Mark Frain, CEO, Foxtel Media
2022 was a very strong year for the advertising industry, with momentum continuing all the way through the year as previously dormant categories such as travel and tourism came back big. Media companies benefitted from the new consumer habits accelerated by the pandemic and more brands invested in growth.
2023 will be a year of continued opportunity characterised by major shifts both within the media sector, but also in the overall economy. We’re all aware of the cost-of-living crisis, as the RBA and government grapples with inflationary pressures and everyday Australians feel the effects in their wallets. Advertising arguably becomes even more important in this environment. Slashing marketing budgets is proven to amplify the effects of a downturn on a business.
2023 will also herald the arrival of new “TV” advertising inventory across Netflix, Disney+ and of course Binge. This represents the opening salvo in what will, in time, redefine how advertisers look at TV. The language around TV will need to evolve to stay relevant, as will how brands measure audiences (and therefore assign budgets). Within three years, the very idea of average audiences and average ratings will likely be a distant memory.
In the coming twelve months, the industry will face continued pressure when it comes to talent. To keep the best talent, organisations will need to take their people along the journey with them by providing training and advancement opportunities. Another key issue will be ESG – and how the media sector at large can become a better corporate citizen. We’ve made some strong strides in this area by reducing our own environmental footprint at the Foxtel Group in line with our sustainability goals and are also committed to use our reach and programming to raise awareness of environmental issues. I believe coming into negotiations for 2024, it will be critical to have your house in order or at least a detailed plan for change.
Our mantra for 2023 will be three key words: Watchability, Connectivity and Useability. This means providing the best viewer experience, making data work-harder to empower intelligent media decision-making, and of course delivering the most effective advertising environments to our partners.
Sally Kissane, CEO, ANZ Ogilvy Network 2022 summed up in a word: “bumpy” 2023 prediction: “bumpy”
The last few years have challenged our industry in more than any other over the past decade. Some changes have been great, others not so much. Hence the word ‘bumpy’.
As we came out of the pandemic, many of us hoped that we would see more certainty in the shape of the work we do, and the shape of our clients’ business challenges. Yet the reality of 2022 demonstrated that the new normal continues to be anything but normal.
The flow-on effect of the ‘floods of the century’ was profound and impacted many businesses, particularly in the food space, with supply chains crippled and a national shortage on fresh food. Let’s not forget a period where you literally could not buy a basic staple like iceberg lettuce.
Add to that the Shanghai lock-down further crippling supply chains and resulting in planned activities being shelved or postponed until product availability could be more certain. I even read yesterday that if you are in the market for a Toyota Landcruiser, you might have to wait between 12 and 24 months!
Meanwhile, the most recent cyber-attacks on Optus and Medibank have rightly rattled consumers and reinforced the need for brands to protect their customers at all costs.
And then finally, a change of government for the first time in 10 years, at a time of compounding economic uncertainty, added a further element of unpredictability for most Australian marketers.
On the flipside, some changes from the pandemic - particularly the hybrid working model - have had a positive impact and will continue as part of new normal into 2023, and beyond.
Overall, our outlook for 2023 is to be prepared for more of the unexpected and have a strong point-of-view on what your strategy is for combatting it.
Every problem is an opportunity, and if consumers are feeling uneasy, smart brands can turn a negative into a positive. It might be as simple as putting a smile on their face or adding some genuine utility to their life. Either way, as long as it’s relevant and consistent with your brand, you can play a meaningful role.
That consistency point is important though. While brands have always needed to be adaptable to what’s going on in culture and society, they also need to be true to who they are, and what they’ve stood for. In a time of consumer uncertainty, acting inconsistently or being too reactive won’t help instill much confidence in your audience.
If the craziness of the last few years has taught us anything, it’s that while we need to be prepared for bumps on the road, we also need to hold our nerve, focusing on the long game, and stay true to our brands.
I’m looking forward to the industry continuing to reconnect as a community and embedding our industry purpose We Are The Changers.
CEO, MFA Sophie Madden
Sophie Madden, CEO, Media Federation of Australia
2022 was almost like breath of fresh air. We emerged out of COVID lockdowns and returned to the office (sort of) and embraced working differently and trialling new approaches – hybrid, flexible, four-day weeks, working from overseas, hot-desking and co-working spaces, to name just a few.
We saw healthy growth in marketing investment and heavy pitching activity meant robust business growth.
On the other hand, talent and pressure on our people was the biggest challenge for businesses of all sizes – negatively impacting our ability to attract, retain and support industry talent. This is not surprising amidst a global talent crisis. Australia is simply not a destination of choice for overseas talent, and so a 19%-plus growth in our industry population year-on-year still carried a 12% vacancy rate.
However, the positive impact of this is that we’ve seen some great strides in how our industry manages talent: - A genuine focus on diversity, equity and inclusion; - Investment in the overall wellbeing of our people;- and innovations in how we work not just in flexibility, but investments in automation and capability
