks, the House of Cards audience are primed for the political messaging which accompanies the shows main theme.


Source: https://www.fu2016.com/



Campaigners and fans of the show have been urged to show their support for the President by tweeting the hashtag #FU2016. Using Frank Underwood’s initials is a subtle yet clever double entendre, which brilliantly mirrors and reflects the aggressive attitude of the shows main character.
The microsite for the show even allows you to download your own media kit with Frank Underwood themed branding. This includes Facebook and Twitter covers, a poster, sticker badge and even a bumper sticker for the car. The Frank Underwood brand really comes alive through the use of patriotic colours that you would expect from a real political candidate.

Source: https://www.fu2016.com/

Although this is all just for entertainment purposes, this level of attention to detail makes the show feel very real indeed. It is a marketing campaign fit for a real presidential candidate, not just one being played out for drama.  On Twitter this week the President even issued a pardon to House of Cards fans to miss any important meetings they may have until they finish watching the fourth season.  Of course, those who defy the President's orders would be met with zero tolerance for betrayal to the show.

Source: https://twitter.com/FUNDERWOODHOC

There are many reasons why House of Cards has become such a successful series. You could point to the slick production skills or the heavyweight actors and actresses who star in the show. But I think the main reason why it works so well is because it gives political insight into what happens behind closed doors whilst weaving in drama and fiction. The level of detail shown in each episode is equally supported with marketing that is as sophisticated and nuanced as the show itself. Netflix have developed a reputation for consistently creating unique content with their shows becoming somewhat of a hallmark for quality. But I think equal recognition must be given for the fantastic marketing that accompanies these shows.

But that’s enough from me for this week, it’s time to start season 4!

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

The golden rules of student marketing

The long wait is finally over, it’s the end of the summer holidays and the University is back in full swing!

In the last week, thousands of new students descended upon The University of Sydney campus for fun and festivities. The start of OWeek provides a great opportunity to make new friends, join new clubs and societies, and of course we can’t forget about all those fantastic promotional freebies!

Today’s student is tomorrow’s customer; so marketing towards students is crucial for many businesses' long-term success. In the past few years working in youth marketing I have learnt some golden rules to successfully connect with the student audience.

Perhaps the most important rule of all in student marketing is to first understand that there is no such thing as a typical ‘student’. The student body is not a homogenous group, so marketing that is not targeted simply will not be successful. Brands hoping to connect to the student audience must take the time to fully understand how they think, feel and behave. While there may be some shared similarities between student groups it is important to also recognise that there are also many differences. Even narrowing down students to those of University age presents a vast plethora of different nationalities and cultural norms.

Although there is a vast array of differences between students, one thing is very clear, students are clever, involved and aware. This means that marketing needs to be genuine and truthful if it is going to resonate with this audience. Students are also well informed particularly when it comes to issues such as the environment and human rights. Therefore brands need to be transparent, open and honest in the ways that they interact with the student body.

Source: http://www.trinityp3.com/

 Warren Buffett once famously said, price is what you pay, but value is what you get. While price may be a very important factor for many students value must not be forgotten. Value must be demonstrated in ways that are tangible and easily recognisable. Therefore for campaigns to be successful they should look to educate student customers on value and not just price alone.

Brand image is also incredibly important when looking to attract the student population. However, for many brands the default option is often to try and look ‘cool’. Unfortunately, this sometimes backfires resulting in the brand looking too contrived or simply just trying too hard. Hijacking trendy Internet phenomena and memes is a sure fire way in which many brands try to be ‘down with the kids’. But this begs the question, should everything be cool? For example, many banks and financial services in recent years have attempted to take on a ‘cool’ persona to attract younger customers. However, it’s worth considering if this is really an image you want to portray in your product or service.



Source: http://www.meldmagazine.com.au/

One thing that cannot be underestimated is the role that social media plays for the younger generation. The digital natives of today embrace new technologies and digital channels quicker than any generation before them. Experiences from these technologies are becoming seamlessly integrated into the lives of these consumers. However, it is important not to forget the multiple offline marketing channels that can also be utilised to connect with the student audience. 

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

#UberPuppies: Puppies delivered to your workplace!

This morning started pretty much like any other Thursday morning waking up in my Sydney apartment. My girlfriend needed a ride into the city and I suggest for her to book an Uber taxi. But as I opened the app something was different, very different indeed!

UberPuppies! What exactly is UberPuppies? You’ve guessed it, puppies on demand delivered straight to your workplace.

Source: https://newsroom.uber.com/australia/uberpuppies-au/

Between 12-4pm today anybody with an Uber account can order puppies to be delivered to their workplace for 15 minutes for fun for a $40 fee. Teaming up with the Purina Pets At Work mission to deliver puppies to spread the love across eight cities in Australia for a limited time only.

It has been scientifically proven that our furry friends are shown to decrease stress and increase productivity in the work place. Many pet friendly initiatives have been adopted in offices across Australia making it less uncommon to work alongside animals. Of course, almost everyone is smiling when dogs are around which can bring a sense of calm to an often-stressful and busy working environment. 

Source: https://s-media-cache-ak0.pinimg.com

The goal of the initiative is to encourage the adoption of pets and help to raise funds for local animal shelters. In fact, all the puppies taking part in the UberPuppies initiative are up for adoption and in need of a new home. The proceeds of the special delivery will be donated to shelters in Adelaide, Brisbane, Canberra, The Gold Coast, Melbourne, Perth, The Sunshine Coast and Sydney.

Of course, if you are worried about the puppies welfare fear not. This is a limited time initiative with successful requesters being subjected to screening to ensure the puppies safety is a priority. The biggest danger however may be just how many people fall in love with their new fury friends!

I think this is a fantastic piece of marketing from Uber and a great way to raise the profile of their taxi service along by helping a great cause. It comes off the back of a similar campaign last year, UberKittens, which saw friendly felines sharing their love in the workplace. Of course, before requesting one of the Uberpuppies, you may first have to check that is OK with your boss to have an animal in the office for 15 minutes of fun.

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

Super Bowl: An advertisers dream

Super bowl Sunday has ended with the Denver Broncos beating the Carolina Panthers in what many fans have said to be one of the more dull finals in the games' fifty-year history. Fortunately, one thing that almost never disappoints is the half time show and accompanying advertisements that has become somewhat of an event in themselves, not only for fans of the sport but even for the casual viewer.

Source: http://www.adlip.com/

Some call it the greatest sporting event in the world. But for me, it is the greatest marketing event in the world! Marketing during the annual event has grown significantly over the years as brands invest millions to reach consumers. A thirty second advertising slot back in 1967 at Super Bowl 1 watched by 51.8 million people would have set you back at mere $42k. Fast-forward to Super bowl 49 in 2015, which was seen by more than 168 million people, the same thirty-second slot was priced at over 5 million dollars.   

Advertising at the Super bowl is now bigger and more important than it has ever been and not just from a numbers perspective. In a world where audiences are migrating away from TV, preferring to watch content ad-free or with catch-up services, live sporting fixtures take on even greater significance.

Perhaps one of the most creative big game ads came in 2014 from the agency Droga5, who produced the “If we made it” for the beer manufacturer Newcastle Brown Ale. But technically this ad didn’t even exist! Well, it didn’t find its way into a Super Bowl spot at least. The ad is essentially a self-deprecating look at the advertisement the company would have made if they had enough money to actually advertise during the big game. The ad playfully mocked the marketing industry and the role celebrities play in endorsing products.

Source: http://www.adweek.com/

The agency released teasers and trailers for the ads they would have made featuring cameos from Hollywood heavyweights Anna Kendrick and Arnold Schwarzenegger. By poking fun in such a unique way, the anti-endorsements of the beer received 10 million views in just two weeks. The campaign received over 600 organic media placements with over 1 billion in total impressions. In fact, the non-ad even trended above the actual game itself for two days on Facebook news!

Not bad for an ad than never made it into one of the 30 second, 5 million dollar timeslots!

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

What exactly is the ‘Internet of Things’?

For the last few years there has been a new phrase buzzing around the offices of many marketing departments. This phrase ‘Internet of Things’ is perhaps bigger than anyone yet dreams or realises. Last year it was reported that 51 per cent of marketing executives anticipate that the ‘Internet of Things’ (IoT) will revolutionise marketing practices by the year 2020. So what exactly is the IoT?

Source: http://www.kpcb.com/

Dr John Barrett describes the ‘Internet of Things’ as a place where the web and the physical world meet. This is where the planet and everything on it will become part of the ‘Internet of Things’. Everything will one day become part of the IoT from objects, machines, appliances, buildings, vehicles, animals, people and even plants. This is much more than simply just a webpage about those things, but those ‘things’ having an actual presence on the web.

There really is no limit to what could one day become part of the IoT. Anything that can be given a unique identity, sensors to read its environment and the ability to communicate could one day become part of this evolution of the Internet. The only limits we have are our own imagination in how these ‘things’ can be integrated and used to enhance our daily lives.

The IoT will allow us to connect and interact with ‘things’ in new ways and will allow us to monitor them in unprecedented new levels of detail. This will allow us to manage and plan better in all aspects of life. The IoT will also allow us to better control the environment we live and how we relate to everything that surrounds us. Gone are the days where you may loose your car keys, as you will soon be able to ask Google to just locate them for you.

Source: http://www.bandt.com.au/

The IoT is going to have a tremendous impact on both our lives and society. We have seen data play an ever-increasing importance in marketing practices over the last ten years. This trend is inevitably set to continue with the rich data that the IoT will soon provide. Individual marketing has the possibility to become even more targeted as people interact with these new ‘things’. It is estimated that by 2032 people will be in daily contact with between 3,000-5,000 new ‘things’ on the IoT.

I believe we are already living in the ‘Internet of Things’, however we are only at the very beginning of its evolution. The one thing we can be certain of is that the ‘Internet of Things’ is inevitably going to change life and the world as we know it forever.

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

Cadbury Creme Egg Catastrophe

The Cadbury Creme Egg has long since been a staple of Easter. The product itself has enjoyed somewhat of a cult following amassing more than 2.5 million people into its fan club. It therefore came as somewhat of a surprise that earlier this week the confectioner Cadbury announced that last year sales of its famous chocolate Creme Egg had fallen by over $12 million.

Cadbury was purchased by the US food giant Kraft in 2010 which later changed to Mondelez International. At the time of its purchases many feared that the longstanding Cadbury recipes from the 192-year-old company would be cheapened inline with the American manufactured Hershey products.

Source: http://www.dailymail.co.uk/

In hindsight, the drop in sales should really come as no surprise. On the 12th January 2015 Cadbury made the announcement that the Creme Egg recipe would be changed forever. Instead of being made from the usual glass and a half of Cadbury Dairy Milk product it would instead be made from a cheaper standard cocoa chocolate mix. The traditional half a dozen eggs were also reduced to just five with the price remaining unchanged leaving customers shell-shocked.

Cadbury marketing manager Claire Low defended the company saying, "The fundamentals of Cadbury Creme Egg remain exactly the same. It's simply not the case that the Creme Egg has always been made with Cadbury Dairy Milk." However, the damage to the bottom line cannot be underestimated as a result of making changes to the product. Cadbury has been left with egg on their faces as their market share has dropped from 42 to 40 per cent in the last year.

The negative backlash to the recent changes has caused uproar on social media with many consumers expressing their anger at the new recipe. Of course, this would not be the first time a larger food manufacturer has made changes to its product angering consumers. When Coke changed its famous recipe to New Coke in the spring of 1985, it caused a similar backlash. As a marketer, it is important to listen to the voice of the consumer. In changing a winning recipe, Cadbury have alienated their core customers who were quick to notice the difference, calling the product a “Frankenstein egg”.

Source: http://www.smh.com.au/

Much like Classic Coke, many customers have formed strong attachments to products that have been a fundamental part of their childhood. Attempts to change fundamental attributes while marketing a product the same is always likely to cause outrage. In their defense, a spokesperson for Cadbury added, “The Creme Egg had never been called Cadbury Dairy Milk Creme Egg. We have never played on the fact that Dairy Milk was used.”

One can only wonder if Cadbury would have made a different decision given a second chance.

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

David Bowie: A Tribute to an icon of music and marketing

As the world mourns the loss of another music legend this week, most will be thinking about his mesmerising music. For six decades David Bowie amazed, shocked and delighted his fans with songs about spacemen and life on mars. Many people may not appreciate what a true genius he was when it came to marketing his own personal brand and his music. Bowie’s career is one of constant evolution and reinvention throughout the decades.

His career really began to take flight with the release of the song “Space Oddity”, which was about the fictional astronaut Major Tom on his journey into space. The song was written and released just five days before the Apollo 11 rocket set off on mans first flight to the moon. The song was perfectly timed to capitalise on the mood of the nation and fascination surrounding the historic event.

Source: www.teamrock.com

Bowie himself changed physically throughout the years, from the bright red hair of Ziggie Stardust to the “White Duke” persona. He was able to redefine musical genres and even make successful transitions into both art and film. One of the reasons why I believe David Bowie was so successful is he was able to keep his finger firmly on the pulse of popular culture. He was also able to reinvent both his image and his music multiple times, pushing boundaries and set new trends in popular culture. These are all attributes that the most successful brands in the world would all dearly love to have.

In 2013, Bowie released his then new album (The Next Day) after many years away from the music industry. Most artists would accompany such a come back with a huge PR campaign, but not Bowie. In fact, very few people initially even knew about it at all!

The launch took the world by surprise, as there had been no leaks about the new album, which he had been secretly recording for two years. On the 8th of January the album was released with no hype or fanfare. The news of the surprise launch found its way into the media where it quickly became a major news story. Such a laid-back approach really shows the confidence and self-belief Bowie had in his own brand. In an industry where everybody is shouting to have their voice heard, a different approach along with a well-recognised brand name was able to capture the attention of both the media and fans.

Source: http://athenacinema.com/

David Bowie was a man who was known for doing things differently. His creativity shines through his work in the entertainment industry. He leaves behind a legacy as a trailblazer of musical and artistic trends but also many valuable lessons in marketing.

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

McDonalds but not as we know it

This week the fast food giant McDonalds opened a new concept store in the trendy shopping district of Admiralty in Hong Kong. The interesting glimpse into the future of fast food has seen the introduction of a ‘food bar’ style restaurant with a heavy emphasis on customisation. This is far from the traditional McDonalds model that has made the franchise so successful.

Source: Instagram @vjeffz

The traditional look of a typical McDonalds has also been replaced with ultra modern brush stainless steel and glass food cabinets. This new restaurant known as ‘McDonalds Next’ has an unrecognisable industrial design, with its only identifying features being the golden arches adoring the windows.

Self-service is a big part feature of the restaurant, which gives customers the opportunity to pick and choose the features of the food they eat. This is a long way from the one-size fits ethos that has been synonymous with standardised McDonalds of the past.

As a University of Sydney student I have already been able to experience the new McDonalds style restaurants. Last January, McDonalds launched another concept store called ‘The Corner’ in the leafy suburb of Camperdown. Other than the small McCafe logo, you would be forgiven for not even knowing that McDonalds even operates this establishment.

Source: businessinsider.com

The main difference is you won't find any Big Macs, fries and strawberry shakes at this café. Instead you might find Lebanese lentils, tomato and basil soup, cesar salad wraps and craft soda.

Source: lewisbranding.com

Earlier this year in Australia, McDonalds rolled out the ‘Create Your Taste’ platform across many of the restaurant chains. This offered customers the opportunity to custom build their own McDonalds menu options with a range of buns, toppings, sides and drinks. This new tool has more the traditional McDonalds look and feel, although it does feel slightly strange having waiting staff serve food to your table.

McDonalds are able to charge a price premium for this product and service, delivering your items on an artisan wooden board with even a small basket for the fries.

Source: alluremedia.com.au

These concepts and new ideas show that McDonalds are willing to change and adapt its model to fit the varying requirements of its customers. In 20 years time I believe McDonalds will still be serving its legendary Big Mac, Quarter Pounder and other iconic items, as these are a central part of its history and identity. Whether or not it is predominantly known only as a fast food chain is however another matter.

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

Marketing Trends for 2016

Marketing practices are constantly changing, growing and evolving. With the rises in new technology these changes are happening quicker than ever before. In the past few years alone we have seen digital marketing undergo radical changes to keep pace with new emerging technologies.

It’s not enough to just spot a trend these days and then jump on the bandwagon. It is about looking beyond what we currently know as marketers and trying to stay ahead of the curve rather than behind it. With that in mind, in this week’s blog I will be looking at the top trends in 2016 to look out for.

Relationship marketing
In my very first module in the Masters of Marketing I learnt about the power of relationships in marketing practice. As smartphone proliferation continues to grow in many markets around the world, so do the opportunities for brands to engage and connect with customers.

Relationship marketing is not a new phenomenon but it is becoming increasingly important for many companies. In fact, the brands that are able to make the most rich and meaningful connections are usually those who are the most successful. So think carefully about your customer relationships and how they can be strengthened to create new brand advocates who shout loudly and positively about your business. 

Source: http://www.widenetconsulting.com/

The rise of the CMT
CMT is short for Chief Marketing Technologist. With the rapid rise and dependency on technology in marketing many firms are looking to recruit CMTs to their organisations. So what exactly does a CMT do? They are part strategy, part creative, part technology and part teacher, in short their role is usually to align marketing technology with the business goals of the organisation. CMT work to bridge the gap between marketing and IT, and must be able to seamlessly work between both groups. Many roles with this title will be appearing on the job market in 2016.


Source: http://chiefmartec.com/

Virtual Reality
Earlier this year I wrote a blog about the new technology, Oculus Rift, that allows users to immerse themselves into a virtual world. While it would be silly to predict that virtual reality will be mainstream in the coming year, it will certainly be growing in popularity. In fact, in early 2016 we will finally get to see the first consumer version of the Oculus VR, otherwise known as “The Rift” headset available for sale.

The implications of this new platform for marketing are going to be immense. In the same way that companies such as Facebook have changed the social space, Oculus Rift is looking to change the virtual space. It just so happens that Mark Zuckerberg’s Facebook paid $400 million in cash and $1.6 billion in Facebook stock to acquire Oculus last year.

Source: http://www.htxt.co.za/

Ephemeral and video marketing
What is ephemeral marketing I hear you cry? Ephemeral simply means to last for a very short time. It is usually content that is exclusive or has a very short expiration date. Snapchat has already successfully used this technique in its platform to continue its impressive growth this year. We are now seeing growth in other platforms such as Periscope, Facebook Mentions and Meerkat, which have become popular with the younger generation.

In a world where people have less time and are on the go more often, this ‘less is more’ approach appears to be cutting through. The opportunity for advertising and promotion in live news or broadcast feeds has also gained pace this year. Video ads are beginning to dominate with companies such as YouTube hosting billions of ads each day. With consumers becoming increasingly accepting of video advertisements, the trend of them appearing in unexpected ways on the web looks likely to continue.

Source: https://marqana.com

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

Merry Christmas from the Masters of Marketing

I would like to wish all of the readers of the Marketing Matters blog a very merry Christmas. To celebrate the holiday season, this special blog is all about festive advertisements. It may not be snowing outside but let the countdown begin!

Monty the Penguin
Since this ad was launched in the build up to Christmas 2014 it has gained a staggering 26 million views. The advert tells the story of an unlikely friendship between a little boy named Sam and his penguin friend Monty. The soundtrack to the ad was a cover of John Lennon’s song ‘Real Love’ sung by Tom Odell.

The advert costed £1 million pounds to produce with the total campaign cost coming in at £7 million. The group used to create the CGI animation of Monty the penguin was the same team used in high budget movies such as Planet of the Apes and World War Z.

As soon as the advertisement came out, the stuffed toy version Monty instantly sold out in stores and were being resold online for more than six times their face value. Monty-mania drove John Lewis to have one of their most successful Christmas trading periods in their history.

WestJet Christmas Miracle
If you want a great example of how businesses can engage with their customers in a fun and unique way at Christmas, then look no further than the WestJet Christmas Miracle.

Upon boarding their flight in Ontario passengers were asked what gift they would like for Christmas. As soon as the plane takes off there is a mad dash from the WestJet employees to buy and wrap the presents for the passengers. A few hours later in Calgary the gifts are waiting on the baggage carousel for the unsuspecting customers. Everything from TVs, toys and even socks were delivered to the amazement and joy of the customers.

43 million views later, this advert still continues to spread some fun festive cheer.

Toys R Us
What says Christmas more than toys? This iconic advertisement first came out in 1989, which made me just 6 years old when I first watched it. Since that time it has been remade and updated, but always with the same catchy theme song.

I think it is a testament to really good consistent marketing that I can still remember every word to this ad over a quarter of a century later! There’s a magical place, we’re on our way there, with toys in there millions all under one roof, it’s called Toys ‘R’ Us!

Man on the Moon
If you cry easily, it’s time to look away now!

After the success of Monty the Penguin in 2015, John Lewis has done it again this year with the Man on the Moon. The story shows a young girl named Lily who is looking through her telescope at the man on the moon. Seeing the old man going about his day all alone she decides to send him a give to show him that’s he is loved this Christmas. 

I think this sends a really strong message at Christmas time to remember those who may be unable to speak to anyone. John Lewis partnered with the charity Age UK to help raise awareness and donations to this cause.

Man on the Moon: Parody
The budget retailers Aldi were quick to produce their own cheeky spoof of the John Lewis Man on the Moon Christmas ad. It features an old man sitting on a bench on the moon choosing between two telescopes. Of course the telescope he prefers is the cheaper one from Aldi!

Delivered in a fun way, the advert really captures Aldi’s commitment to offering quality products at low prices that shoppers will be over the moon with!

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

Coca-Cola: The King of Christmas

If there was one brand that really captures the magic of Christmas it must be Coca-Cola. Who would have thought a drink simply made from corn syrup and water would evoke such emotion and have such ties to the festive holiday?

When you think of Santa Claus you usually picture a jolly old man in a red and white jacket with a fluffy white beard. What many people don’t realise is that the origin of this Santa was actually painted by the illustrator Haddon Sundblom and has become the image that we are most familiar with today.  While Coca-Cola had previously commissioned pictures to be drawn, it was Sundblom’s vision of Santa Claus that has become the most iconic. He continued to draw these pictures for Coke for over thirty years. 

Source: http://www.adbranch.com/

Coca-Cola has been featuring jolly old Santa in their ads since the 1920’s and has even helped to shape his very image. Some even go as far as to say that Coca-Cola were instrumental in dressing Santa in the traditional red and white clothing to mirror the brand image of Coke. While this may be a disputed claim, there is no doubting that the Santa and Coke history has been intertwined for almost a century.

For so many of us, the flashing lights of the Coca-Cola Christmas trucks are an essential part of getting into the Christmas spirit. The classic TV ad first appeared over 20 years ago on our screens but fell into disuse in 2001 after a restructure that meant all advertising campaigns would be produced locally for each country.

The ‘Holidays are coming’ campaign featured the famous red Coca-Cola delivery trucks decorated with Christmas lights driving through the snowy hills of Germany. As the truck passes through the town it causes the Christmas lights to turn on and shine with people watching in amazement. By 2007, Coca-Cola reintroduced the campaign back on to TVs around the globe. It is really quite amazing how successful this relatively simple advert has been and still stands the test of time today. In fact, in the UK, the truck has its very own nationwide tour, handing out free samples and opportunities to take pictures with the iconic vehicle.

Source: http://www.coca-colacompany.com/

Last week, Coca-Cola released its newest packaging which allows the owner to transform the bottles label into a festive bow. While these are limited edition and only available in selected markets I think it is another ingenious way to strengthen the products ties to Christmas.  The new packaging has already created quite a buzz on social media with users posting their festive bows adoring their Christmas trees.

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

Twelve Key Marketing Metrics (Part II)

7. Customer Satisfaction
Customer satisfaction (CSAT) is a very important metric to measure for a number of reasons. CSAT is a primary indicator of a consumer's future intentions and loyalty to a brand for repeat purchase. For many successful companies CSAT can also act as a point of differentiation in a crowded market place. High levels of CSAT also help to reduce customer churn, which is the turnover or loss of clients. It can also help to increase CLV by retaining profitable customers since they are often cheaper to maintain than acquire new ones.  Finally, good CSAT helps to reduce negative word of mouth, as customers who are unhappy are likely to tell others about their bad experiences.

8. Net Promoter Score
The net promoter score (NPS) is a metric which can be used to consider the loyalty and happiness of customers and how likely they are to recommend your company to others. Customers are surveyed and fall into three categories depending upon their NPS. Promoters are customers who consistently recommend your company and may include strong brand advocates. Passives are reasonably neutral and would neither recommend nor deter anyone from your company. Finally, detractors are individuals who would discourage people from buying from your company. The NPS is actually calculated by taking the percentage of people who promote your company and subtracting those who detract from it.

Source: https://www.checkmarket.com

9. Share of Customers
Share of customers is also sometimes known as share of wallet and is the amount of a customer's total spend that a company captures through its business operations. By increasing the share of customer, organisations can boost revenue cheaper relative to efforts to increasing market share. The typical way to increase the share of customer is to offer new products or services to existing customers of the business. For example, Nike may capture a higher share of customers by bringing out new lines of trainers to increase its share of wallet.

10. Market Share
The market share metric is useful for marketers to better understand the overall size of a company in relation to the market as a whole and its competitors. Market share is the percentage of a market in total sales that is earned by a company over a specified period of time. It is a relatively simple calculation by taking the sales of the company over the period specified and dividing them by the total sales from the industry as a whole over the same period.

11. Bounce Rate
The bounce rate is an online metric used to analyse web traffic to a particular destination. It measures visitors who enter a website and then leave rather than continuing to click through to other areas. While this metric can be misleading, it can also give you vital information into the success of a campaign. Websites with a high bounce rate usually indicate that the website is not performing well in continuing the interest of visitors. However, Wikipedia pages would often have a high bounce rate as users may land on the page, find what they were looking for and then leave. Therefore, bounce rate should not be evaluated in isolation but can often be revealing.

Source: http://www.recruiting.com

12. Online Visitor Behaviour
Online visitor behaviour to a website can be analysed in a number of ways. For example, you can consider the number of users and visitors to a website by counting page views. Metrics can also be used to measure the length of time on a website and the number of users who return to that page. In converting behaviour to action, metrics such as click-through rate (CTR) can be used to measure the ratio of users who click-through to a particular page including the conversion of page views leading to a purchase.

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

Twelve Key Marketing Metrics (Part I)

Gone are the days when important marketing decisions were made on a whim.

Marketing has become increasingly scientific over the years with marketing performance measured and evaluated to assist decision-making. In this weeks blog I will be detailing twelve key marketing metrics to increase insight and overcome unpredictability in decision-making.

1. Customer Lifetime Value
Customer lifetime value (CLV) is the measurement used to predict the net profit of all future relationships with customers. CLV is an incredibly useful tool businesses use to analyse who are their most valuable customers. Knowing which customers are the most profitable is just as important as knowing which customer segments are less desirable to retain. Calculating CLV helps businesses manage their customer relationships as assets to the company and monitor the impact of marketing investments.


Source: http://csbcorrespondent.com/

2. Retention Rates
Retention in marketing is often used to count customers and track their activity over time. The retention rate is the ratio of customers retained by the company vs. those customers who are potentially at risk of leaving. While driving sales and engaging customers is important, failure to build a loyal customer base and retain the most important customers can undo all your business's hard work. After all, it is always cheaper to retain profitable customers than to acquire new ones.

3. Customer Acquisition Cost
Customer acquisition cost (CAC) is measured by calculating the costs associated with convincing a customer to purchase your product or service. The reason why this is such an important metric is that it is used in calculating the value of the customer to the company and how many resources should be used to attract a particular customer segment. CAC is particularly useful for established businesses that may be considering targeting new markets and customers.

4. Profit Margins
Profit margins are simply a measure of profitability. Today's marketing managers are often asked to evaluate the profitability of their campaigns. A campaign with a high margin reflects high levels of profitability, whereas a campaign with a low margin reflects low levels of overall profitability.
 

Source: http://www.industryweek.com

5. Return on Marketing Investment
Return on marketing investment (ROMI) calculates the contribution that marketing spending has made to profit. This metric can be used to measure the overall effectiveness of a campaign and help aid marketers in their decision making for future investments. ROMI is calculated by comparing revenue gained against a business's marketing investment. It is often useful to compare effectiveness across many marketing activities in percentage term, which makes ROMI particularly useful.

6. Internal Rate of Return/Net Present Value/Payback Period
The internal rate of return (IRR) metric is used to measure the profitability of potential investments. When considering if a marketing project is worthy of potential funding the IRR can be used to better evaluate the decision.

The internal rate of return is actually the discounted rate that makes up the net present value (NPV). NPV is a metric used to evaluate long-term projects and is also a key part of determining ROMI.

Payback period is simply the length of time that it takes to cover the cost of an investment. The length of this period can help to determine if a project is viable.

These metrics are key for marketers in order to justify new campaigns internally to other departments. It is also a useful practice to measure these when considering if a campaign has been a sound financial investment in the long term.

Be sure to check out part II tomorrow for the following six marketing metrics!

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

Black Friday and Cyber Monday: A Marketer’s Perspective

Black Friday is an annual tradition observed in the United States on the day following Thanksgiving. This day officially marks the beginning of the shopping season and sees retailers slashing prices and offering “special deals” to customers. Cyber Monday occurs on the first Monday after Thanksgiving and was first coined in 2005 to encourage shoppers to purchase online. Since then it has become the busiest online shopping day for many countries around the world.

Source: http://3dprint.com/

In recent years these flash sales have seen shoppers spending increasing amounts in a feverish attempt to snap up the very best bargains on offer. This often results in chaos, crashed websites and unfortunately, even tragedy. However, more than 13 billion dollars was spent in the US between the Black Friday and Cyber Monday sales. The growing trend in recent years has seen increased spending online rather than physical in-store sales.

The Black Friday and Cyber Monday sales that originated in the United States have in recent years spread to the United Kingdom, Canada, Brazil, Portugal, Germany, Colombia and Japan. While not as commonplace just yet, Australian retailers have begun to embrace the tradition and jump on the Black Friday bandwagon. An estimated $329 million has been spent this year, which is almost double the previous years spending.

So is this all simply just hype? Or a clever “marketing” term to create artificial demand. Consumers these days are more perceptive than ever and are easily able to spot a bad deal from a good one with online comparison tools. With the rise of social media, consumers can easily spread that message loud and clear if they feel they are being mislead. One of the most interesting developments I have seen this year has come from companies shunning the tradition and declaring themselves against these flash sales. In fact, in the UK retailers such as Jeep, Aldi and John Lewis have used this stand as a marketing tool to promote their own on-going price reductions.

Source: http://i.haymarketindia.net/

One thing is however undeniable, Black Friday and Cyber Monday represent a fantastic opportunity for companies to sell products before the busy Christmas period and is somewhat of a marketers dream. For retailers, this is a time to send emails fearlessly to their databases offing smart discounts and activating their top customers. It also offers a chance to be active on social media and engage with customers through clever ads.

Mobile devices are making this instant flash sales shopping even easier for consumers with “shopping on the go”. In 2014, more than 60% of Amazon's US customers purchased using a mobile devise. The increased ability to shop online has made it significantly easier for shoppers to search for and stay connected to the deals that they are most interested in.

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School