Is 'rentvesting' the new property buyers 'Australian Dream'?

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When we talk about the great Australian dream, for many, we imagined owning a home somewhere in the suburbs sitting on a quarter acre block. However, the housing affordability crisis in Australia is forcing first home buyers to take extraordinary measures to either purchase their home a long distance out from the city or settle for a smaller property such as a unit, apartment or if you’re lucky a townhouse. Today, the great Australian dream is unique to the individual. For some the dream of owning a backyard seems unachievable, while for other Aussie buyers, typically those in Gen Y who are not willing to sacrifice their lifestyle, opting to ‘rentvest’ to get a foothold into the property market is the ideal pathway.

As the great Australian dream slowly vanishes for some, there has been a definite shift in mind-set when purchasing a home among younger Australians. This is reflective of inner-urban apartment living being promoted as an alternative urban trend, as it offers closer proximity to inner city social and employment opportunities. In addition, the tech-savvy and urbanised younger buyers are seeking a different arrangement, location, lifestyle and style to previous generations.  

New Apartment Project Launches by State

New Apartment Project Launches by State (Source: BigDatr)

New Apartment Project Launches by State (Source: BigDatr)

With the combination of rising property prices and changes in buyer behaviour, the market has reacted positively to a radical surge in the number of people embracing apartment living. Victoria has been popular for new apartment projects over the last seven months. With five of the top ten suburbs Australia wide, the inner mixed zone of Melbourne has stood out for new apartment projects. The recent boom of project launches in Australia indicates a change in property buyer behaviour and the one important driver being lifestyle.

Click on the interactive map above which shows us that advertising has been prevalent in the major cities across the country, with Melbourne and Sydney showing a greater spread of suburban apartment projects. (Source: BigDatr)

While lifestyle and affordability are primary influencers for most buyers, to locate a property that incorporates both is becoming more difficult for first home buyers looking to break into the market. Due to the growing housing affordability crisis, some are choosing to ‘rentvest’, making their first property purchase an investment while renting themselves in any location they wish. This is a smart purchasing decision as it allows the buyer to get a foothold into the property market sooner rather than later. Consequently, with the increase in ‘rentvesters’, locations with strong rental opportunities are more attractive than ever before.

Commonwealth Bank's pathway to reaching the property dream with 'Rent-vesting'

Top 10 Suburbs Australia wide with New Apartment projects

Top 10 Suburbs Australia wide with New Apartment project (Source: BigDatr)

Top 10 Suburbs Australia wide with New Apartment project (Source: BigDatr)

Overall Australians looking to buy property are being forced to be more creative in their purchasing decisions and saving strategies. According to Canstar, a survey from Mortgage Choice indicates that buyers are making lifestyle sacrifices to buy property. The majority of people (78.1%) are cutting back on day-to-day spending to achieve their property investment goals, while not taking holidays is the second lifestyle aspect being sacrificed at 55.4% of investors.

Other aspects of investors lifestyles being sacrificed include:

  • Delaying the purchase of a vehicle 38.7%

  • Taking on an additional job 20%

  • Changing jobs for higher income 18.4%

  • Delaying having children 10.8%

  • Moving back in/staying with your parents or in-laws to save money 8.6%

  • Moving to cheaper shared accommodation beforehand to save 8.2%

  • Other 1%
     

Australia's skyrocketing property prices is causing first home buyers to take a longer route to home ownership are are being forced to rethink their property buying strategy, with the option to rentvest presents both choice and flexibility for buyers.

Alibaba introduces 'Smile to pay' facial recognition, Apple to follow suit?

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E-commerce and online manufacturer giant, Alibaba collaborates with KFC to unveil 'Smile to Pay' facial recognition in Hangzhou, China where the company's global HQ is located. The latest technology service allows customers to process their payment by simply flashing a smile once their order has been placed at the fast-food restaurant. 

Alibaba's subsidiary, Ant Financial, behind the new facial recognition payment system aims to revolutionise offline retail spaces through innovative technology. 'Smile to Pay' only takes two seconds to scan a person's face using 3D camera and a "live-ness detection algorithm" to fight fraud and guarantee a user's identity. The algorithm can detect shadows and additional features that can only come from living humans therefore automatically blocking photos and videos with additional mobile phone verification to "further ensure the security of transactions", Ant Financial says. 

“While Smile to Pay provides convenience for users like never before, we have always placed security at the core of this technology,”
— Jidong Chen, Ant Financial's director of biometric identification technology.

Watch as Alipay's new technology scans hundreds of feature points on your face to make payments easier and more secure.

We are moving towards a cashless society where digital payments are evolving and we are quickly moving away from carrying a wallet and less in hard cash, relying on our smartphones for making payments. Alipays breakthrough in facial recognition technology means that customers won't need to pull out their wallets - or even smartphones. The technology is available to customers registered to the Alipay app - the mobile and online payment platform established in Hangzhou by Alibaba's founder Jack Ma. The launch sits in line with Yum China's plans to attract younger generation of customers. 

Facial recognition is expected to be added to the new iPhone 8 according to Bloomberg reports, which will include sensors to help recognise the face of owners of the iPhone 8. Other brands including Samsung have introduced face and eye recognition however they have been blighted by an inability to recognise quickly, as for Apple's "industry first" allowing users to authenticate payments using facial recognition, which we can assume will be linked with Apple Pay. 

Apple iPhone 8 3D facial recognition sensor to unlock phone and make payments (Source: BloombergTechnology)

Apple iPhone 8 3D facial recognition sensor to unlock phone and make payments (Source: BloombergTechnology)

BigDatr August Marketing News

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CBS to buy Network Ten

US-based giant media broadcaster CBS Corporation has agreed to buy Network Ten from administrators KordaMentha. CBS Corporation has entered a binding transaction document to purchase the network and assets of Ten, which means billionaires Lachlan Murdoch and Bruce Gordan have failed in their attempt to take control. CEO of Ten, Paul Anderson says "CBS and Ten have had a strong relationship for a number of years. We are very excited about further developing that relationship with CBS as an owner and strength that they will provide to the company at this critical time."

 
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KFC Creates VR Escape Room

KFC launches “The Hard Way”, a virtual Escape Room that traps players in a secret haunted lodge of Colonel Sanders until they can fry its Original Recipe of wings and thighs. The spooky stunt aims to train new employees to give them a better feel for the brand’s personality challenging staff to master the five key steps in cooking - inspecting, rinsing, breading, racking and pressure frying the chicken. George Felix, KFC’s U.S. director of advertising says they wanted to create a fun and engaging way to highlight the heritage behind its chicken recipe, using gamification and immersive participation to make it more memorable.

Watch KFC Escape Room video play through

 
KFC The Hard Way VR
 

First 'No' Campaign to same-sex marriage

The Coalition for Marriage has launched its first national TV campaign encouraging parents to vote against same-sex marriage, ‘Parents have lost their right to choose’. The 30-second ad spot features three mothers highlighting their concerns about how the law changes will affect what is taught and promoted in schools. The campaign has caused immediate backlash over social media. Bill Shorten has commented on the campaign saying the ad is “offensive and hurtful to LGBTI Australians and their families.”

Watch Coalition’s for Marriage Campaign

 
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'Yes' campaign's response to 'No' Ad

The controversial 'No' to same sex marriage campaign has fuelled a timely response by The Equality Campaign releasing it's 'Yes' campaign which launched last night. The TV spot features prominent Dr Kerryn Phelps responding back to the 'No' campaign, "Over the coming weeks we'll be hearing a lot about whether our family and friends who are gay and lesbian can get married," and continues " Sadly, some are trying to mislead us, like this ad does, by saying marriage equality will have a negative impact, including on young people".

A voluntary postal vote to legalise same-sex marriage will be held next month.

Watch 'Yes' campaign TV spot 

 
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Coca-Cola brings world's first 3D robotic billboard

Coca-Cola introduces the world’s first robotic sign, giving billboards a spectacular three-dimensional look in New York Times Square. The iconic beverage brings the brand to life with its six-story 3D digital billboard design which uses 1,760 LED screens, moving independently of one another with programmed choreography creating a multi-sensory experience for its commuters. Golden's Display Devices partnered with Coca-Cola to deliver a pioneering concept in out-of-home advertising in the hopes to catch people's attention and engage with the brand's message for a longer period.

Take a look at Coca-Cola’s Robotic Billboard

 
 

Snapchat lets advertisers control where content appears

Snapchat now allows advertisers to manually control where their ads appear within the social sharing app to avoid experiencing ads appearing next to extremist content, like YouTube, Twitter and Facebook all dealing with the same safety concerns. Advertisers are demanding more transparency into where their ads are running, with self-buy social sharing platform letting publishers choose to place ads between people's stories or only within the stories and shows produced by snapchat and media companies working. 

 
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Facebook pages sharing fake news will be blocked from advertising


Facebook is flooded with fake news and viral hoaxes, and the social network is taking action to help remove the spread of fabricated stories. Facebook is now blocking publishers from buying advertising if they regularly share fake news. The social network was criticised last year for helping spread fake/false news. Facebook says misinofrmation is harmful, and calls out pages who spread fake news for making the world "less informed". 

 
Image source: Techcrunch

Image source: Techcrunch

 

Movements across Media, Marketing and Advertising
 

  • Nissan Australia announces new CEO Stephen Lester after departure of Managing Director and CEO Richard Emery. 
     
  • Honda Motor Co has a new Managing Director and CEO, Hiroyuki Shimizu. Hiroyuki was previously Director and Senior Vice president of Honda India and has taken over the reigns in Australia from Managing Director and CEO Noriyuki Takakura. 
     
  • Paul Everson promoted from General Manager to Managing Director after the departure of current Managing Director Jenny Willits.  
     
  • Clemenger BBDO Melbourne has appointed Alexandra Johnson as General Manger of NAB's account.
     
  • The Monkeys has announced Paul McMillan as CEO of the ad agency. Paul is currently Managing director of Clemenger BBDO Melbourne. Clemenger BBDO's Planning Director Michael Derepas will also be joining The Monkeys.

Coca-Cola brings world’s first 3D robotic billboard

Image: Coca-Cola and Fans Celebrate World’s First 3D Robotic Sign in Times Square

Image: Coca-Cola and Fans Celebrate World’s First 3D Robotic Sign in Times Square

Coca-Cola introduces the world’s first robotic sign, giving billboards a spectacular three dimensional look in New York Times Square. The iconic beverage brings the brand to life with its six-story 3D digital billboard design which uses 1,760 LED screens, moving independently of one another with programmed choreography creating a multi-sensory experience for its commuters. Golden's Display Devices partnered with Coca-Cola to deliver a pioneering concept in out-of-home advertising in the hopes to catch people's attention and engage with the brand's message for a longer period.

Times Square is the heart of epic outdoor advertising and for a century, Coca-Cola has placed large outdoor advertising signs in NYC's Times Square switching from its curvy kinetic LED sculpture created back in 2004 to the new robotic LED billboard launched August 8th 2017. The campaign billboard launch also involved seating installation releasing a refreshingly cool mist with Coca-Cola brand ambassadors distributing its soft drink product range to the crowd. The Coca-Cola team hopes that the campaign will "inspire thirsty onlookers to crave an ice-cold Coca-Cola."

From the beginning, our brief was to create a pause-and-refresh moment in the crowded environment of Times Square. Our propriety 3D technology brings our icnonic brands to life in a unique and differentiated way that will hopfully catch people’s attention and make them want to engage for a longer period of time
— Kim Gnatt - Group Director, Business Strategy, Coca-Cola North America

The very first out-of-home billboard of Coca-Cola was placed in Times Square in 1920, which makes it one of the worlds longest running billboards. Coca-Cola's outdoor advertising has helped add personality to America's landmark crossroads for being the central hub of 24/7 advertising. Coca-Cola in the past has continually innovated with its outdoor advertising from around the world including the iconic neon lights in Piccadilly Circus in London to Kings Cross in Sydney, showing that they take lead with outdoor innovation.

The Piccadily Sign: Coca-Cola 

The Piccadily Sign: Coca-Cola 

BigDatr July Marketing News

Image source: Recode

Image source: Recode

Facebook TV to roll out this month

Facebook’s version of TV is debuting online in August, by partnering with several media companies to create short inexpensive productions. Facebook TV intends on creating high-end videos, competing directly with Google’s YouTube, however the social platform is claiming that they are not competing with video producers like Netflix, HBO and ShowTime, according to Bloomberg.

Facebook will be funding a number of original programs, that will be shown outside of a users news feed. The new video section will likely give Facebook a greater cut of the $70 billion television advertising market. 

 
 

Mercedes-Benz collaborates with Airbnb

Mercedes-Benz and Airbnb join forces to launch the brand new Marco Polo Activity Van by offering a trendy, modern “glamping” style set up on Cockatoo Island.

In an approach to do things “differently”, managing director of Mercedes-Benz Vans Australia Diane Tarr says, “Instead of a regular vehicle launch, we wanted to bring the spirit of the Marco Polo to life”.

Nine lucky couples who book through Airbnb will spend a night on the island in the new van, enjoying hampers and breakfast provided by SONOMA.

The campaign is being promoted via the #MarcoPoloActivity social.

 
 

What marketers need to know about Gen Z

For marketers looking to target the new generation of youngsters, aka Generation Z (born after 1995), an advertisers approach to reaching and connecting with this generation will differ from millennials. Gen Z have been viewing the world through the lens of their mobile, and their smartphones have become an extension of themselves. For brands to keep up with Gen Z, marketers will have to re-position quick enough before the momentum of this generation becomes overwhelming and difficult to catch up. Here are some key takeaways that marketers need to know about engaging with the next generation in order to build a successful brand for yourself. Read More

 
 

Businesses on Instagram can get insight metrics via the API

Brands and businesses using Instagram to reach their audience can now access performance metrics via the API platform built on the same stack as Facebook’s Graph API. Instagram has enhanced accessibility to metrics and insights that will give businesses the opportunity to stay on top of the performance of organic content more effectively.

 
 

Macquarie Group pushes into consumer banking to now define the big 5 banks

Macquarie Group pushes hard into the consumer transactional banking market, with their latest advertising campaigns and new consumer banking system roll out. Macquarie Group which traditionally sat behind the scenes underwriting much of the Australian finance market now positions itself as a “big 5 bank", openly competing with the likes of NAB, Commonwealth Bank, Westpac and ANZ. Read More

 
 

Coca-Cola scraps Coke Zero for new product

Coca-Cola terminates its Coke Zero products in favour of new recipe Coca-Cola Zero Sugar. Distinguishing the difference between the two products is hard to tell, however the branding and design of the packaging has encountered a significant change. Changes to the product seem to be more marketing rather than the drink itself. Adding ‘zero sugar’ to the name rather than ‘zero’ the brand more clearly communicates that it doesn't contain sugar.

 
 


Movements across Media, Marketing and Advertising

  • Tami Cunningham has been appointed as Marketing Director for the Vitamin manufacturer and distributor Blackmores Australia and New Zealand. Tami has come from working for Wrigley, Lion and most recently PepsiCo. 
     
  • RedBalloon CEO Nick Baker departs RedBalloon. Big Red Group co-founder David Anderson will take on CEO responsibilities for RedBalloon. 
     
  • Clemenger BBDO, Melbourne promotes Evan Roberts and Stephen de Wolf to Executive Creative Director roles after the exit of chief creative office Ant Keogh. 
     
  • Russell Hopson appointed as Group Managing Director at M&C Saatchi
     
  • Fiona Johnston to lead UM as CEO. Currently Fiona Johnston is the founder of marketing consultancy Wild and Safe, working with C-suite executives at Coca-Cola, eBay, and AFL.
     
  •  APN Outdoor CEO Richard Herring will retire in September after 22 years.

Macquarie Group pushes into consumer banking to now define the big 5 banks

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Big 5 Banks - Average Monthly Share Price in $AUD (Close)

Westpac vs Commonwealth vs ANZ vs NAB vs Maquarie

Macquarie Group pushes hard into the consumer transactional banking market, with their latest advertising campaigns and new consumer banking system roll out. Macquarie Group which traditionally sat behind the scenes underwriting much of the Australian finance market now positions itself as a “big 5 bank", openly competing with the likes of NAB, Commonwealth Bank, Westpac and ANZ.

The retail banking space is transforming rapidly with brands advancing in digital technology, fostering a connection with customers and banks. Macquarie Bank enhances the digital banking experience for consumers, launching its new online and mobile banking platform in September last year for personal banking customers. The digital platform is no ordinary digital e-bank offering, rather it harnesses a combination of features that is the “first” to the Australian market by taking a more personalised approach. Digital disruption is setting new benchmarks in customer experience, with many brands empowering new technology in their business models.

Market Cap in Billions ($AUD)

Data as at 24 July 2017

The innovative and personalised digital banking system developed by Macquarie Bank also acts as a money management tool for customers. Not only will customers be able to view a list of their online transactions, but also manage and track their spending so that it aligns with their budget and goals. What makes Macquarie digital app so appealing is that it draws inspiration from customer experiences delivered by popular apps including Netflix, Facebook and Spotify.

Macquarie Bank Transaction Account Offers

Macquarie Bank Transaction Account Offers

Macquarie’s app won the CANSTAR Innovation Excellence Awards for its number of unique and intuitive features including:

  • Automatically categorising transactions - Using machine learning technology that groups customer spend on groceries, travel, leisure, food, drink, technology and more.

  • Giving customers the ability to search like Google - The way users turn to Google for answers, customers can do the same within the app by asking specific questions about their own transactions. E.g “How much did I spend on groceries last month?”

  • Add Hashtags and track transactions - Customers can tag statements, tax returns and important documentation to easily track what they are looking for. For e.g. #Tax

  • Upload receipts and warranties - Customers can attach receipts and warranty documents keeping everything all in one place without having to worry about lost receipts.

  • Set saving and spending goals - Gives customers the ability to set goals and stick to their budget. Customers can view cash flow trends to help manage their overall net wealth position. 

Combining all these unique features in one platform enables customers to better manage and control their funds and provide greater insights into their spending behaviours updated all in real time. The move represents the bank taking the extra step to guide customers rather than simply listing all their transactions. The competitive nature of the digital space in banking is fierce with Macquarie Bank launching its new tech to position themselves differently from their competitors.  

BigDatr's Campaign Library collection of Macquarie Bank campaigns

BigDatr's Campaign Library collection of Macquarie Bank campaigns

BigDatr's Campaign Library has picked up Macquarie Bank's very first campaigns targeting consumers which rolled out in June, across Out-of-home, Digital, Newspaper and Online video. Campaigns launched include "We Bank With Macquarie", "My Bank Gives Me Confidence", "Our Home Loan Is With Macquarie" and "We Wanted Smarter Banking."  The campaigns message promote the smarter choice banking with Macquarie and the digital journey will ensure quick online transactions that can be made effortlessly. 

 
Macquarie Newspaper campaign  Source: BigDatr Campaign Library.

Macquarie Newspaper campaign  Source: BigDatr Campaign Library.

 

The newly launched e-banking, is an attempt to break into the consumer transactional market, home loans, savings accounts and credit cards. Macquarie Groups shares have climbed with share prices moving up and to the right, with much growth potential still to be seen for the globally diversified business. 

What marketers need to know about Gen Z

Image source: Pinterest 

Image source: Pinterest 

For marketers looking to target the new generation of youngsters, aka Generation Z (born after 1995), an advertisers approach to reaching and connecting with this generation will differ from millennials. Gen Z have been viewing the world through the lens of their mobile, and their smartphones have become an extension of themselves. For brands to keep up with Gen Z, marketers will have to re-position quick enough before the momentum of this generation becomes overwhelming and difficult to catch up.

Gen Z is the first truly digital generation, and are the first to never know life without the super easy access to the internet and mobile technology. They are tech savvy and have an intuitive understanding of social media, being drawn to Snapchat, Facebook and Instagram. They have grown up with social media, by observing their parents and sibling using it at a young age. For businesses targeting a generation that has grown up with social media, brands will need to excite them and be on top of their social game.  

Here are some key takeaways that marketers need to know about engaging with the next generation in order to build a successful brand for yourself:

1. Be Authentic

To connect with Gen Z, marketers need to listen more than ever before. Your brand should tell a compelling story, yet needs to be real and honest. To engage with the next generation, your brands messaging and communication must be authentic.

The best form of creating a conversation with a brand, is to engage with brand ambassadors who can easily enter a dialogue with them. 

Remember that Generation Z change out of trends really quickly, and digital gives them the choice to terminate and move on quicker than ever before.

2. Keep it short, sharp and entertaining

Gen Z attention spans are shorter given the on-demand delivery ecosystem, swiping away at any moment to online interaction is the norm. It is likely that Gen Zers won't sit still long enough to watch a dull and boring 15-30 second ad. Give them the full story in 8 seconds or less. Your brand needs to help them understand what the content is about, why they should care and how it will help or entertain them. 

3. Be on top of your social game

The Gen Z group has never known life without the internet, and when it comes to social media they spend most of their time using YouTube, Facebook, Instagram, Snapchat, Twitter and Tumblr, with some teens checking their social media accounts up to 100 times a day. Through social media, teens are creating their own personal brand to reflect how they want to be perceived. 

Snapchat ads are an example of users interacting with the brand in a personal and fun way, and leads to a more positive brand image. There are so many brands getting on board with SnapAds, with Cadbury successfully executed their Cream Egg Snapchat filter. 

Cadbury Cream Egg filer on SnapChat. (Image from Trendhunter.com)

Cadbury Cream Egg filer on SnapChat. (Image from Trendhunter.com)

 

4. Use video and visual communication

Gen Z's live in an emoji-era, preferring visual over word. They communicate with symbols and images, speaking in emoticons, emojis and glyphs. This is evident in they way the younger generation use Snapchat videos and use visuals to communicate via a meme. They consume most of their time in watching videos online, with YouTube being a must have. 

When it comes to promoting products and services, video content is one of the most effective mediums in offering value to both Millennials and Gen Z.  

5. Influencers resonate more than celebrities

Gen Z sees social influence in a different way. They would much rather see influencers that they can relate to instead of formal celebrities. A study found that Gen Z members were not as interested in ads that featured celebrities and are more receptive to ads that offered interesting creative, told a story, were humorous and had captivating music. Gen Zers follow a mass YouTube following and idolise bloggers and vloggers for the honest opinions. 

Influencer-driven marketing on social media is super powerful in driving conversation between the consumer and brand. Adidas effectively ran a campaign which generated massive user engagement via Instagram. To launch their new line, Adidas collaborated with Selena Gomez to kickstart their #MyNeoShoot campaign on Instagram, with the help of top influencers to leverage to generate social buzz. The campaign received 12,000 entries for the content and over 71,000 hashtag mentions. By working with celebrities, Instagram influencers and everyday users, Adidas was able to reach millions of engaged consumers. 

New post is up on skinnyliar.com 🙆🏽 @adidasneo #outfit

A post shared by Iga Wysocka (@igawysocka) on

The time has come for marketers to shift their focus from Gen Y or Millennials to the next generation of digital natives, Generation Z. 

BigDatr June Marketing News

 
Image source: Ad Age

Image source: Ad Age

Ten goes into voluntary administration

Network Ten was forced to go into voluntary administration earlier in the month after its billionaire shareholders said that they would no longer guarantee a key loan, putting the TV network at risk of insolvency.

Ten Network has been appointed Korda Mentha as voluntary administrators of the company and its subsidiaries. Fans of network Ten’s top shows The Project, MasterChef and The Bachelorette were assured that their programs will not be discarded mid-season.

 
 

Government cuts broadcasting licence fees 

The Federal Government announced it will cut broadcasting licence fees for commercial free-to-air television and radio broadcasters in a bid to take pressure from foreign tech companies and online streaming services. The one-off relief for 2016-2017 will save Seven, Nine and Ten Network $127 million. The move to remove broadcasting fees stems from Channel Ten entering voluntary administration after failing to secure a key credit loan. 

 
 

Ogilvy Melbourne wins Cadbury Account

Cadbury Dairy Milk has appointed Ogilvy Melbourne as the local creative agency and will take on campaign responsibilities in Australia and New Zealand. Current agency Saatchi & Saatchi have held the Cadbury Dairy account for five years. 

Ogilvy will be responsible for Cadbury brands including, Favourites, Roses, Coco, Old Gold, Cherry Ripe, Picnic, Twirl, Crunchie, Boost and Moro. Some of Cadbury’s successful past campaigns created by Saatchi & Saatchi include, ‘Joyville’, ‘Where will you go?’ and ‘Everyone gets their favourites’.

 
 

FOXTEL gets a brand makeover

Foxtel repositions its brand with a new logo and has confirmed that it will be bringing a dedicated streaming box to the Australian market. The pay TV subscription brand has undergone a radical corporate makeover with a new re-designed logo, new programming and affordable pricing to shake up its position in the Australian market, going head-to-head against younger rivals Netflix, Amazon and Stan.

 
 

McDonald's ends Olympics Partnership

McDonald's withdraws their long 40-year partnership with the International Olympic Committee. The sponsorship agreement has ended three years early, however will continue to partner the Korea 2018 Winter games, but not participate in the 2020 Tokyo games. 

The move by the fast food chain said it was "reconsidering all aspects of its International Olympics Committee business" as a plan to re-invigorate its business. The International Olympics Committee understand that "McDonald's is looking to focus on different business priorities". 

 
 

Google releases new TensorFlow Object Detection API

Google releases brand new TensorFlow object detection API that will make it super easy for developers, researchers and enthusiasts to pinpoint objects within images. The new open-source framework, will give developers the power to construct, train and deploy object detection models. The API includes models that are designed to work on comparatively simple devices, like smartphones. Artificial intelligence gives a simple photograph the power to recognise objects, facial recognition and even the detection of landmarks. 

 
 

Movements across Media, Marketing and Advertising

  • Toyota CMO Brad Cramb joins Audi as new Sales Director
     
  • John Driscoll Marketforce CEO steps down after almost 30 years and joins Seven West Media as new CEO for Western Australia.
     
  • Nick Chan CEO of Bauer Media departs, after over a year in the role. New Zealand boss Paul Dykzeul will lead Australia and New Zealand Bauer.
     
  • News Corp's Nic Hodges joins Foxtel to lead Commercial Innovation.
     
  • Clemenger BBDO Sydney has appointed Leo Burnett's Chief Operating Officer Jeremy de Viliers to the agency as Head of Operations. 

Amazon buys Whole Foods for $18 billion moving into grocery delivery

Image source: Adweek

Image source: Adweek

The food retailing industry just changed to a whole new level, when eCommerce giant Amazon announced it was buying organic grocery chain Whole Foods for $AU 18 billion on June 16. This “game changer” to the supermarket sector will shake things up for both competitors and shoppers. The move to provide quick online grocery delivery at rock bottom prices causes an industry compression to profit margins (to those without automation) and revolutionise the in-store shopping experience through innovative technologies.

Amazon already has a grocery delivery business in place via Amazon Fresh, competing with Instacart, FreshDirect and Google Express. However the latest move with Whole Foods will change the landscape of the food retail sector radically. Amazon will own a nationwide network of Whole Food stores and solve the logistical issues involved in sourcing and storing fresh food.  

Amazon which started as an online book store 20 years ago has ventured into a number of e-commerce opportunities. Some of these opportunities include developing its very own delivery network, offering everything from packaged goods and online streaming television to being a cloud data service provider and now introducing groceries delivered to your front door.  

We can expect to see rivalry grocery stores jump on the bandwagon and invest in building out more tech in order to keep up with changing consumer behaviour of how people purchase food and get it delivered.

Chief executive of Amazon, Jeff Bezos has expanded the company delivering a range of products, and this is the latest big move for Amazon. 

Whole Foods Market has been satisfying, delighting and nourishing customers for nearly four decades - they’re doing an amazing job and we want that to continue.
— Mr Bezos

Amazon could try to use automation and data analysis to draw more customers to stores to help Whole Foods cut costs and even prices. The 460 Whole Foods stores across the U.S, Canada and U.K could potentially turn into distribution hubs -  for both delivering groceries, and the option to pickup for online orders. 

Australia's two biggest supermarket groups Woolworths and Coles are facing intense competition from international players such as Aldi, with Amazon's announcement posing as a threat. Amazon announced it will be setting up infrastructure for retail offering in Australia, which could be operational over the next year or so, including grocery delivery business Amazon Fresh. Coles and Woolies will need to put more pressure on suppliers to reduce costs, and innovate fast enough to stay up to date with the new future landscape. Yesterday Woolworths shares went down 3.5 per cent, while Westfarmers was down 0.2 per cent.

 

Snapchat launches self-serve ad platform

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Last month, Snap announced that they were building a self-serve tool for advertisers and now have rolled out the new ‘Snapchat Ad Manager’ buying tool on Monday.
Snap’s Ad Manager self-serve tool will give advertisers full control, and remove friction in the ad-buying process. This means that pretty much anyone can purchase ads on Snapchat removing the reliance of an account manager. 

The Ad Manager tool is designed for advertisers big or small to advertise on Snapchat with the ability to manage, optimise and view reporting metrics on the campaign's performance. There is no minimum spend required, with advertisers being able to get started with just a few dollars. 

Opportunity for smaller businesses

The latest self-serve tool will cater to small and medium sized businesses, enabling advertisers to save on large costs by reducing labor-intensive costs. Snapchat's move to introduce Ad Manager is a move to scale its ad platform.

Last week we announced our first Snap Ads self-service product, called Snapchat Ad manager. Our goal is to put the power of our ad products into the hands of every advertiser, regardless of their size. This tool supports all of our ad products, targeting capabilities; and goal-based auction solutions, which allows advertisers to bid for swipes or bid for app installs.
— Imran Khan (Chief Strategy Office of Snapchat)

Advertisers will get access to performance data of their campaigns via Snapchat Ad Manager and also be able to choose specific objectives for the campaign, and targeting ads based on demographic factors.
 

Snap Publisher 

Above: Advertisers can create their own advertising artwork using Snap Publisher

Above: Advertisers can create their own advertising artwork using Snap Publisher

Snap has announced new tool Snap Publisher which gives advertisers the opportunity to design ads in-house via Snapchat, which will roll out sometime in July. Advertisers can create an ad within minutes, with a library of themes provided by Snapchat.

Snap Publisher will import brand assets, trim horizontal videos for vertical format, offers themed ad templates for different campaign objectives, adds motion to static photos, opportunity to run an A/B test to different ad variants for performance, and lets marketers buy through the Ad Manager with just a few simple steps.