“ The Great Fragmentation Marketing Inside -Out ”
Mr Steve Sammartino Author, Keynote speaker Steve Sammartino spoke at CeBit 2016 Australia the largest and longest running business technology event in Asia – Pacific region 2-4 May at Sydney Olympic Park. www.cebit.com.au
Media Futures interviewed Steve about “ The Great Fragmentation Marketing Inside -Out ” and it’s applications for the marketing and media sector
Here’s a snap shot summary of what Steve Sammartino had to say –
Question: How do we deal with fragmentation.
Response: Firstly we should not fight it, it is inevitable. The tools of production are so democratised now and so affordable. Previously if you wanted to be on a screen it would cost millions of dollars now you get get an audience for as low as 20 cents on Facebook. Fragmentation is in all areas of business. Don’t put boundaries around your business. Embrace the truth of the fragmentation. The best way to handle it is to open up and allow people to create something that they really want, like making a new product with you, allowing them to create something that suits themselves.That process elevates you to their levels by making something that people really want. It’s like creating a partnership with your customers rather than selling them something.
Question: 90% don’t do work at their place of work, is this the end of the office
Response: The office is the last industrial enclave. Look at history. We forget to look at at why things exist. If we remember why something was built in the first instance then its easy to forget why its still relevant. The office was originally attached to the factory and transporting information was physical and local. Now information is not physical nor local. The tools in offices used to be very expensive. Photocopiers used to cost $ 200,000. Centralised operations were designed to maintain costs but not now work can be done anywhere. Do people still need to interact, do we need it 5 days a week, no we don’t. The reason the 9am to 5pm working day exists is that this is when the sun shone into factory windows. If we had to redesign the office it would not be 5 days a week in the same space. We can now have the best of both worlds with new technology.
Question: How long does it take in the fragmented world from making the connection to profit
Response: To connect with a small audience is quite quick. To connect with mass audiences is hard and does not happen any more. Technology companies launch in beta and do private launches first. Air BnB launched city by city there was no big launch. In a fragmented world it’s hard to connect with everyone straight away. Sometimes there is a big lag between the connection and the profit. If we aim for small audience at a time we can profit from it and make a valuable connection and monetise it. If we want a big macro audiences you need to invest for the long term, the ROI won’t occur in the next quarter. We need to invest it forward.Venture capital is doing this on long lead times with monetisation a couple of years down the road thereby allowing organisations the time to make a return. It is an infrastructure re set. The supermarket shampoo strategy of invest now sell tomorrow does not hold true. Today it is about connect now and the revenue comes from outside. It’s the related revenue realm. It requires a different mindset from CTOs and marketers. Google gives away search but makes money on the sale of advertising.They give away the product and make money outside of the product. Its time for a different mindset. Think micro first get a return on investment then expand on scale.
Question: What advice would you give for aggregation and measurement of all media and not just measure selected mediums in isolation and that exclude new entrants or related mediums
Response: The first thing is remember is that the research companies and main stream media have a vested interest in what they are measuring. If the scope of the measurement is reduced it makes them look like they are performing better than they are. You can have x% share of voice or eyeballs, but we know this is not true, this is a classic example of don’t believe everything you read. Make your own interpretations of where the value is. For anyone reading this article have a look in your lounge room tonight and see where people’s eyes are. The way I define TV today is audio visual content streamed to eyeballs equals TV. Youtube is not measured in industry surveys yet it is TV. The truth is not being measured. It is fragmented and it’s harder but we need a realistic approach of what we are paying for and who is really seeing it. In digital media it is far more trackable you can measure who is watching and the mobile phone is so personal it has a 5 to 1 advantage in my opinion over desktop and laptop. Snapchat measures actuals, Twitter is opportunities to see, banner ads are opportunities to see. I have never believed TV box top ratings, who’s in the room and who pressed the buttons. Are we still falling for that?
TV is not dead but we are investing large dollars and need to understand that TV as an example is not a one size fits all, we are not going to get everyone. It takes more to find our audience in the fragmented world.
Question : If Marketing moves horizontally how quickly do you need to move horizontally and I what steps
Response : Stop measuring market share it is based on verticals and supply chains. It makes assumptions on who we compete against and on supply chains. Banks may measure the amount of mortgages they make, however do they measure the amount of venture capital and crowd funding? Where money is moving is not in their market share calculations. As we move to a digital economy the market place is horizontal, people can hop into new industries, Apple became a player in the music industry, Air BnB owns no physical assets and is not measured in the figures of hotel chain category. It is about virtual connections and that makes it horizontal. To solve problems we need to look to the side and outside of industry verticals. We need to solve problems by connecting things and that’s horizontal. This is where different industries cut across each other because it’s possible.
Quote from Steve: “ If you want to make the effort and learn, it’s a few key strokes away on the internet. There has never been more opportunity to learn it and learn it quickly.If you want to be a one percenter, be the one percenter who pays attention to the changes.”
Media Futures undertook this interview in order to inform the media and marketing industry that the pace of change is faster than we think. Some may say I already know this fact, but have not yet acted upon it. The message to marketers and media practitioners is to be very precise in decision making and be astute to target more effectively.
If your media policy, media strategy, media planning and media buying have not addressed The Great Fragmentation it is time to investigate this current and real issue.
Q1 . Why is learning code important
It actually goes beyond coding and we say coding is not the outcome we want kids to be creative thinkers and to solve problems. We want kids to break down complex problems into simple steps and conquer big questions like why is there too much traffic in Sydney.
Q 2. How can business take advantage of Code Club
There are a couple of ways that business can get involved. Firstly by volunteering say an hour a week the other way how are going to find and maintain top talent. Other ways are to come in to Code Club or even bring your kid to work day where Code Club can show and transfer skills and give a look at what it’s like to work inside a technology company. At times businesses become mentors and that’s a great outcome for code club.
Q 3. How can business benefit by building proprietary online systems using code.
When we build proprietary code we own it outright and are able to experiment with it more. From there we learn about the outcomes that the technology is bringing about. Most Australian companies use technology that was brought over from the USA or Europe. Building proprietary technology is how we are going to solve specific Australian issues and having that skill set here is absolutely the key to innovating the country and moving away from outsourcing or replicate business ideas from overseas.
Media Futures views learning code as a component of Media Policy, Media Strategy, Media Planning , Media Buying and Media Audit. If it has not been addressed, talk with Code Club, it might unlock new opportunities for your business.