V ENERGY • DIGITAL OOH • EFFECTIVENESS OF SOCIAL MEDIA • 31ST AGENCY ‘RADICAL’ TRANSPARENCY • GLUE SOCIETY • ADLAND CONFESSIONS • SPORTS ADS From mass multiplayers to gaming geeks From chocolate pops to health nuts From beer buddies to gin slingers Connect with the right audience, on the right screen, at the right time. Talk to the leaders in data-led TV advertising. . . Editor Pippa Chambers (02) 9213 8284 0411 592 390 email@example.com News editor Arvind Hickman (02) 9213 8240 0447 243 466 firstname.lastname@example.org Publisher James Yafa (02) 9213 8293 email@example.com Associate publisher Nicola Riches 0405 661 570 firstname.lastname@example.org Digital editor Lindsay Bennett (02) 9213 8294 0430 155 925 email@example.com Journalist Josh McDonnell (02) 9213 8308 0448 337 455 firstname.lastname@example.org National sales manager Paul Carroll (02) 9213 8288 email@example.com 8 Business development manager – sponsorship Amanda Wilson (02) 9213 8292 firstname.lastname@example.org 26 S U B S C R I P T I O N S 1800 807 760 email@example.com Please contact us for subscriptions for the print edition. Or visit www.greatmagazines.com.au. Access to the digital edition Zinio. com. 1-year print subscription Aus $80. Print and digital $88. New Zealand $110; APAC $125; Rest of world $170 Digital-only subscriptions can be purchased via Zinio. Annual subscription $47.29. Single issues $4.99. INVESTIGATION AdNews runs the rule over social media,its effectiveness and how success is measured Managing director Tracy Yafa Advertising production Kristal Young (02) 9213 8301 firstname.lastname@example.org MEMBER Published monthly by Yafa Media Pty Ltd | ACN 54 002 699 354 | 17-21 Bellevue Street, Surry Hills NSW 2010. All mail to GPO Box 606, Sydney NSW 2001 Australia. Founded in 1928. TEL 02 9281 2333. FAX 02 9281 2750. WEBSITE www.adnews.com.au EMAIL email@example.com © Yafa Media 2018. All rights reserved. No part of this magazine may be reproduced without the written permission of the copyright holder. ISSN 0814-6942 Marketing manager Sabarinah Elijah (02) 9213 8245 sabarinahelijah @yafa.com.au Digital manager Anthony Peet (02) 9213 8336 Group production manager Matthew Gunn (02) 9213 8210 Customer service manager Martin Phillpott (02) 9213 8325 47 5 www.adnews.com.au | May 2018 Contents MAY 2018 36 Regulars 8 SPOTTED: adland AdNews’ monthly update on the faces of NEW 14 SPOTLIGHT: We shine a light on smaller or more unique agencies in the industry that are making a big impact NEW 36 MEET THE TEAM: Creative indie The Glue Society are still sticking to the unknown after 20 years 40 THE BIG QUESTION: What is radical transparency and who actually cares? 42 ADLAND SECRETS: adman gone solo Confessions of a media network NEW Creative 6 18 AGENDA Digital out of home explored BEHIND THE COVER: Behind the creative brilliance that is our May front cover NEW 12 THE WORK: Behind V Energy and TKT Sydney’s Wasteland with a V ad 47 CAMPAIGN REVIEW: AFL versus the NFL: Who scores when it comes to advertising? Online 12 adnews.com.au Go online to get the latest news and analysis every day. www.adnews.com.au twitter.com/AdNews facebook.com/AdNewsAustralia AdNewsAustralia youtube.com/adnewsaust AdNewsAustralia Behind the Cover Make your own truth A li m it e d b e sp o ke e d it io n tro p hy is Ad N ews ‘A’ a ls g ra b s fo o u p fo r th e r th e w in n e r. The creative contingent of adland sits at the beating heart of the industry. To fully embrace that, and with a mission to create awesome and inspiring covers, each month AdNews hand-picks an agency to work their magic. The cover of the year is then voted for by readers. T o reflect the current magazine's investigative feature here we have the end product, by AdNews Agency of the Year 2017, CHE Proximity. AdNews editor Pippa Chambers speaks with CEO of CHE Chris Howatson. Credits Thoughts on the social media brief? Chris Howatson, CEO The brief was interesting but there wasn’t an immediately evident theme. It was about a fortnight before the Facebook/Cambridge Analytica news broke. We briefed our media leadership team, Dan and Calvin in particular, and asked them what they care about when it comes to social. Within 30 minutes they’d suggested two territories. The irst was what counts as viewable. The second was who measures efectiveness. In the absence of third party auditors, many social platforms ‘mark their own homework’ when it comes to deliverability, so this felt like an interesting space as well. From then what happened? Usually we’d write a brief, then get together with a diverse group of thinkers to conceive an idea, but there was a lot of work on and we were short on time. We came up with the idea that the social platforms were ‘making their own truth’. Ant is brilliant at talking seemingly familiar language and shaping it to be fresh, so he got us to the line and territory. The take on the famous moon landing production was something we found our way to. After UFOs and the shooting of JKF, there’s perhaps no greater conspiracy in recent western culture than the moon landings. How would you describe the cover? We thought we’d create a modern take on the moon landing conspiracy, with the heads of the social media families running the show. In the shadows of the set you’ll see Facebook founder Mark Zuckerberg, Google co-founder Sergey Brin, Twitter boss Jack Dorsey, Snapchat leader Evan Spiegel and founder of LinkedIn Jef Weiner. Each with phones in hand, documenting their own version of the truth. People and execution, what was involved? Sir John Hegarty famously said, advertising is 80% idea and 80% execution. This was so true for us. We had a lovely idea that poorly executed would’ve been a disaster. So we put our crafters to work. We called production company Agency: CHE Proximity Ant White, CCO Andrew Drougas, COO Brian Jefferson, Group Creative Director Sam Dickson, Senior Copywriter Cameron Bell, Senior Art Director Tom Weller/Natalie Hort, Production Managers Production Company: Louis&Co Photographer: Ian Butterworth Retouching: Cream Electric Art Studio: Carlotta Studios Louis&Co and asked them to be involved and have always admired photographer Ian Butterworth’s work. Then Sam, Cam, Nat and Tom worked with their teams to make it happen. We shot on a Sunday at Carlotta Studios in Artarmon and spent a week in retouching to convert cardboard cut outs into real people. Any big challenges or easy wins? Finding the location was key, as having the existing staircase look as close to the original as it did meant we had a core base in which to build the composition and gave the visualisers at Cream Electric Art a solid foundation to work upon. The space suit was tricky. We have all seen the cheap fancy dress outits on the Halloween rack and this just wouldn’t have cut it. The suit itself we hired (the only one in Sydney), but a lot of attention went into padding out the suit with the model so that it felt like it was illed with air. The vintage film camera, gyprock imitation lunar surface, carefully selected body doubles, extensive image searches for our ive key social gurus as well as the subtlety of the lighting and shadows all added to rich detail that makes up the inal art. Editor’s Letter Welcome to the first full AdNews edition with our new team fully settled in. You’ll notice a few changes, a splash of fun and a hint of mischief in this issue. We’ve handed over our precious monthly canvas to the fine creative minds that make the industry go around – with a competitive edge to it of course. We’ve also added a people of the industry focus in our new Spotted spread, zoned in on smaller or more unique agencies in Spotlight, shot an injection of fun in with our tongue in cheek illustration and have slid in a cheeky confessions section with Adland Secrets. Not having all our content online always frustrated me in my former role as a greedy digital editor at AdNews. I wanted everything on the website – everything. This new role has made me think harder about what we look to the magazine to do for us and the first thing that jumped out at me was putting our front cover to better use. What better way to E D I T showcase the creative brilP I P P A C H liance from adland than letting them loose on the front cover – and what better agency to use than our very own AdNews Agency of the Year, CHE Proximity. I thought I was excited about the idea, as in really excited, but after a few chats with CHE, who were what I would describe as pumped, energetic, positive and raring to go, that my excitement rocketed to a whole other level. It also got me thinking about the whole process of clients, briefs, agencies pitching ideas and seeing that all come to life, and how (kind of ) being amidst this process was such bloody good fun – and www.adnews.com.au | May 2018 actually largely in part due to the enthusiasm and effort of the agency. Needless to say we are thrilled with the cover. I hope readers feel the same and standby for another six covers for 2018, including our coveted AdNews Annual celebrating 90 years of advertising. In-print you’ll also get access to in-depth features, people stories, and much more. And as a taster of what’s to come, there’s also a special New Zealand issue in the works, Power 50 and much more on people and culture. The cover, our feature on The Work and our Creative Review, which sees senior industry execs critique ads, are just a few in-print items focusing on the creative and it’s an area we plan to ramp up on even more. As loyal AdNews magazine readers, it’s also important you know about the full AdNews offering, not just in-print. For those that don’t know, our revamped podcast, now recorded at Universal Music, O R lands this month so take a lisA M B E R S ten. Also, check out our ‘New Frontier of Data Security’ event in Sydney on 6 June. And for those that missed our Media & Marketing Summit in Sydney, the Melbourne event is 25 July. As the industry changes so must AdNews and while changes are afoot, there’s always room for more. I’m very much still in canvas mode and am looking to hear more about what people want and need from their favourite industry publication. Whether it’s print or online or even our events – AdNews is here to serve the industry and my mobile is always on. 7 Spotted Spotted ADNEWS’ MONTHLY UPDATE ON THE FACES OF ADLAND In this new section of the magazine, we’ll be travelling around the weird and wonderful world of adland and bringing you the best snaps of events and a few social selfies along the way. W O R D S J O S H B Y Working out what worked The best of the best Douglas Nicol, keynote speaker and creative partner at The Works, packaged up 10 days of ideas into a 60-minute presentation with all the highlights from SXSW. Larking about with Lund M C D O N N E L L Do you have a pic for our June edition? Email firstname.lastname@example.org Turning on the Tech: The Superpower of Creative Marketplaces was a joint event between Tribe and Canva, all about talking tech and how to harness the power of creative marketplaces. The man about town Jules Lund grabs a quick selfie with Liz McKenzie, head of PR and comms for Canva. Jail time Last year industry charity UnLtd raised $27k in a charity prison Bail Out event. This year several familiar industry faces are brave enough to try a stint in the big house. Mobiles are not permitted so there will be no LinkedIn updates – you’ll have to keep an eye on AdNews for the details. Our trusty news editor Arvind Hickman (most serious looking one in the pic) will be there with bells on. Don’t adjust your eyes, this is a real book. I’m sure the recipe for disaster is in there. A late April Fool’s? Alan Jones & Mark Latham hosted a lunch at Manjit’s Wharf for what was called a “story-filled lunch to celebrate the launch of their upcoming cookbook ‘Conversations in the Kitchen’.” It’s meant to be a charity event Arvind, not your audition reel for the next season Prison Break. www.adnews.com.au | May 2018 Too cool for water Vice puts the squeeze on content Ex-adman turned TV hot property, Todd Sampson, took time out from adventuring to sit down with the good folks at News Corp’s Wentworth Co Vice hosted an event dedicated to the future of content as the company continues to make strides in its content partnerships, most recently launching ‘Illuminated’ presented by Nissan. It dug into the creative process that’s not just making something weird for the sake of it, but ultimately lands the brand message and leaves a lasting impression. Oh, and did we tell you AdNews has a branded content division too? 9 Ahh Todd, not getting in the water and talking about it over banana bread...think you’ve got the Bondi lifestyle down pat. No Country For Old Content pulled a crowd We can all get along ABOVE: Ryan from Married at First Sight gives us his ‘tight five’.....and no that isn’t a joke LEFT: PHD account executive Beatriz Grattan-Smith took out the top prize at The Voice Agency Battle, stunning everyone with an amazing rendition of Son of a Preacher Man. A positive tune for media agencies Taking place at The Beresford in Sydney, nine of Sydney’s major media agencies went head-to-head for vocal supremacy as Nine hosted a Karaoke Battle for agency clients to celebrate the new season of The Voice. Starcom and the AANA hosted a presentation of findings from the 2018 Starcom Media Futures Survey. Starcom presented a new approach to creating brand value from human experience, based on the emotional drivers of behavioural change. Starcom’s Martin Hadley and Facebook’s Tom Hosking apply the ‘buddy system’ at Starcom’s ‘Media Futures’ event. Picture This This is your marketing powered by programmatic. AdNews Awards Winners www.adnews.com.au | May 2018 11 THE MONKEYS’ BEST YEAR YET SCOTT NOWELL, MARK GREEN FABIO BURESTI & JUSTIN DRAPE It’s been a big year for The Monkeys. The agency was acquired by Accenture Interactive, launched a Melbourne office, added a significant number of people to its team and won the creative accounts for Holden, CrownBet, Canadian Club, Asahi Beer, Australia Post and NRMA. In fact, 2017 was the agency’s biggest year in its 12-year history, as revenue climbed and proit soared. With the agency’s purpose to “make provocative ideas happen”, The Monkeys delivered a diverse range of work that encompassed beer brands to aeroplanes, bras to pizzas, and meat to sports shoes. And the proof is in the many puddings, with The Monkeys’ string of award wins internationally and locally, at Cannes, D&AD, the Eies and One Show. Most recently, the agency was named NSW Agency of the Year at the AdNews Agency of the Year Awards and took out AdNews’ irst Efectiveness Award for its Meat and Livestock Australia work. For Group CEO Mark Green, he struggles to pinpoint his proudest moment of the past 12 months, but said it always comes back to doing ground breaking work for iconic Australian brands, from Qantas to Telstra and now NRMA, Holden and Australia Post. “For an Australian business that built its way up in this country, it’s a proud moment when you can look on your portfolio of iconic Australian brands and see big work you’ve produced that’s The reason for success? It always comes back to “doing iconic work for iconic Australian brands”. successful and liked in equal measure,” Green said. “We never thought we wouldn’t be here, but it’s one thing to have a vision and a dream and it’s another to have it realised – to start a business with three people and organically grow to the 160 odd people that we are today.” Ask any agency founder who they admire in the industry and ‘The Monkeys’ is always top of the list. It’s not hard to see why with a highlight reel that boasts MLA’s ‘Celebrate Australia’ and ‘Spring Lamb’ campaigns; the emotional Qantas Dreamliner campaign on the successful ‘Feels Like Home’ platform; and a new brand platform for IKEA: ‘The Best Day is the Everyday’. The agency produced its irst work for Holden, and its work for Berlei named and launched a new kind of bra - Womankind. For NRMA, it showed what gets Australians on the road with a heartfelt Christmas story and launched a new brand platform for CrownBet – A Better Way to Wager. “There is no luck involved,” said Green. “We have created our own luck from the crazy commitment from the founders and the consistency of the management team.” It’s this consistency of leadership and creative ambition that Green said has driven years of success for The Monkeys, but the agency certainly hasn’t become complacent, giving up its independent title after a decade to facilitate its next step. Green described Accenture Interactive as a “rocket ship” now attached to the agency, allowing it to add skill sets and explore the best opportunities for growth and expansion. “People are griping about the challenges the industry faces, but we are seeing strong opportunity and we aren’t taking any backwards steps.” For Scott Nowell, group chief creative oicer, seeing Celebrate Australia contribute to the national agenda through its commentary on the #changethedate movement, its Berlei ad make the news for having boobs banned from Facebook and Qantas work loved by the majority of Australia – that’s what matters. “You know you’re in a good position when your work is talked about on the streets,” Nowell said. “Our aim is to always afect popular culture.” Winning the first AdNews’ Effectiveness award for MLA, driving a 23% lift in sales during the campaign period of Celebrate Australia, The Monkeys know their work works. “Our work is all about making provocative ideas happen and that’s how we intend to continue. We will keep making work that doesn’t get ignored, that elicits response and captures people’s imagination to establish a meaningful brand connection,” Green said. “We are in a great position to take the industry into a truly exciting place,” Nowell added. The work Energy was experiencing declining sales and relevance among 18 to 24 year–olds who had shifted their attention from TV to gaming platforms like Twitch. With gaming now bigger than Hollywood, two members of TKT Sydney’s creative team, Shaun Thomson and Emil Cholich, who happen to have a passion for gaming, found the brand’s next foray. Instead of diving into the Wasteland with a V overcrowded sponsorship space, Agency: TKT Sydney its strategy was to create playable content. Brand: V Energy Frucor Suntory marketing director Mark Wiedermann was W O R D S B Y wary about the venture and L I N D S A Y B E N N E T wanted to avoid just slapping the V Energy logo into a game. “We knew gaming could be a great move for us, but I was cautious how we got into that space because it is a real deep passion point for a lot of people and has high level engagement,” he explained. “If we got it wrong, we knew it could do more damage than good and piss people off.” Eventually it came down to the trust Wiedermann had in TKT Sydney, having worked with the Clemenger–owned agency for a number of years. He now celebrates the gaming venture as “one of the most successful things the brand has done”. TKT Sydney identified a game to become part of, with millions playing it weekly. The game is a popular post–apocalyptic, role–playing video game. Best of all, it was open to modding — the ability to change a game’s files and content, bringing to life ‘Wasteland with a V’. The campaign started with a covert post on Reddit asking gaming fans how they would “improve the game a bit”. It was a less than subtle reference to V’s branding which claims the drink is “the hit that improves you a bit”. Almost 100 responses informed the content for the game mod — a file that edited the game itself. V Energy drinks were added to the game and when players ‘drank’ it, all their in–game attributes improved ‘just a bit’. V Energy was then found in branded vending machines within the game, labelled Property of Shameless Product Placement Inc. Two top–tier Twitch streamers were enlisted to broadcast TKT content to 600,000 followers. Thousands of Australians spent their Friday night streaming more than four hours of V–branded content, equalling 100,000 hours spent with the brand. Not only did it reach a new audience in an innovative way, but the initiative also earned TKT Sydney the award for Best Branded Content at the AdNews Agency of the Year Awards. Wiedermann said now the brand has successfully tested gaming as a new medium, it is exploring how it can take it further — a move that he said gaming technologists are welcoming. “My challenge now is going to be exploring how we can get into gaming with all our brands at Frucor,” Wiedermann said. “That said, I have a very passionate belief that brands can overstate their roles in consumers’ lives, so unless our other brands have a role to play, like V, then we’ll stay away.” V Wasteland with a V www.adnews.com.au | May 2018 What the agency says: TKT creative directors Shaun Thomson and Emil Cholich “The V Mod was a really great way for us to push ourselves to write and design for a completely diferent format. Writing dialogue trees that branched out into hundreds of options and designing texture for 3D objects are both exciting challenges for copywriters and art directors, respectively. Learning new software, we think, also gives you a really good understanding for how others work and we definitely can work with the developers in the agency on a whole ‘nother level now’.” 13 Spotlight 31ST:SECOND coming up first Spotlight shines a light on smaller or more unique agencies in the industry that are making a big impact. This month’s agency is 31ST:SECOND. Launched nine years ago and headed up by directors Adele Te Wani, Vaughan Kerr and Rachael Egan, the impressive 12–strong team has worked across clients including Arnott’s, Sensodyne, Campbell’s, Jack Daniel’s and more. W O R D S J O S H B Y M C D O N N E L L Why did you start this company? We launched in 2009, when below– the–line agencies were generally either promotional or experiential agencies. We could see the evolution and increased importance of the purchase journey discipline and knew that we could do things a little differently by creating an insights–led specialist agency. What services do you offer and how has this changed since you launched? The marketing landscape continues to change and evolve. Clients continue to take work in-house. Digital disruptors impact retailers. FMCG brands continue to be squeezed by retail customers. In response, we’ve developed a full–service Purchase Experience (Px) capability, to ensure that 31ST is the trusted custodian of our client brand’s purchase journey. We’ve broadened our offering to develop channel–agnostic purchase journey solutions that deliver value via strategic planning; branding and packaging; channel–agnostic big ideas; digital and social; live brand experiences; and in–store visibility and display. What’syourpointofdifference? 31ST was also a finalist in the Small Agency of the Year (independent) category at this year’s AdNews Agency of the Year Awards. Our full–service Px capability means that 31ST is the trusted custodian of our client brands’ purchase journey. Px allows us to leverage efficiencies via one point www.adnews.com.au | May 2018 15 What has been the agency’s biggest challenge? Vaughan Kerr of contact; execute with excellence as the one team knows and understands our clients brand challenges; and seamlessly deliver campaign consistency across all phases and touch points. What makes your team unique? As a collective, we’re a down–to–earth, curious and effective bunch of purchase journey marketing specialists. Agency Snapshot NAME OF AGENCY: 31ST:SECOND TOTAL NUMBER OF STAFF: 12 LOCATION BASED: WATERLOO, SYDNEY Who is your ideal client? Without being super-cheesy, we’re genuinely lucky enough to have quite a few of these already. We’d define our ideal client as that who treats us as a partner in their business — they take us along for the journey and share in their brand challenge/s; ‘own’ their projects — they’re engaged, involved and all over the detail, and expect the same from us. They value our contribution to their business and appreciate that we are specialists within our field. They understand the ROI for engaging us, are happy to pay for our services, and they’re great fun to work with. Often, it’s the people within the brand that we are most motivated to work with and keen to push the boundaries with test and learns. The big ideas keep us juiced so we love clients that want to go there with us. LIST OF A FEW CLIENTS: CSR, AUSSIE, LION, MARS, MASTERPET, MEAT AND LIVESTOCK AUSTRALIA, NESTLÉ, PANASONIC, TAYLORS WINES, TAUBMANS COMPANY MANTRA: WE DESIGN SIMPLICITY In a time of procurement–led, centralisation of global communications networks, we’re an independent small agency. We’ve lost a couple of big clients over the past couple of years as a result of decisions made out of New York (and not necessarily supported by our local clients). Whilst deflating at the time, we’ve worked through these challenges to ultimately become a better agency. Our strategic and creative product is best–in–class, supported by an outstanding account service team. Oh, and that’s not just us beating our own chest, we continually hear this played back to us via participation in RFPs and from our clients. Biggest highlight? Winning our first pitch, a big multi-film summer campaign for 20th Century Fox. It was our first–ever pitch as an agency and we pitched against some of the bigger agencies and won. We knew at that point that our business plan and proposition stood up and we were away. We went on to work with 20th Century Fox for the next five–plus years. We’ve also been so fortunate to work with a truly great bunch of people throughout the journey — many of whom have been with us for over five years and are like family. What’s the dream brief? How do you view the competitive landscape? Regardless of the brand category/channel/sector, the scale and scope, or the potential award–worthiness of the idea, no question, the most fulfilling professional experiences are when we collaborate with our clients to help resolve their brands business challenge/s. Clients that engage us in their business challenges, get our morning shower/driving to work mindspace — these are the ‘dream briefs’. Many of our shopper marketing agency competitors are finding it tough out there at present. FMCGbrandsareunderhugepressure/margin squeeze, which effects their advertising and promotion Why do you like working at the agency? Strategy director Taby Taylor-Ziane “The people and the ideas are what I love most about 31ST. Culture comes first here and that directly translates to the quality of ideas — just a bunch of positive, curious, down–to–earth people getting together everyday to create ideas that add real value for our clients. I love hanging out with them and getting to think, create and make an impact — not much beats that.” Creative director Dave Ridgley “I had worked with Vaughan, Rach and Adele at a previous agency and jumped at the chance to get in on the ground floor of 31ST as I knew the culture they wanted to create. That was eight or so years ago and it’s a credit to them that while the agency and the industry as a whole has evolved, that foundation culture has remained. There’s a great bunch of people here all working together to do really strong work and our long–term partnerships with clients are a testament to both the culture and the creativity it fosters.” Senior designer Hannah Le Cornu “I’ve worked with 31ST for almost five years, starting as a junior designer and growing along side 31ST. Vaughan, Rach and Adele have created an agency with creative, like– minded, talented staff that all work together to deliver a high standard of work and a great culture that makes it easy to come to work each day.” Spotlight budgets. Clients take more work in– house. Mainstream creative agencies continue to leverage their up–stream client relationships to deliver big, integrated promotional activations (that were once the domain of agencies like us). Clean store policies in grocery and big box hardware/ pharmacy continue to reduce our campaign touchpoints/scope. • Share and celebrate: Led by our ‘culture club’, we celebrate the completion of big client projects, pitch wins, EOFY, Melbourne Cup, Christmas, and even get the kids and pets together for a family day once a year. • Commitment to diversity: 31ST was founded by two female directors. And our ECD is female. To this day, we continue to hire on merit, with 75% of our employees being female. What’s on the agenda for 2018? Notable ‘people and culture’ efforts made by the agency: Office pet Huddy, described as “a welcome, gentle soul in a chaotic office”. Our people are a key driver and central to our future success. Good people are hard to attract and super–important to keep. So we attract, motivate and retain the best talent with a bunch of employment/culture initiatives: • Work life balance: We all need to zip out to pay the rego, take the morning off to go to the dentist, leave early to pick the kids up from school or even knock off early on a Friday to go to the beach. • Bonus days off: We gift all staff their birthday and Christmas break. • Random acts of kindness: We gift massages in recognition for the ‘overs’, give thank you gifts on staff 31ST anniversaries, and we often take staff out for impromptu Friday lunches at the pub. • Knowledge: We invest a bunch on training, conferences, offsite and education. We’re excited to be on the move. We’ve been based in Danks Street, Waterloo, since 2010 and are looking for a change of scenery (we have our eye on a funky Redfern terrace). New business and some epic campaigns — lots in the pipeline for the likes of Lion, Nestlé, and Panasonic. Why is the 31ST the one to watch in 2018? Recently we pitched and won three of the biggest shopper marketing pitches in the country for Lion, Nestlé and Brown–Forman. Each RFP pitched us against eight to 12 of our competitors in a forensic/exhaustive process. We won all three, with all clients citing our market–leading strategic and creative product as setting us apart from every other shopper marketing agency in Australia. 31ST staff: Hard at work Top three What are the top three pieces of work the agency has produced and why? 1 Arnott’s Lighter Lunch The first of its kind and now in it’s seventh year, Arnott’s Lighter Lunch is a hugely successful insights–led shopper marketing campaign, developed by 31ST. For the first time, Arnott’s Lighter Lunch bought together Arnott’s crispbread brands (Cruskits and Vita–Weat), Woolworths Fresh produce (like tomatoes and avocados) and Tassal Salmon to deliver an inspiring, ease–of–shop lunch solution conveniently located right before shoppers hit the bread aisle. The campaign was crafted to deliver a unique three–way–win for the brand, the shopper and the customer. It continues to be cited as the best–in–class shopper marketing campaigns and delivers enormous ROI for Arnott’s some seven years later. 2 Jack Daniel’s In 2017, we developed a shopper–first platform that helped Jack Daniel’s become the number one spirit brand in Australia. With every Tom, Dick and Archie creating a craft spirit, it was time for Jack, the original craft spirit entrepreneur, to step up and own his place as the original. So, we designed a shopper-first comms platform via integrated on – and off-premise campaigns. Every element was crafted to tell the provenance story of our friend Jack, who was suffering from a serious case of mainstreamitis. From handmade bottle cradles crafted from the oak barrels that matured the whiskey, pilgrimages to Lynchburg (Tennessee) to see and sample the whiskey at its source, and one–of–a–kind batches from a barrel hand–picked by the master distiller, every prize, experience and interaction reinforced Jack’s credentials as the original independent spirit. Australia was on board with our heritage and authenticity message, and together we raised Jack to the news that in 2017 Jack Daniel’s was crowned the number one spirit brand in Australia — a result worth savouring. 3 Meat and Livestock Australia In the past four years that we’ve been working with Meat and Livestock Australia (MLA), we brought the country together over lamb on Australia Day, made beef the ‘Greatest Meat on Earth’ and helped sell thousands of tonnes of Aussie meat. As part of an interagency team with The Monkeys and MLA’s shopper marketing agency, we led its retail campaigns across butchers and supermarkets nationally for the Australia Day lamb and beef campaigns. We engage audiences without interrupting them. We have the most comprehensive national network. We have quality in our DNA to ensure your ad is delivered with impact all day, every day. We are your next winning campaign. It’s not outdoor without us. www.apnoutdoor.com.au Agenda DOOH or die In its dogged quest to bring the medium into the digital age, the out of home industry is focusing on audience measurement and independent campaign delivery reporting for digital screens. AdNews explores how a new measurement system should evolve. W O R D S A R V I N D B Y H I C K M A N Agenda ne of advertising’s oldest mediums, out of home (OOH), has been modernising at breakneck speed over the past few years. When you drive on any city motorway, visit an airport, or catch public transport, chances are you’ll notice plenty of bright, luminescent digital screens at key intersections along your journey, and they’re sprouting up everywhere. Moving to digital has unlocked new opportunities for advertisers, but it also presents the OOH industry with a fresh set of challenges. Charmaine Moldrich, CEO of Outdoor Media Association (OMA) and MOVE, said the next stage has to be “to prove the power and efficacy of that digital network to the people who buy it”. However, Val Morgan chief executive, Dan Hill, who recently took oversight of Val Morgan Outdoor on top of the cinema sales business, approaches the industry with “fresh eyes”. O “There is an arms race on for technology and data that vendors use to provide a reasonable outcome to media agencies and the client.” Val Morgan chief executive Dan Hill “There is an arms race on for technology and data that vendors use to provide a reasonable outcome to media agencies and the client,” Hill revealed. “There’s no doubt the outdoor industry, including ourselves, is behind [other media categories]. The industry as a whole needs some sort of metric that everyone agrees on and we need to better understand what agencies want.” The transition from classic print billboards to digital screens has been rapid and relentless, driving high levels of growth to outdoor vendors. In the past five years, the share of digital OOH revenue across OMA members, which account for most of the major vendors, has risen from 11.3% ($61.92 million) to 47.4% ($373.4 million) in 2017. This has helped the outdoor media sector grow net media revenue by 6% to $837.1 million, at a time when most traditional media channels are either struggling or in decline. The proliferation of digital screens has allowed the OOH industry to increase its audience by 23% over the past seven years, well above Australia’s population growth of 15%, reaching a critical mass that allows digital networks to be truly mass reach advertising platforms. Moldrich said the industry has primarily focused on building its digital outdoor network as well as working with governments on digital advertising regulations. “We’ve been working with road authorities to get them to a point where they understand that the digital network isn’t a risk to road users,” she explained. “The reason why Australia is a little behind other big Western nations who have had a digital network up for quite a while, is because we’ve had to deal with government regulation. And Australia has some of the strictest road safety standards in the world.” An example Moldrich gave was the NSW Government only releasing its electronic sign guidelines this year, indicating an industry that is in its infancy when it comes to digital screens and how they fit into society. Growing complexity Last year, an AdNews report revealed market concerns about a lack of sophisticated audience May 2018 measurement tools for digital screens, as well as an independent proof of display reporting tool. Unlike classic print billboards, which have a 100% share of time on display, digital screens can host several ads at one time on rotation. This means advertisers can have as little as a 10% share of time on display (10 rotations) to full display, and several iterations in between. But, a 20% share of display (five rotations) is the most common option. “The issue that we face as an industry is how do we move from MOVE, which was built in a static world when we are in this digital world now with myriad amounts of faces involved,” QMS Media national sales strategy director Christian Zavecz explained. “As it stands, there’s no delineation between digital and static.” MOVE is the current audience measurement system for OOH advertising and tracks the likelihood a sign or screen is seen. It works well for static advertising that doesn’t change for long periods, but does not cater for screens where advertising rotates. Ooh!Media chief executive Brendon Cook believes there are several factors at play that can have an impact on the effectiveness of digital screens. “When you bring digital in, you’ve got to have not only model data, but also real–time data, as well as context to display luminosity and environment data,” he revealed. “There’s a whole range of new data sets that are needed to truly bring to life the true power of what the new OOH can deliver. “We spent three years and hundreds of millions of dollars developing this digital opportunity, and now we’ve got to equally spend as much time, energy and money making sure we get all these other factors right.” The next MOVE The OMA recently revealed it is investing $10 million to “rejuvenate” MOVE to accurately measure audiences for digital OOH signs. OMA is working with the AANA and MFA to set up a framework and project guidelines, which are due to come out later this month. The peak industry body also said it intends to standardise the terminology and the way in which share of display is priced for roadside billboards, which accounts for around 40% of all outdoor revenue. Moldrich couldn’t share any further details with AdNews at the time of writing, but indicated that MOVE will “build on what we have” and look at best practices abroad. There are currently several different types of data collection techniques used around the world. In the UK, the Route System uses a GPS tracking device to monitor the movements of a panel of people. And in the US, Geopath is advanced in the use of mobile data, which uses smartphones to determine movement by tracking mobile, Wi–Fi and GPS data from smartphones. JCDecau x ch ief execut ive Steve O’Connor told AdNews that at the core of a good audience measurement system is “very robust consumer mobility data”. He said he would like to see a 21 Agenda combination of mobility data sources to form a clearer picture of audience movement. “My view is that the consumer mobility component of MOVE needs to be addressed to provide a lot more granular detail about people movement,” he explained. “From that, you can start measuring shorter periods of display, which is what digital provides.” Zavecz believes the industry will end up with “an element of quantitative measurement, whether it is mobile phone or SDK location forms of data … overlaid with quantitative studies about engagement, intent, and the power digital can bring to enhance communication platforms”. Findingcommonground Location–based data is important, but it’s not the only issue the industry is grappling with. Finding a level of consistency in how digital outdoor advertising is sold is important for certain categories and is another issue that vendors and the OMA are working on. APN Outdoor chief executive James Warburton told AdNews it is important to focus on standardisation in measurement methodology and certain categories of assets, such as roadside billboard, rather than imposing an industry–wide approach to outdoor media. “It’s a matter of finding commonality in terms of the way you actually measure it. I think there’s a few complicated areas,” Warburton said. “So, what is the digital effect versus a classic billboard? What does that actually add in overall impact and awareness? There’s rotations — how did the rotations work by different locations? “You get a very different rotation model on a freeway where you’ve got a lot of billboards [and] you’ve got a very different rotation at airports or at train or bus stations, whatever it may be. You’ve got to have a common set of methodology across all of that.” A media buyer’s perspective Posterscope Australia strategy and insights director Cassandra Thomas–Smith shares her view: to bring better insight to their clients with the ability to connect appearance results to business results. How do you measure success on digital out of home (DOOH), do you rely on media owner reporting or do you also have other sources? What improvements would you like to see on measurement and why? Clients’ ultimate measure of success is business results, however, accountability and assurance of delivery are increasingly important. As OOH investment increases, proof of delivery for both static and digital is critical, and so is the ability to aggregate massive volumes of data. Media owners have historically provided varying degrees of reporting on their own activity. However, as the volume of DOOH grows, the importance of aggregation and independent verification required increases. Companies, such as Seedooh, are making progress in the field of OOH accountability. They are independent, the verification process is audited, and they have the ability to provide aggregated reports at scale across multiple media owners. With this platform, agencies will be able It is increasingly important for advertisers to understand the difference in contacts (impressions) for different DOOH share of time on a screen, and how share levels between environments impacts their campaigns. The same “share of screen” would have vastly different “share of the available audience” for a train platform where audiences are dwelling for five minutes, compared to driving along an expressway. New trading models need to be developed to accommodate different ways of planning and buying in DOOH to improve audience targeting. It is likely that premiums will accompany these tactics, but this type of buying will not be considered (en masse) if the delivery cannot be independently verified. Ultimately, when this measurement becomes available, there will be a shift from ‘buy by panel’ to ‘buy by audience’ and it will have an impact on how packages are sold. Do some media owners do a better job of measurement than others? Most of the major OOH media owners have robust data plays they are putting in place. They range from sophisticated targeting according to category buyers to geographic targeting by micro–location profiling to site–level targeting by audience viewing at that time. The complication is that these are all separate pieces of data available and this limits the ability to target the same type of way across a whole campaign. Posterscope believes location– based marketing is a massive opportunity for growth. OOH is one of only a few media that can truly reach consumers in a specific location, at the right time, with a highly relevant message — personalisation at scale. What about the transparency of the figures; how would you describe this and why? The industry needs complete transparency on digital measure- ment and proof of delivery if it is to move forward and continue to compete with and integrate with other media channels. Clients’ budgets are under pressure and we need to be able to measure OOH just as rigorously and transparently as other channels, and more importantly prove the effectiveness. What sort of approach should the industry take to fix this? The ideal lead should come from the OOH industry body, OMA, which does indeed have DOOH measurement high on its radar. It is not an easy challenge. Globally, the issue of DOOH measurement has not been adequately resolved for all the different needs across DOOH environments, formats and share of screen variations. There does need to be industry standardisation. Without a unified approach, media owners will be ‘checking their own homework’ and this will not create confidence with agencies or clients, which in turn will put the industry’s growth trajectory at risk. INTRODUCING www.ayudasystems.com Agenda Warburton believes the goal and objective is to give them much deeper, transactional data and segmentation laid against all of the sites, “so it gives them a much more complex data set versus just saying, ‘here are the MOVE numbers or here’s the reach and frequency’”. Zavecz agreed that getting the industry to work on a harmonised approach would not work because vendors that specialise in large format assets have different measurement requirements to smaller format vendors. “All the vendors are building the tools that complement their asset base. It’s how we all bring that together as an industry,” Zavecz said. Another important development for the outdoor industry is “The reason why Australia is a little behind other big Western nations who have had a digital network up for quite a while is because we’ve had to deal with government regulation.” OMA and MOVE CEO Charmaine Moldrich solid progress towards embracing independent proof of placement. This provides a level of transparency and comfort to advertisers and media agencies that the share of display they booked has been fulfilled. Most of the major outdoor vendors have committed to using campaign delivery reporting platform Seedooh. It’s an independent OOH ad tech platform that aggregates classic and digital screen data with campaign booking information to allow advertisers and media buyers to monitor campaign delivery, providing confidence on the buying side. “In a digital sense, Seedooh reports what message appeared on what digital sign, when and where,” founder and CEO of Seedooh Tom Richter said. The platform gathers data directly at the source from the different vendors rather than being provided data through spreadsheets, which is an important layer of independence. The service launched with Ooh!Media last July and has gained the support of the majority of the sector. In March, it formed a partnership with Integral Ad Science to provide enhanced campaign delivery validation on digital signs. Independent campaign delivery validation is the first step in what promises to be a groundbreaking year for the outdoor industry as it takes steps to bring its audience measurement capability in line with a rapidly growing digital media footprint. CYCLISTS CAME OUT ON TOP AS THE MOST FINANCIALLY SAVVY THINKERS* (47:[\K`6J[ To engage with these savvy thinkers contact: SARAH DAWES T. 02 9213 8254 M. 0405 442 745 ZHYHOKH^LZ'`HɈHJVTH\ The Media Group for Australian Cyclists Networks by design delivering engaged audiences Shop Active Find out more valmorganoutdoor.com On-the-go Investigation Make your own truth In this special report, AdNews investigates how marketers use social media, whether it is effective, and how success is measured. W O R D S L I N D S A Y & A R V I N D B Y B E N N E T T H I C K M A N Investigation little over four years ago, you or somebody you know probably watched ‘Kony 2012,’ the YouTube video about Ugandan rebel leader of the Lord’s Resistance Army, Joseph Kony. The video suggested Africa’s longest–running conflict was still raging in the country’s north. It went viral and was viewed by more than 32 million people in four days. However, Kony and the child soldiers he kidnapped had actually f led northern Uganda six years earlier. Kony dumbed down a complex international political issue for the sake of generating widespread awareness and the clip was riddled with misinformation and factual inaccuracies, yet was shared millions of times around the world. The clip was dubbed highly irresponsible and totally misleading by the Ugandan Government and gave a first glimpse into the opaque world of social media. Looking back, this was one of the first truly viral sensations with elements of ‘fake news’ and marked the start of an era where fact checking trailed behind a hunger for likes, comments and shares. Today, the state of social media is a lot more complex than it was in 2012. There are more platforms that are even more sophisticated, including relatively new popular platforms like the youth–skewed Snapchat. Another major shift is the amount of marketing dollars being invested into social media. This year, investment in social media advertising is predicted to grow by 18.1% due to the rise of news feeds, diversification of social platforms, and increased mobile usage, according to research by Magna Global. A 2017 Sensis study found 26% of small businesses, 35% of medium–sized businesses and 42% of large businesses paid for advertising on social media. For SMBs this represents growth of six points for smaller firms and 8% for medium–sized entities. But, chasing audiences on social media platforms has become wrought with risk for some advertisers in the past year. A Ads have unwittingly run next to undesirable content on YouTube, funded social media stars that have hit the headlines for the wrong reasons, and the measurement of success has faced serious scrutiny after several misreporting scandals. More recently, the data security of social media platforms has faced parliamentary pressure in the wake of the Cambridge Analytica affair. Given the huge amount being invested in social media, AdNews wanted to find out how marketers are using social media platforms and measuring its effectiveness. In a social media survey of 50 marketers, we found that around 26% of media budgets are being spent on social media platforms, with nearly all marketers (98%) using Facebook, 56% on Instagram and 46% on YouTube. The platform where survey respondents spend the most is Facebook (cited by 74%), followed by YouTube (12%), Instagram (6%) and LinkedIn (6%). Marketers said they use social media to raise brand awareness (cited by 78% of respondents), for engagement (58%), to drive traffic to a website or call to action (52%), and drive sales conversions (42%). This was followed by improving reach and frequency, and targeting (both on 40%). Marketers also perceived brand awareness, engagement, driving traffic, increasing reach and targeting as the five strongest suits for social. Interestingly, lead generation, driving sales, and store visits www.adnews.com.au | May 2018 “At a macro level we need to look at the bigger picture and the role social media plays.” Matt Soulsby Columbus were not viewed as strong points for social. Although audience targeting was regarded as ‘what social media does best’ by 12% of marketers, it was cited as a major benefit of social by 70% of respondents, followed by reach and frequency (48%), and low cost (50%). This indicated that although marketers appreciated the targeting social provides, they perceive social performs better in raising brand awareness, engagement and driving traffic. Matt Soulsby, the national social strategy director of Dentsu’s performance marketing agency Columbus, told AdNews social media is a particularly effective tool to help brands “learn, listen and adapt” their understanding of current and prospective consumers. 29 “This element of social is very under–utilised and removes a heavy reliance on assumptive planning and can allow strategists to reduce the level of extrapolating sample data to represent their desired population,” Soulsby said. “When we start to look at social, we can remove the conscious level of response that comes from surveys and start looking at a subconscious level through the actions you are taking. “Where social has been criticised in the past for what a view might look like, media agencies are positioning effectiveness through people’s actual intent and their want and willingness to interact with content for a particular reason.” Soulsby also cited the versatility of social media to perform several roles across the marketing funnel or a full–funnel solution. In terms of monitoring success, our survey found nearly two–thirds of marketers use social media dashboards, while nearly 28% consult a media agency partner or third–party and 24% rely on digital marketing colleagues. The most common metrics that marketers use to measure effectiveness are cost of impressions (CPMs) for 60%, cost of click–throughs (54%), impact on sales (50%), and cost of conversions/acquisitions (40%). This was followed by the number of shares/retweets of a post (34%), number of likes to a post/page (30%), cost of completed video views (26%), and cost of leads (24%). Further down the list was how social media influenced a brand’s market share (20%), followed in last position by an inf luencer’s fan base as a measure of reach, which was monitored by nearly two out of 10 marketers. “If a business objective is to achieve growth nationally for its organisation, we’re not going to be immediately jumping into social media and aligning that to ‘likes’ or ‘follows’ or ‘comments’ or ‘shares’,” Soulsby said. “Those would be a micro–outcome, but at a macro level we need to look at the bigger picture and the role social media plays, coupled with other digital and traditional media platforms.” When asked what marketers like about social media, many responded it was “cost effective”, “easy to use”, “targets the right audience” and allows brands to “engage with consumers”. Interestingly, when AdNews asked marketers if they found social media CPMs more cost–effective than other channels, 54% said “yes” and 46% said “no”. The aspects of social media that marketers are less content with included a “lack of transparency and accountability”, “terrible viewability”, “brand safety concerns”, “reporting issues” and a “low ROI”. The full survey we conducted can be found on our website. Investigation AdNews approached the major social media platforms to find out more about how brands are using the platforms and where they can add value. With so many different ways for marketers to measure success, we’ve attempted to demystify each platform and see how they compare when it comes to measurement and independent verification. “Small companies can now do what only big brands were once capable of doing — video, animation, and multiple formats are now opportunities for all brands.” Facebook and Instagram Facebook has undergone several challenges in the past 18 months from trying to combat fake news, to a slate of metrics misreporting mistakes it has amended. More recently, the social media platform has faced pressure to tighten its data security policies to prevent app developers from obtaining too much user data after it was revealed that an app developer working for Cambridge Analytica harvested 87 million user profiles to help serve advertising in the 2016 US presidential elections. On an advertising front, the metrics misreporting revelations, as well as allegations Facebook had been exaggerating its reach by millions when compared to census data — first revealed by AdNews — have done little to dim the appeal of the platform to marketers. Will Easton, Facebook Who marks the homework? Facebook provides marketers and agencies with several of its own tools to measure the effectiveness of campaigns on its platforms. It has previously faced criticism, alongside Google, for operating in a walled garden where it essentially marked its own homework rather than allowing an independent verification to measure results at source. Although it is still the case that Facebook reports its own figures, it allows its data to be scrutinised by third–party verification firms such as Moat, Integral Ad Science, ComScore and DoubleVerify, and is working with the Media Ratings Council (MRC) to become accredited. Last month, Facebook and Instagram revealed first–party served Which social media platforms do you use for marketing (select all that apply)? Facebook YouTube Instagram Snapchat Twitter LinkedIn Other 20 40 Part of the reason why Facebook remains popular is that it provides businesses of all sizes with a cost–efficient platform to reach targeted audiences, according to Facebook Australia and New Zealand managing director William Easton. “By using our platforms, small– to medium–sized businesses are able to use the same tools as some of the biggest brands in world,” he said. “Small companies can now do what only big brands were once capable of doing — video, animation, and multiple formats are now opportunities for all brands.” Part of Facebook and Instagram’s appeal, Easton added, is that results are “anchored” to business outcomes. “Of course, not all of those sales happen immediately, some people think about the purchase decision for many months, but that is why our teams build for outcome–based marketing,” he revealed. “We believe that campaigns should optimise for a real result, like a sale or in–store visit. There are always things that lead up to this, such as awareness or consideration, but we advise our partners to anchor these to the end outcome.” Looking ahead, Facebook said it will focus on innovations around new ad units in Stories, e–commerce capabilities on Instagram Shoppable, 360–degree video and new sharable formats such as 3D posts. “We have also recently announced new products such as Watch and Marketplace,” Easton added. “We’re focused on enabling outcome–based marketing to help businesses large and small achieve their business outcomes across brand, content and direct response marketing themes.” 60 80 100 31 www.adnews.com.au | May 2018 What they say: Facebook & Instagram LOCAL WORKFORCE SIZE: WE DON’T SHARE THIS BY COUNTRY ANZ OFFICE LOCATIONS: SYDNEY, MELBOURNE, AUCKLAND NUMBER OF USERS IN AUSTRALIA: FACEBOOK: 15 MILLION MONTHLY, INSTAGRAM: NINE MILLION MONTHLY USER GROWTH IN PAST FIVE YEARS: WE DON’T HAVE THIS INFO ADVERTISING PRODUCTS: GENERAL AD FORMATS INCLUDE: IMAGE; VIDEO (5–15 SECONDS; 1:1, 16:9 AND VERTICAL FORMATS); CAROUSEL; SLIDESHOW; COLLECTION; CANVAS. SPECIFIC AD FORMATS INCLUDE: LEAD ADS; DYNAMIC ADS; LINK ADS. impressions had been accredited by the MRC, which sets US standards on audience measurement that are adopted around the world. This is an important first step towards greater scrutiny, but still short of allowing independent verification firms to measure Facebook and Instagram data at source through third–party software development kit (SDK) packages. Facebook also allows partners with measurement firms to provide additional measures beyond its own reporting tool. This includes measuring audience with Nielsen Digital Ad Ratings, brand with Kantar Millward Brown and Nielsen brand lift measurement studies. In terms of sales lift, Facebook said it works with Datalicious and Neustar MarketShare to determine multi–touch attribution modelling, and Accenture, Analytics Partners, Annalect, Datalicious, Ebiquity, GfK and Nielsen for market mix modelling. Its mobile measurement partners include Adjust, AppFlyer, Kochava, Localytics and Singular. How do you measure success and the ROI of campaigns on social media? Cost of impressions/reach (CPMs) Cost of click-throughs (CPC or CTR) Cost of potential leads (CPL) Cost of conversions or acquisitions (CPA) Cost of completed video views Impact on sales Changes in my brand's market share Number of likes Number of shares/retweets Number of comments Size of an inluencer's following Other 10 20 30 40 50 60 Investigation What they say: YouTube “Where social has been criticised in the past for what a view might look like, media agencies are positioning effectiveness through people’s actual intent and their want and willingness to interact with content for a particular reason.” LOCAL WORKFORCE SIZE: GOOGLE AUSTRALIA EMPLOYS 1300 ANZ OFFICE LOCATIONS: SYDNEY, MELBOURNE AND AUCKLAND NUMBER OF USERS IN AUSTRALIA: ACCORDING TO NIELSEN, YOUTUBE HAS MORE THAN 15 MILLION ACTIVE MONTHLY USERS AGED 18+ (79.4% REACH). CONSUMERS SPEND AN AVERAGE OF 20 HOURS PER MONTH, WHICH RISES TO 26 HOURS FOR 18–39 YEAR OLDS. Matt Soulsby, Columbus USER GROWTH IN PAST FIVE YEARS: YOUTUBE WATCH TIME IN AUSTRALIA GREW MORE THAN 35% YEAR–ON– YEAR IN THE 12 MONTHS FROM H1 2016 TO H1 2017. ADVERTISING PRODUCTS: TRUEVIEW: SKIPPABLE ADS; BUMPERS: 6–SECOND NON– SKIPPABLE ADS; GOOGLE PREFERRED: PREMIUM INVENTORY ON TOP 5% OF YOUTUBE CHANNELS ORGANISED BY CATEGORY. YouTube Which platform do you spend the most budget on? Facebook YouTube Instagram Snapchat Twitter LinkedIn Other 10 20 30 40 50 60 70 80 Few media platforms have had a more challenging year than YouTube. The user–generated video sharing platform has been in the news for a series of brand safety issues, leading to a brand boycott in February 2017. Major organisations such as Telstra, Tourism Australia, Holden, Bunnings, Nestlé, Pepsi, McDonald’s, Foxtel and the Australian Government, hit the pause button on YouTube advertising after it was revealed their ads were unwittingly placed alongside videos made by terrorist sympathisers, white supremacists and other inappropriate content. Then there was the Logan Paul scandal, PewDiePie and also sexualised videos of minors that plagued the platform. YouTube has been quick to respond to the concerns of advertisers and significantly beefed up brand safety controls and monitoring of content on the platform. This included setting much tougher benchmarks for videos that are able to be monetised, investing in AI technology and removing up to 150,000 ads from two million videos. Google director of brand, creative and media agencies, Kevin Ackhurst, told AdNews that most of the advertisers that took a hiatus from YouTube a year ago have come back on board. “We feel that the platform is in a much better place now than a year ago and that our relationship with advertisers is much stronger and better than it was,” Ackhurst said. “While we would have loved to be much faster in terms of the stuff that we are doing, I feel we’ve gone a long way forward in being able to commit to third–party verification, integration with third parties and the investment that’s associated with the hiring of people to review the videos.” Ackhurst pointed out it has taken YouTube a lot of work to better understand the concerns of advertisers and adjust policies and product development accordingly. One challenge is trying to find the right balance between being a freedom of expression platform and having the right checks and balances in place to ensure YouTube remains a brand safe environment. “What might be very acceptable to one brand is highly unacceptable to another brand, so trying to find that right balance in terms of platform is a really challenging thing to do,” he said. 33 www.adnews.com.au | May 2018 In the past two years, YouTube has been increasingly used as a search platform and Ackhurst believes this provides an e–commerce opportunity for products and ad units that support it. “It’s not necessarily online purchases. One of the things we think about is driving people between that online engagement and offline engagement where they might go into a store,” he explained. “So our product has evolved considerably into thinking about the linkage between what they might be looking at on YouTube, store visits, and the connections between those. It’s an evolving area for us and one to watch over the course of this year.” Ackhurst said the best results are when YouTube is integrated into a holistic marketing mix and marketers are aware of how the platform can drive different marketing outcomes like awareness, consideration, purchase intent and so on, rather than just focusing on a traditional video campaign. After riding out a rocky 2017, it probably won’t be the only area advertisers are monitoring. Who marks the homework? “So what we’ve tried to do is put in place the tools and mechanisms that allow the advertisers with their agencies to achieve an outcome that is beneficial to them.” Even through the ups and dow ns, YouT ube rema i ned incredibly popular with brands using the platform to publish videos or run advertising to segmented audiences. How advertisers use YouTube YouTube claims it reaches more than 15 million monthly users in Australia, including 90% of 18 to 39– year–olds. Advertisers of all sizes use YouTube for different reasons and in different ways and for different marketing goals. YouTube said this includes driving ad recall, brand awareness, consideration, favourability, purchase intent and brand interest. Ackhurst revealed a recent interesting trend in how brands are starting to realise the benefits of bespoke creative for the platform rather than shortening TVCs. Google said YouTube’s new six– second bumper ads are providing value despite several industry experts questioning whether such short ads could prove effective. YouTube provides advertisers, agencies and third–party verification firms with results. It also allows preferred third–party vendors (Moat, Integral Ad Science and DoubleVerify) and is MRC accredited for third– party viewability reporting. Google offers marketers use of its own ActiveView measurement tool. Each of the integrations with third–party vendors undergoes an independent MRC audit, which validates the data Google says it is providing is legitimate. The audit validates data collection, aggregation and reporting for served video impressions, viewable impressions, related viewability statistics, and general invalid traffic (GIVT) across desktop and mobile for each integration. “Agencies and brands have an interest in a particular third–party measurement scheme or mechanism,” Ackhurst said. “What we are trying to do is create a little bit of an alignment so they can actually measure using that third party rather than just rely on the measurements we provide them, regardless of which platform they use. “What I don’t know is if this is going to get more complex with more measurement approaches in the future, but we are committed to third– party measurement integration.” What campaign objectives do you use social media for? Raise brand awareness Improve reach and frequency Target speciic consumers Drive traic to a website/call to action Engagement Lead generation Drive sales or conversions Drive store visits Video views App installs Other 10 20 30 40 50 60 70 80 Investigation Twitter Unlike Facebook and YouTube, Twitter has managed to avoid ruffling the feathers of media owners with constant news feed changes and revenue–sharing models that don’t deliver. Instead, it is focused on creating premium partnerships with publishers and TV networks, which has fuelled an advertising model that has attracted long– term deals with brands chasing a higher socioeconomic audience like Optus, Samsung, ANZ and Amazon. Its sweet spot lies in sponsorship and events, which is evident in its growing relationship with Network Seven that has given Twitter reams of Australian Open content and last year attracted 11 advertisers. Ironically, Twitter is probably the social media platform that is most like a TV network, with news being a core focus and its advertising running in similar formats alongside video content. With Twitter’s Australian audience sitting at approximately 6.5 million monthly active users, it is smaller than the big two (Facebook and YouTube), but Twitter sales director Angus Keene said this has given it an advantage. Twitter attracts advertisers looking to connect with an influential audience that he claims aren’t easily accessible on other platforms, aside from LinkedIn. Keene said Twitter users tend to be more educated and its ad units are considered more premium. While there are benefits to a small user base — it’s easier to monitor and control dissemination of fake news — it also means that marketers chasing eyeballs haven’t always turned to Twitter. Keene told AdNews he believes the tide is turning and marketers are beginning to realise the full potential of Twitter to deliver real– time news and reveal the full side of a story, from news organisation coverage to users on the scene. “Advertisers have changed how they are using Twitter and that’s because we better defined our platform for consumers,” Keene said. “We’ve made our platform about what’s happening in the world and that has moved What they say: Twitter LOCAL WORKFORCE SIZE: WE DON’T SHARE THIS BY COUNTRY ANZ OFFICE LOCATIONS: SYDNEY, MELBOURNE NUMBER OF USERS IN AUSTRALIA: ACCORDING TO NIELSEN, THERE ARE 6.45 MILLION MONTHLY USERS (47% FEMALE, 53% MALE). USER GROWTH IN PAST FIVE YEARS: WE DON’T SHARE THIS BY COUNTRY, BUT GLOBALLY TWITTER HAS GROWN ITS USERS BY 62% FROM 204 MILLION TO 330 MILLION. ADVERTISING PRODUCTS: FIRST VIEW, TWITTER NATIVE VIDEO ADS, TWITTER VIDEO WEBSITE CARD; IN–STREAM VIDEO ADS, IN–STREAM VIDEO SPONSORSHIPS, LIVE; SPONSORED MOMENTS. What they say: Snapchat LOCAL WORKFORCE SIZE: 40 STAFF ANZ OFFICE LOCATIONS: SYDNEY NUMBER OF USERS IN AUSTRALIA: 4.5 MILLION DAILY USERS; OVER A ‘MULTI–WEEK’ AD CAMPAIGN THE REACH IS 6 MILLION. USER GROWTH IN PAST FIVE YEARS: WE DON’T SHARE THIS BY COUNTRY, BUT GLOBALLY SNAPCHAT ADDED 8.9 MILLION DAILY ACTIVE USERS IN THE Q4 OF 2017. ADVERTISING PRODUCTS: VIDEO: SNAP ADS (SHORT– FORM) AND STORY ADS (LONG–FORM); AR LENSES AND FILTERS; APP INSTALL; LONG–FORM VIDEO VIEWS. advertisers from not having a full understanding of how to use the platform, to leveraging Twitter in a number of ways, from launching products to aligning with events.” Keene’s prediction of the tables turning for Twitter is so far on the money. In February this year, almost 12 years after it launched, Twitter finally became profitable for the first time. Who marks the homework? Twitter partners with major measurement partners I AS and Moat for video viewability and attention metrics. It partners with Nielsen DAR for audience verification, DoubleClick Campaign Manager and Innovid for ad serving, and Nielsen for brand lift studies. Nielsen also provides independent audience verification metrics for Twitter’s mobile app. Twitter has agreed to an MRC audit, which is due to conclude in the first half of this year. The audit includes gross and net tweet impression counts (including earned impressions), as well as Twitter’s measurements of viewable video impressions, tweet sessions and video sessions, as well as related duration metrics. Snapchat It’s no secret that Snapchat has had a rough time. In 2016, it was heralded as the next social media darling, the next battleground for the lucrative millennial dollar — and big brands f locked to its ephemeral format. Its momentum first took a hit when Instagram announced it was launching its own Stories feature. This marked the beginning of a series of unfortunate events, including a failed venture into wearables, an IPO that Fortune called a “huge flop”, and most recently, the introduction of a confusing redesign that led to celebrities like Kylie Jenner and Chrissy Teigen declaring the platform “dead”. It has also come under fire for brand safety issues, with a game promoting domestic violence featured on the platform. So, is Snapchat dead? Should marketers move on and drop it from their social strategies? The platform may have copped some negative attention of late, but its metrics show it is growing. Every day, Snapchat said more than 4.5 million people in Australia access the platform, and it’s an audience that analytics company App Annie found isn’t on other platforms. It identified 31% of Snapchat users aren’t on Instagram and 69% can’t be reached on YouTube. In its first Australian case study, Snapchat drove a 6% lift in purchase intent for Maxibon, a 9% lift in brand awareness, and reached two million Australians. 35 www.adnews.com.au | May 2018 Snapchat Spectacles LinkedIn Snapchat boasts reach as one of its core campaign objectives, alongside installs and time spent. Snapchat has been working hard on building out its ad offering over the last 12 months, moving into self–serve, carving out augmented reality ad units, breaking into gaming ad integration, and adding pixels to allow advertisers to better track their campaigns, among a slate of other updates. Snapchat GM Kathryn Carter said by taking on board agency and ad partner feedback, the platform has developed its solutions to service the full marketing funnel. “We now can say Snapchat is an excellent place, not only for pure reach and awareness, but also to use new targeting to drive app installs, and track e–commerce sales with the new Snap Pixel,” she said. Carter revealed that advertisers like Suncorp Australia, Woolworths, David Jones, Holden and Telstra, are seeing the value of the platform and moving towards an always–on approach to Snapchat. And the platform is still at the beginning of its journey. It’s only six years–old and while it’s still operating at a loss (Twitter took 12 years to become profitable), it still has a few years and more tricks up its sleeve. On the controversial redesign, Carter added “it’s not over”, hinting that the platform is taking on board user feedback. Who marks the homework? Snapchat works with major measurement partners across viewability (Moat, Innovid, Sizmek), mobile measurement (Appsf lyer, Tune, Kochava) and reach/resonance (Nielsen, Millward Brown). It opened its ads API to 26 partners and in February 2018 opened its marketing API to allow agencies and advertisers to create tools that both pull reporting and allow them to create campaigns. But, Snapchat has not agreed to an MRC audit. What they say: LinkedIn LOCAL WORKFORCE SIZE: 280 STAFF ANZ OFFICE LOCATIONS: SYDNEY AND MELBOURNE NUMBER OF USERS IN AUSTRALIA: MORE THAN NINE MILLION MEMBERS USER GROWTH IN PAST FIVE YEARS: HAS GROWN FROM 4 MILLION IN 2013 TO 9 MILLION IN 2018. ADVERTISING PRODUCTS: SPONSORED CONTENT (NATIVE ADS ACROSS DESKTOP AND MOBILE); SPONSORED INMAIL (ADS SERVED IN LINKEDIN MESSENGER); TEXT ADS; DYNAMIC ADS; PROGRAMMATIC DISPLAY ADS. LinkedIn has avoided the brand safety issues, data breaches and fake news fiascos of the other social media platforms, largely as its platform is designed for professional content, rather than user–generated content of cats. Its sweet spot is sponsored content that it revealed has lured advertisers like NAB, St George Bank and Telstra, which aim to get in front of the nine million Australians using the platform, of which a significant amount are high earners. LinkedIn director of marketing, Prue Cox, said the pivot to content came from the influencer program the platform introduced, which encouraged top execs to produce their own content. This in turn has led to greater investment in content marketing and thought leadership from brands that wish to have their content run alongside articles from CEOs and CMOs. “We are starting to see B2B marketers embrace video and understand the thought leadership and brand awareness it can drive,” Cox said. “We are seeing the trend of funnelling the majority of spend into lead generation and understanding they need a 60/40 split in the upper funnel and brand awareness to lead conversions.” Who marks the homework? LinkedIn would not respond to our questions about measurement and third–party verification. Meet the Team Glue: A cohesive bunch THE GLUE SOCIETY STICKING TO THE UNKNOWN A lot has changed in the 20 years The Glue Society has been operating in Australia, but it’s fair to say the agency has not lost its individuality along the way. It still remains on a path that is unchartered, working on some of Australia’s biggest brands and moving into the unknown territory of experiential. W O R D S L I N D S A Y B Y B E N N E T T he Glue Society opened its Sydney office in early 1998 with a space that co–founder Jonathan Kneebone said was just “three desks, a laptop and a couch”. Now, the agency is on the brink of celebrating its 20th birthday, graduating from its teenage years having worked on some of Australia’s biggest brands, from NAB to Virgin Mobile. Not to mention a spate of awards from across its two decades of operations. From its humble beginnings, The Glue Society had the desire to do things differently and defy conventions. Frustrated by the limitations of working at a traditional agency, Kneebone, David Johnson and Gary Freedman, decided to set up their own shop, which would work on a project basis with whoever they liked, however they liked – a simple concept that is still unique in adland today. T www.adnews.com.au | May 2018 Two decades later, The Glue Society still describes itself as a “creative collective” rather than a traditional agency, and has collaborated with agencies to execute and direct some of the world’s most awarded and unconventional projects. This includes NAB ‘Break Up’ with Clemenger BBDO, ‘ANZ GAYTMs’ with TBWA Melbourne, ‘NRMA Car Creation’ with TBWA Sydney, and Cochlear’s ‘Hearing Test In Disguise’ with CHE Proximity. Many of The Glue Society’s most memorable projects were produced with Host, which was established in the same era. It was through Host that The Glue Society landed one of its most successful campaigns ‘Warren’ for Virgin Mobile in 2003, which earned the agency a Grand Prix at Cannes Lions. The ad had a number at the end of it which unexpectedly, received more than one million calls. It’s this feedback that seems to motivate The Glue Society the most. “‘Warren’ opened our eyes to the fact that if you have an interesting idea, it can start a conversation,” Kneebone said. “That’s the opportunity that advertising has always had, even before technology — to share ideas that people can contribute to.” The Glue Society’s model also allows the agency to still pursue its passion projects and balance commercial work with creative initiatives. Kneebone said the work he is most proud of actually falls outside the advertising remit — a sketch comedy–horror show called Watch with Mother. Kneebone believes that often working on projects outside of adland allows the agency to spend more time with a project, with the pace of advertising not always allowing the opportunity to make real change. “There’s a lot less time to do anything these days, and more urgency. Your opportunity to contribute, and have those deeper conversations is much narrower,” he revealed. “It’s a shame for those entering the business now because they’re not getting a chance to really make a name for themselves.” Kneebone said he’d like to see more egos emerge in the next wave of agencies, and networks stop stamping out the individual names behind campaigns. It’s one of the reasons The Glue L U K E N A T O • C R E A T I V E “Events give you a very potent way of connecting with your real fans ... It’s an exciting space and somewhere we want to play.” Co–founder Jonathan Kneebone 37 Society has chosen not to lose its independent status, and Kneebone added he has no ambitions to sell at the moment. Breaking new ground and choosing to remain independent rather than conform to a network’s rules was always part of its DNA. Kneebone said the business made a decision early on to not chase profit, but chase interesting projects instead. However, that doesn’t mean the agency is complacent. Last year, The Glue Society opened in New Zealand and through its partnership with production agency Will O’Rourke, it’s doing more work in the US and UK. It also wants to expand more into the burgeoning area of experiential advertising, with Kneebone revealing his goal has always been to produce a segment of the Olympics Opening Ceremony. “I think in five years’ time we will be doing more complicated brand experiences,” he said. “Events give you a very potent way of connecting with your real fans in the immediate space, but then you’ve also got the legacy of the event, where everyone watches it. It’s an exciting space and somewhere we want to play.” P A R T N E R What’s your previous experience in the industry? After a few years working in the early days of digital, I was keen to break into creating more layered experiences for people. I was lucky enough to be invited to join The Glue Society in 2006. I spent a number of years on creative and direction projects at Glue before setting of on some global adventures, agency freelance, and writing a bunch of feature screenplays. A few years later, I was welcomed back to The Glue Society in 2016. And the timing was right. What was it like switching up agency life for client side at IAG? Looking back, I think it was more a career anomaly rather that a deliberate step in that direction. That said, it was illuminating to see how things work from the other side. Decisions are made very diferently in a massive corporation of 15,000–plus people. It made me realise how lucky a position we find ourselves in at The Glue Society, because we’re a small collective and able to really work together to find the right creative solution for a problem. What does your day–to–day role look like? For most of what I do, there’s both an interactive experiential element, and a film direction to represent that experience. Being able to think through the two concurrently is very helpful in bringing a creative vision to life, whether the idea is our own, or that of a partnering agency. There’s lots of thinking, collaboration with our wider team, and paper sketches before we move into 3D renders and actual production. In the end, it’s about creating an emotional experience for the audience. Something they will remember. What’s the most exciting change you see coming for the advertising industry? The blurring between reality and a digital reimagining of an experience. More than anything, I see a massive opportunity to subvert these technologies into something unexpected. Meet the Team P E T E R B A K E R • P A R T N E R How have you seen The Glue Society evolve over the last 13 years? Despite the fact that several of us have been here for over a decade, part of the reason we stay is because The Glue Society is always changing. I joined straight out of AWARD School in 2004 as an art director and was immediately confronted by the quality of the work. Back then we were working on the creative for campaigns such as Elle Macpherson Intimates and Virgin Mobile. There was a real energy about the place, the people and work that I hadn’t experienced before and has never gone away. And, over the years we’ve been encouraged to grow as individuals, despite working as a collective. These days most of my work is as a director of both film and installations (recent work I directed includes ‘The Hearing Test in Disguise’ for Cochlear/ CHE Proximity, ‘The Unforgotten Soldiers’ for The History Channel/ DDB NZ, and the first four years of the GAYTMs and GAYNZ (as artistic director). I’ve been lucky enough at Glue to earn my stripes as a director, originally starting by directing my own work and then being asked to direct for other agencies. I’ve been encouraged and allowed to find my voice, but I also know that being part of The Glue Society comes with an expectation of a certain type of work. We always want to out–do ourselves and, to a healthy degree, each other. We’re incredibly supportive of each other, but we also always want to keep pushing ourselves too. As well as evolving what we do, we also shook things up a few years ago when we moved to our studio space in Alexandria. It’s a warehouse that’s fully kitted out with a photographic studio, edit and online suites, and an art studio and workshop, which means we’re quite self–suficient. We often invite agencies into the space to mix things up, which keeps things interesting too. Last year, we also took on three new staf who each bring something new to Glue (we have an artist, a documentary filmmaker A L E X H A R R O D • and a writer/art director). Again, it’s a way of keeping us all on our toes and injecting new life into the team, forcing ourselves to look at things from new perspectives (although I’m sure like the rest of us, these newbies will be around for some time). What has been the most exciting thing you’ve worked on and why? The past few years have been incredibly rewarding. Starting with the GAYTMs (and subsequently the GAYNZ Liberace–inspired bank branch), we’ve had a good run that eventually led to last year’s emotional ‘Hold Tight’ campaign D I R E C T O R What is the most rewarding aspect of your role? I think I get a fair bit of flow from the filmmaking process and Glue allows me to do that day–to–day. How do you see the role of production agencies evolving in the industry? It’s probably a bit early into the advertising world for me to say. I do think there’s so much to learn and explore in answering the inherent goals of the industry. Perhaps if there are some ad and production agencies that could together re–assess, with maybe a bit more first principles–style thinking, and focus on the work, this could break some of the antiquated assumptions that keep us in that perceived safe space. Maybe providing some new thing that kills of the old thing. Is that evolution? What attracted you to the agency? I started on a fellowship with Glue a bit under two years ago on a hunch I could sponge knowledge and tech from work I liked. I had an operator/ editor background and it’s ended up a bit of a gateway drug into stuf I didn’t know that I didn’t know. And I’m allowed to work with some talented, good people. film, which I also directed. That project led to ‘The Unforgotten Soldiers’ campaign for The History Channel which was a chance to combine my graphic installation skills with emotional, performance– based film. Working with great theatre actors is something I jump at and this project demanded incredible actors, as well as the best craftspeople I could find. ‘The Hearing Test in Disguise’ for Cochlear was an incredibly rewarding project to direct and one that’s quite personal as I injected a lot of my own life into the screenplay and characters. www.adnews.com.au | May 2018 L U K E C R E T H A R • What’s your previous industry experience? I started in advertising at a place called Pure Creative, initially in the print studio when Quark Express was still kicking around. From there, I was fortunate to move into the creative department, with a lengthy stint at Leo Burnett in Sydney, before moving across to Glue, where I’ve been for the past 13 years. What’s the most exciting thing about the creative industry right now? The diversity of thinking and multitude of diferent avenues available to fulfil an idea. And if there isn’t an outlet for a particular execution then these days you can just make one, and that’s pretty exciting. S E N I O R 39 W R I T E R Consumers interact with brands diferently; they want more sophisticated contact at all levels, and the brands that acknowledge that, are the ones most interesting to work on. You have to be more creative in the ways you approach people, which makes communicating with them more interesting. was a challenge to begin with, over the years the blurred nature of my role makes it more exciting and anything but repetitive, which I love. I sometimes even get to be a copywriter again. How do you explain what you do to people who aren’t in the industry? Because we work on projects in many different capacities at Glue, it’s never easy to summarise my job in a few sentences. Showing a piece of work that we’re responsible for goes some way to explaining our craft. At least I can then talk directly about the role I had in the project. Half the time they’ll still walk away with a confused look on their face though. What’s the most challenging part of your role? Working at Glue, I’ve learnt not to get too attached to one particular role. Having arrived as a copywriter, I’ve morphed along the way to allow for creative work on many levels, from concept development, production, direction, film editing, installation, and music. While it A L I C E C O G A N • A R T D I R E C T O R What made you want to get into advertising? I had a really amazing tutor at Curtin University in Perth, Allyson Crim; she encouraged me and a lot of other girls to do advertising. She has a roster of successful students who have gone on to win lots of awards and do great things. How did you land your role at The Glue Society? I landed the role at Glue through the fellowship program. I had met Jonathan a few years before at the D&AD Brief to Broadcast event that Glue hosts every year and then when I heard about the fellowship I applied straight away. I had seen a glimpse of what Glue was like from the D&AD events and knew I wanted to work here. How does Perth’s advertising market compare to Sydney’s? Perth’s advertising market was rough. When I was there, we were going through a major recession from the end of the mining boom (they still are). For me, the juice just wasn’t worth the squeeze. When there’s no money, people get nervous and stop pushing for bold ideas. It drains the fun away from what we do and it was burning me out. It’s a shame, because there’s so many talented people in Perth but so many of us end up moving to Sydney and the east coast because there are the budgets and the clients to do great work. What do you love about your job? I love my job because I’m not defined by a title. None of us at Glue have a singular role, we do it all. I could be directing on set one day, managing clients and budgets the next, and writing a script the day after. There’s no limitation on what were allowed to do. The Big Question ‘RADICAL TRANSPARENCY’ — WHAT DOES IT MEAN AND WHO SHOULD CARE? W O R D S P I P P A M I T C H W A T E R S Radical transparency is generally accepted to mean removing all barriers to free and easy public access to information. What does radical transparency look like within the digital advertising ecosystem? For a start, all parties within the supply chain would have access to transparent information around fee structures and services. There’s nothing particularly radical about that (well, there shouldn’t be). I think a lot of marketers have taken a simplistic view that by moving their buying in–house or B Y C H A M B E R S • T R A D E D E S K Transparency hit fever pitch last year, gaining prominence across the world with ANA’s report on media rebates, as well as Facebook and Google misreporting metrics. Despite the rise and subsequent drop in talkabilty, it shows no sign of leaving adland’s just lexicon yet. ust when we thought the ubiquitous ‘transparency’ word had taken a short break, having slid off a few LinkedIn posts, it seems its close relative ‘radical transparency’ has taken its place. Be it black or white, or more fittingly grey, talk of the subject and its various guises continues to evolve, but by prefacing the word with ‘radical’ — as many now do at conferences and across varying online platforms — will we take it more seriously? What does ‘radical transparency’ mean to people and should we be taking this topic more radically serious? At our AdNews Live Tackling Transparency event last year, we got 100 people in the audience to vote on three solutions to tackle adland’s transparency problems. Keep an eye on AdNews June edition for our follow-up on how far we’ve actually come as an industry on this. In the meantime, we put this new talk of ‘radical’ transparency to three ad tech execs to get their view. J G E N E R A L M A N A G E R A N Z using only one tech stack, they are cutting out the middle men and solving their transparency problems. Ironically enough, being radically transparent sometimes requires more people in the supply chain — like third–party viewability and ad fraud vendors. Having a third party as part of the supply chain ensures marketers aren’t judging campaigns solely by their tech providers’ own metrics — the ad–tech equivalent of marking your own homework. If we as an industry are going down the path of radical transparency, we need to take a long hard look at objectivity. Objectivity means the ability of your tech provider to objectively assess all media and assign your spend appropriately and without bias. The industry’s transparency issue is exacerbated because so many ad– tech companies look more like media companies. Many have business models where they represent both the buyer and the seller at the same time. This creates an internal conflict that leads to a lack of transparency. It also means these players could bias their own media. Not very radical, right? “If we as an industry are going down the path of radical transparency, we need to take a long hard look at objectivity.” www.adnews.com.au | May 2018 J U N E The transparency conversation isn’t a new one, yet it continues to evolve. The past 18 months have seen a steady influx of transparency challenges that have left major brands with big questions. At its core, transparency addresses the loss of trust between a brand and a consumer. With signiicant revenue impact hinged on reputational damage, trust becomes an emotion with a dollar sign. The industry is calling for radical transparency because the conidence of the brand in their chosen partners is critical for success, given the nature of programmatic advertising. P E T E R • G R A P E S H O T A N Z V P Radical transparency afects the entire ad tech ecosystem and each of us is responsible for creating a more transparent environment through the way we do business, including agency fees, billing models, data origins, cookie tracking, etc. A true commitment is expected from everyone — brands, agency partners, publishers and tech vendors — to think about transparency from consumers’ perspective, how their data is collected and used. It’s a good thing to see laws such as The General Data Protection Regulation (GDPR) and Privacy Act coming into play, which puts the power back into consumers’ hands and measures taken if their data is compromised. At Grapeshot, we see advertisers are getting more and more savvy in asking the right questions. With our Contextual Intelligence Platform, we are able to demonstrate our methodology, how we do things, with no black box or cookie tracking. This provides a lot of comfort to our clients and keeps us compliant. We believe in this new age of media, regardless of where you are in the supply chain, anyone who can’t adapt will be left behind. B A R R Y Ask anyone in our industry what the current hot topics are and you can be sure that one consistent answer will be “transparency”. Transparency can mean many things — what sites an ad appears on, what advertisers appear on your site, fee disclosure between tech partners and advertisers/ publishers, and so on. The ad tech industry has taken great leaps forward recently. Ads. txt (and in the future, ads.cert) empowers advertisers with the knowledge that they are buying inventory from legitimate sources. PubMatic ofers a fraud–free guarantee to buyers to further re– assure them that their dollars are ending up where they should. The removal of buy side fees has cleared up the supply chain, C H E U N G • P U B M A T I C C O U N T R Y M A N A G E R “The industry is calling for radical transparency because the confidence of the brand in their chosen partners is critical for success given the nature of programmatic advertising.” A N Z which is great news for both buyers and publishers. These developments have come about in the last 12 months, and, while there is more to do, much of the opaqueness previously associated with programmatic has now been dealt with. Some companies have put forward the concept of ‘radical transparency’ to promote mass disclosure of customer fee rates. While this may sound good, the reality is that business arrangements are too complex, and companies’ product capabilities are too varied to make it practical. Mass fee disclosure could unfortunately result in a single, isolated commercial term becoming the dominant driver of technology decisions. A viable path forward requires a mentality shift for decision–makers. The way to achieve trust is to move the industry towards a mature software procurement approach that is transparent, lowers costs for everyone, and creates healthy relationships. At PubMatic, we have recently introduced new pricing models that are no longer based on rev–shares, but on subscription models. This leads to a ixed cost base for publishers and allows for more complex transaction methods like PMP and header bidding. Trust between publishers, advertisers and vendors is achievable, but not through headline grabbing and impractical suggestions like radical transparency. To accomplish this, clear, mature pricing models are needed. “A viable path forward requires a mentality shift for decision–makers.” 41 Adland Secrets Confessions of a media network adman gone solo Under cover of anonymity, the worst of human nature is revealed along with “impossible” strategies, dire comms and duped clients in the first of a series of raconteurs to bend the ear of AdNews. www.adnews.com.au | May 2018 The best thing about leaving the big media network game is? Not having to deal with the politics or CEOs who you have limited respect for, but are experts in the politics of business. I had at least three or four of them within my network. These people pushed their own agenda rather than that of their staff, their clients and their business. What’s the best part of network agency culture that you miss? The elaborate network Christmas celebrations. Seriously, I can’t think of anything I really miss. And the worst bit? The politics. Lack of integrity. The strategy of internal hubs/ silos versus the one group ‘holistic’ approach. What works and what doesn’t? 43 What key things are overlooked in agency world? Clients generally have very limited understanding of media. They are easily influenced and because of that, are easily duped. Clients. Big networks have shareholders/stakeholders to appease and clients and staff in many cases (not all) were the ones to suffer. Who holds the power and influence within the agency/network and does anyone else matter? The companies/individuals in the networks that make the money. On a few occasions the HR person can have a strong influence with the CEO, but ultimately the CFO/COO holds many of the cards as they’re not in the firing line if it all goes wrong. However, they’re happy to be the king once the ‘king is dead’. Innovation. Is it happening? The best part of networks is the opportunity to leverage what other markets are doing globally, and using those innovations to bring back to Australia. On many occasions we would talk a great game, but would never realise it due to clients not being prepared to take a risk or release funds to make it happen. There was action though, but limited to the biggest clients who had the budget to take that leap of faith. Agencies themselves were rarely prepared to take that risk without revenue attached. What needs to change to improve agency culture? It is impossible to make the one group holistic in approaching work. Even if you have the best intentions, which our network did, it is impossible to deliver due to scale, company/individual KPIs, and ultimately politics. All agencies I‘ve worked at have done so much for their staff to improve culture, but turnover continues to remain at over 30%. I put this down to a lack of skilled staff in Australia and with new 457 laws it isn’t going to make it any easier any time soon. However, they could do more with flexibility for return-to-work mums. The agencies I worked at always had more female staff. Losing so many great people because of workloads, socialising to keep up with their male equivalents, and balancing home life makes it too difficult for mums. I’m sure equal pay also comes into this, but it’s not something I was exposed to. How good was internal communication? What are the strengths and weaknesses of the client understanding of media planning? Terrible, having worked at four of the big six, they were all the same. You would hear about very senior people leaving the agency from reading articles in AdNews or even from competitor agencies. I understand the need to keep things quiet and to control the comms for the good of the staff and the clients, but it was always leaked. I could never understand why they didn’t have a process to deal with this, and if they did why they always left it too late. Clients generally have very limited understanding of media. They are easily influenced and because of that, are easily duped. Many clients at a particular agency will now be feeling that. That said, the larger the client the better their understanding as they can afford to employ media specialists. For the rest, which is the majority, they struggle to keep up with the pace of media. However, this is why media agencies exist. Also, the importance of clients being diligent when selecting their agency ensuring they are one they can trust to do the right thing for them. Typical agency politics that got you down or got in your way? People who only thought about themselves and what they needed to do to get themselves ahead at the expense of others in their agency. Unfortunately that is the worse of human nature. I worked in large networks for over 15 years and was successful by showing integrity, being honest, driven, and building strong relationships. Do agencies take advantage of these gaps? For example, everyone talks about arbitrage in programmatic trading and media buying, etc. Yes. The need for transparency has never been greater, but network agencies aren’t at any time soon going to give up that revenue. You can look at a smaller network agency a few years ago where the leadership team was basically sacked for attempting to be transparent too quickly. Sounds ridiculous, but in any business with shareholders they aren’t going to be happy to take significant cuts in revenue unless you can find a way to replace it. What would you like to see happen to create a healthier media buying ecosystem? I would like to see clients better understand media planning and buying so they can make a more informed decision, but understand they may need to pay more for the services they receive, which could be the first step to ensuring improved transparency across the industry. NEW COURSE + SATURDAY TEAM TIME TRIALS AT THE VELODROME 175KM • 120KM • 90KM • 35KM bowralclassic.com.au 2017 BEST NEW EVENT & BEST COMMUNITY EVENT WITH THANKS TO OUR PARTNERS SUPPORTING PARTNERS Feel the Freedom and ride for the charity that you are passionate about! DESTINATION STRATEGIC SPONSORS MEDIA PARTNERS AUTOMOTIVE PARTNERS LOCAL SPONSORS THINKING. INSIGHTS. IDEAS. That’s what drives the industry, and it’s what drives AdNews. AdNews is the credible source for in-depth content that shapes and informs our industry. SPORTS & SPONSORSHIP • AKQA • BANNED ADS • RADIO • NICKIE SCRIVEN • 72ANDSUNNY REGIONAL MARKETING • EXTRA CURRICULAR CREATIVE • MEAT & LIVESTOCK • THE MONKEYS • ZENITH Thinking. Insights. Ideas. adnews com au Vibrant cities Europe’s hottest shops via London, Amsterdam and Berlin. AdNews Since 1928 October 2017 October 2017 AdNews Since 1928 Vibrant cities Europe’s hottest shops via London, Amsterdam and Berlin. Subscribe to AdNews from $6 per issue* and get exclusive content that you won’t find online. PRINT | DESKTOP | MOBILE | TABLET Subscribe and save 32% VISIT: greatmagazines.com.au/magazine/ADN Use promo code: ADV/18011 *Based on 1 year / 10 issue Digital + Print subscription. Digital subscription available via Zinio. Campaign Review VML senior art director LOUISE MCQUAT Sport advertising is typically very formulaic, with lots of tackles, cheering and hype. This year both the NRL and AFL have departed from these clichés and made work for the channels where people are viewing. These new campaigns address social responsibility with human stories while contrasting the competitive nature of the games with a sense of inclusivity and community. It’s good to see. Meerkats senior creative RIKKI BURNS 2018 marks a small shift in a category traditionally built on energy, hype, and star power wallpaper. Human stories are coming to the forefront, effort in the face of adversity is celebrated, and diversity is not just part of the story — it is the story. AFL VERSUS THE NFL: WHO SCORES WHEN IT COMES TO ADVERTISING? Both the AFL and the NRL have taken bold new creative approaches this year, appointing new agencies and shaking up their messages. Here, we asked some of the industry’s best creatives to review their ads and rule who scored the winning try when it comes to sports advertising. W O R D S L I N D S A Y BWM Dentsu ECD AMY HOLLIER What a difference a year can make. This light speed change in self–awareness from both the AFL and the NRL proves old dogs can learn new tricks, and gain new audiences. Now they’re tackling some of sport’s biggest issues head–on and proving they know what makes us tick; they’ve figured out how to motivate not just my son, but my daughter too. B Y B E N N E T T Campaign Review NRL 2017 Creative Agency Archibald Williams LM: This isn’t the most creative ad in the world, but it’s a great pump–up for the sport, showing how each team and its fans have their own rituals and cultures that make the team who they are. The graphic social commentary overlaid throughout worked to show the passion from the fans across all the teams. Purely based on building excitement for the upcoming season, I liked it. RB: The 2017 NRL spot starts with the promising introduction of a fan versus player concept, but quickly becomes a hype montage. The intended message to fans is “you’re a big part of all this”, but NRL 2018 Creative Agency R/GA LM: The film seems to speak more to true fans with a lot of assumed knowledge of the players and their teams. So some of the nuances went over my head; hopefully they were only looking to talk to existing fans. I think it’s shot well and demonstrates the tribal nature of the teams and cultures through the fans and home grounds well. Overall it had a great energy, but most of the story they were trying to tell was missed by me. that potential somehow turns into “people use social media these days”. This category generally expects mandatory spectacular action shots, equal representation of all teams, a reminder of sport’s emotional highs and lows, a nod to the importance of fans, a tie–in to the overall campaign line, an interesting human insight, a strategy that builds on the previous campaign, and a new and exciting way of expressing all of the above — so this particular type of creative glue is the logical progression. Wouldn’t it be more interesting if we could just blow all of that out of the water? On the bright side, “History doesn’t just happen, history is made” is a killer line. RB: We’re still firmly in the hype arena with the new “This is How We League” spot, though this time, a creative concept peeks through. Again we’re talking about pride, diversity, loyalty, and overcoming adversity. With an interview approach, James Tedesco’s story could have easily slipped into the AFL campaign. But, as a standalone driving spot, it’s beautifully shot, energetically edited, and cleverly hits a lot of proof points along the way. The team murals commissioned across Sydney extend the concept off–screen, blurring the lines of the film and real world in a memorable way. Racial diversity continues to be inherent, but does the casting of the driver reinforce racial stereotypes? Or is it a win for diversity? A post– diversity–casting reverse–racial anti–statement? I can’t tell anymore. It’s not as purposeful a shift as the AFL example, but a creative step forward with a tough brief. No doubt it’ll get fans hyped, and hopefully we can expect big things next year. AH: Hmm … a kind of forgettable clips package. I’m afraid I had to watch this twice because I kept drifting off and thinking about the ads I’d watched before. Not much to comment on here in terms of narrative or core idea. I’m sure it helps if you know or can remember every one of these moments and the importance they had in the season, but then you’d be a true fan, rather than using broadcast as a medium to gain a broader audience, and elevate the sport above the basics, which its 2018 compatriots do so beautifully. AH: What an intoxicating tribal chant. Energetic, engaging, with nice changes of pace and playful elements to keep you entertained. The best thing about this film is the way the NRL have made it real for fans, with powerful murals in their neighbourhoods and a sense of inclusiveness through ‘real time’ social media commentary woven throughout. The combination of the players and the younger fans makes for fascinating viewing too, as it feels like you have two different perspectives simultaneously. I’d love to see the NRL keep exploring the notion of tribes. But don’t forget there are girls in your tribe too. www.adnews.com.au | May 2018 LM: As an AFL fan, this piece didn’t do much for me, it felt like they were trying to target non–fans or people who know nothing about the sport. I think using Hemsworth distracted from the excitement of the game and upcoming season, and made it feel a bit glossy and unfulfilling. million Aussie best mates understand. Sure, in 2018 we’re a bit Hemsworthed–out, but in early 2017 this was a smart alignment with a beloved super–fan at the height of his fame. Half the work was already done. 2017 also saw the return of the classic 1994 “I’d Like to See That” line for both the AFL and the AFLW. But, what was such a clever and inspiring way to launch the AFLW (presumably without the Hemsworthy budget), ultimately became just a likeable and funny spot for the AFL. Goes to show you that a true emotional insight beats star power any day. RB: Aussies love a Hemsworth, especially when he’s making jokes that only he and his 24 AH: This is a great idea; what a shame about the lacklustre execution. It feels like an epic AFL 2017 Creative Agency Cummins&Partners AFL 2018 Creative Agency Clemenger Melbourne LM: Racism has plagued Australian sport in recent years and the AFL often finds itself in the spotlight. I think these films are a great way to demonstrate inclusivity and tackle racism and ignorance head–on. It’s nice to see the films focus on telling the story and not making something that just works for TV. ‘Don’t believe in never’ is a great way to frame the journey these people have been on, and I hope these pieces can do a lot to change minds and perceptions of Australian multiculturalism. 49 without the sense of epic. And, as is often the case, it feels far too long for what it is. You get the idea in 15 seconds, but then you have another 45 just to make sure you got the message. With this budget, I feel like they could have made an actual Hollywood–style trailer for ‘AFL The Movie’. Oh hold on, that’s what Tourism Australia just did for The Super Bowl, with Hemsworth. It was awesome. RB: ‘Don’t Believe in Never’ moves the AFL from comic patriotism to human stories of dedication, passion and perseverance. While not breaking any new ground creatively, these stories do something else. They manage to cross barriers of race, religion, self–worth, culture, and (gasp) team affiliation. Diversity is obviously on trend, but let’s be honest, the Venn diagram of footy fans and intolerant dickheads does have a cross–over. In this campaign we’re seeing a much–needed shift from hero worship to changing the expectations for who and what constitutes a hero. With budget comes responsibility. Or at least opportunity. My only criticism is for the obscure posters featuring portraits of minorities with the word “NEVER” and the logo. In our current media landscape, we can no longer rely on our audience seeing one piece of communication in order to understand another. When playing on this particular field, the connotations are potentially inflammatory. AH: Wow. Finally the AFL shows it understands why we love the game so much. And it’s not about men. Or beer. Or aggression. It’s about hope and belonging. And using sport as a common language to cross all manner of boundaries and differences. It’s good timing as well. In the wake of concerns and tensions around Nauru and Manus Island, it feels like Oz needs reminding of the powerful and numerous benefits that migrants can bring to our country, and the importance of making everyone feel welcome. Exquisitely crafted and achingly authentic, this catapults the AFL into super–brand status for me. A brand to believe in. More please. The Download ADNEWS.COM.AU Check out some of our most read stories from AdNews.com.au and make sure you are in the loop by signing up to our newsletter. 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