CeBit 2016 “ The Great Fragmentation Marketing Inside -Out ” 

  • By Greg Allardice
  • 11 May, 2016

CeBit 2016

“ 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.

By Greg Allardice 19 Jan, 2018
If you feel that your media is not working, that your media is starting to drag the chain or that the current policy and strategy simply do not work anymore, these are clear signs that your media is in need of a relaunch.

The media model created to do the job well can alter without you actually seeing the subtle changes that occur behind the scenes. 
Things such as rate fluctuations, seasonal media audience variations, new media undercutting your preplanned audience numbers and over spending in one category are common traits that effect your media results.

When you find out about what is truly going on it's too late. You have spent your money and it's too bad you won't get it back.

How do you relaunch your media amidst constant change and generally too much information that leads you in the wrong direction.
What are the true market conditions ?

Your relaunch should take into account your business needs, revenues, profits and growth plans. Most importantly relaunch with a measured approach where you can change course without locking in large sums that a fixed and only become money wasters. 
A media relaunch becomes an integral part of your operation, not an added expense that drifts off to one side. 
With media audiences becoming more fragmented on a daily basis, a media relaunch sometimes is essential.

If your media has reached a plateau and lacking that certain sizzle, Media Futures recommends you seek out an independent media professional. Media policy, media strategy, media planning and media buying are an art not a science.

Media Futures presents industry articles in the constant quest for improving return on media investment.






By Greg Allardice 28 Dec, 2017
Media is a cycle business. It never stays the same and has constant shifts and changes to keep the alert media policy maker, media strategy specialist, media planner and media buyer on their toes.

Why is this so?  The answer lies in the fickle nature of the illusive audience. When programmes , media formats and content changes, audiences go in search of something new. The media goes into a new cycle and essentially whilst some things remain regular such as a base audience , traffic flow or bolted on loyal users, the rest alters in a flash. 

This is evidenced in dramatic rating variations in free to air mediums and the constant scramble for share of voice in social and online platforms where attention spans are short.

How do you stay on top of the game?  Engage an independent media specialist who not only predicts the market but can assess the cycles to your advantage as a client or buyer.

This comes with experience and is not a job for juniors. It is a wealth of market experience built up at the coalface and knowing that cycles come and go regularly.

If your media policy, media strategy, media planning, media buying and media audit have not addressed Media Cycles it's time to seek out an independent media specialist.

Media Futures presents industry related articles in the constant quest for improving return on media investment.








By Greg Allardice 18 Dec, 2017
Media comes in all forms, some a perfect fit and some that does not make sense for your brand or service

Good media stacks up when the following fall into place

* The medium or mediums have a format or style that suits your product or service
* The audience is audited and you can measure usage patterns  by day parts
* The medium can supply effective frequency to drive recall and recognition
* Cost effectiveness is high 
* Value add is an option to extend impact to the target audience 

Bad media is not an option in any form . Avoid the pitfalls of investing in bad media that simply is not a fit.

Good media will make sense from the beginning, it flows naturally and the process of buying into good media time or space ticks all the boxes

If your media policy, media strategy, media planning, media buying or media audit have not addressed Good Media, Media Futures recommends you seek out an independent media specialist

Media Futures presents media articles in the constant quest for improving return on media investment
By Greg Allardice 13 Dec, 2017
The general industry perception is that media takes a holiday over summer, audiences drop away and rates crash through the floor.

However media does not take a holiday, it operates 24/7 365 days and this time of the year has always been a great environment for smart advertisers who are ready to take advantage of the market conditions.

Consider these points as to why seasonal summer media in Australia makes sense.

* Regional markets come alive with tourists and holiday makers who do watch, read and listen to local media 
* Capital cities have an influx of foreign tourists
* Sport dominates media coverage and represents good buying for targetted audiences
* Seasonal retail, food and lifestyle products are ideal for online targetting particularly via mobile phone
* Selling of seasonal specials and clearance of stocks in readiness for the new year offerings make sense
* Back to school is always an important market for parents at end of school holidays

If your media policy, media strategy, media planning , media buying and media audit have not yet addressed Seasonal Media , then Media Futures recommends you seek out an independent media specialist.

Media Futures presents industry articles in the constant quest for improving return on media investment.











By Greg Allardice 11 Dec, 2017
Media Futures has long promoted the mobile phone as a medium that cannot be ignored. Recent industry figures show that for 2018 Mobile phone digital expenditure is estimated to be 54 % of total digital spend with increases to as much as 72% by 2022.  These growth figures cannot be ignored and only serve to reinforce the "Media in your pocket" concept.
It is without a doubt the medium that makes sense on every media plan particularly in the 12 to 70 years markets.

As with all new mediums that have a hot run, everyone wants to be there. However consider these salient points-

* All growth mediums eventually plateau out in audience and time spent using

* The cost of doing business with new mediums that have rapid uptake of usage always become too expensive over time because of demand levels and greed of media owners to maximise profits

* New mediums of this type are best served with fine tuned targetting to improve ROI

* Work on short term buying patterns due to the influx of competitive low costs digital formats that only serve to erode audiences in your chosen market and with similar formats to the market leader

If your media policy, media strategy, media planning, media buying and media audit have not yet addressed
Mobile Growth, Media Futures recommends you seek out a n independent media professional.

Media Futures presents industry articles in the constant quest for improving return on media investment.











By Greg Allardice 30 Nov, 2017
The discipline of media targetting is front and centre of every media planning undertaking. The fact is there is always going to be some wastage and no matter how well you target your message there will be people who see it or hear it that have no interest in your product or service. 

What do you do to minimise this wastage through your media targetting. 

* Factor in an estimate of the amount of wastage 
* Off set that predicted wastage against the rate negotiated for a unit of time or space
* Does the medium have a response channel where you can measure who and how many responses you achieve
* Is it sales or awareness only you are looking to achieve
* What clutter surrounds your message, how prominent will you be

Media targetting is key to maximising your return on investment but keep in mind that 100% effectiveness is unlikely.
Be realistic when approaching this segment of your media undertakings .

If your media policy, media strategy, media planning, media buying and media audit have not addressed media targetting it's time to seek out an independent media professional.

Media Futures presents industry articles in the constant quest for improving return on media investment.






By Greg Allardice 26 Nov, 2017
If your media exposure patterns have become stale, boring, or just running out of ideas, then a media spectacular makes sense. This does not mean spending all your budget in one hit. The golden rules of reach , frequency and effective frequency still apply.  A media spectacular essentially means stepping into a new form of communication versus your tried and proven methods. It may involve sponsorship and key branding in a sporting code, event participation, big large outdoor formats, philanthropic giving that brings media coverage of a positive nature, seasonal festivals or creating a major media event which you design and control. Media is an open book, not just confined to units of  time and space. The purpose of this article is to open the thinking patterns to achieve a break through when media has become stale or cluttered and you are just not getting results. 

Think Media Spectacular if you are not cutting through with current media practices.

If your media policy, media strategy, media planning, media buying and media audit are not working effectively consider an independent media professional.

Media Futures presents industry articles in the constant quest for improving returns on media investment.








By Greg Allardice 19 Nov, 2017
Time was when the small screen meant TV or small media meant a small press advt. However in 2017 small media means your computer screen or mobile phone.

According to Sensis Report 2016 Laptop ownership is 70%,  Smartphone ownership 76%,  Tablet 53%,  Desktop 54 % 
Internet usage more than 5 times per day is 55 % 

In fact the numbers are much higher. Walk down the street , sit in a cafe, travel on public transport and you will see much higher percentages using the small screen.

The purpose of this blog is to put out a wake up call to all marketers and advertisers.  " Think small!!! "
Yes, think about how to capture the attention of your current and new customers on the small screen and then work backwards into TV and large screen formats such as outdoor and cinema.

Why is this so?? 

The attention span of the average consumer is about 3 seconds, if you don't grab then then , they are gone.
There is so much clutter on all media and the small screen is a smorgsabord of choice.  The need to create powerful effective " small " communications has never been greater.

This involves a turn around in thinking and both at a creative and media usage level. Using tried and proven practices of even 2 years ago is a lazy approach to creative development. 

Think" small" and your world instantly becomes bigger.

If your media policy, media strategy, media planning, media buying and media audit are not thinking" small" it's time to talk to an independent media professional.

Media Futures presents industry articles in the constant quest for improving return on media investment.



By Greg Allardice 09 Nov, 2017
In this current economic cycle, media budgets are under great pressure. That means they are being cut, reduced or just not actioned.

Why is this so? Commercial media budgets are set by accountants and CEO's, despite the best efforts of the
Marketing Director to set a budget to grow sales, improve market share and  attract/retain new customers.
Sadly this trend will continue.
The media budget cycle will continue to spiral down in real or indexed terms till the powers that sign off on media budgets recognise that media is an investment, not a cost item.

So how to go about creating a media budget in this current sick state of the media economy?

* Recognise that if competitors in your category are also chopping media budgets then you have the opportunity to increase your budget over a shorter space of time to gain market dominance.

* Set media budget numbers over a 3 year year cycle, but manage quarterly to keep track of unforeseen impacts

* Set your media budget not based on past budget numbers, but  as a percentage of forward sales calculations 

* Budget for growth. Make your budget a part of forward business planning in line with the overall goals and objectives 

* Set regular measurement bench marks against media budget and have guarantees in place if results fall short

* Be brave and don't allow the back room bean counters to dictate the media budget and put you in a  "no win "position

If your media policy, media strategy, media planning, media buying and media audit have not addressed media budgets, Media Futures recommends you seek out out an independent media professional

Media Futures presents industry articles in the constant quest for improving return on media investment
By Greg Allardice 07 Nov, 2017
Media is a seductive beast. It lures you to watch it, read it or listen to it. When making commercial media decisions this seductiveness can take over which leads to poor decisions on how to invest your media budget. The media pitfalls are many and there are millions of cases where poor choices have resulted in the media campaign being a total waste of time and money.

Here are some common pitfalls -

* Believing that media will solve your business issues
* Putting all your eggs in one basket and stacking your media buy into one particular medium
* Failing to check the detail of your media buy before it commences
* Not looking closer into how your media buy will translate in a cluttered media environment
* Believing everything you are told and relying on glossy presentations to win your media spend
* Working initially with a senior media operatives only to have a junior with no practical experience handle the detail
* Failing to conduct post campaign audit and analysing what you actually got

The common thread here is making decisions based on emotional beliefs that the media process will deliver in bucket loads. When you look at the big picture your media spend is only a very small fraction of the total output and therefore what might seem big and impressive to you is really quite insignificant when it happens.

If your media policy, media strategy, media planning, media buying and media audit have by passed the pitfalls of commercial media, it's time to engage with with an independent media professional.

Media Futures presents industry articles in the conquest quest for improving returns on media investment.


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