The Digital Economy
One can feel and experience that state of disruption, that we are currently experiencing as you arrive at an airport and you experience the chaos of the traditional taxi driver shouting out his unique pricing and destination offers at a crowd of travellers that have just disembarked from their journey, not realizing that their chants fall upon deaf ears as small little tech company called UBER has just taken the hassle out of commuting. The existing TAXI model is now redundant and a tech firm that does not own a car is possibly now the world’s largest commuted taxi business.
Disruption will continue and it is amazing to see global businesses adapting to the pace of this change. It is confidently estimated that the pace of change over the next 15 months, will supersede the change experienced over the past 3 years. Globalization and convergence is driving this change with convergence accelerating the point of engagement closer to the point of purchase. It is estimated that smartphone usage will double to 2.6bn handsets by 2019, Mobile ad spend will increase 3x to 200bn USD by 2019, Video and spend will increase 4X to 36bn USD by 2018 and ecommerce will double in size to 2,6 trillion USD by 2018.
Organizations that are not harnessing this and using the state of disruption will inevitably die a very quick death. With this level of change, those in the communications business are reinventing the way they leverage this trend and Dentsu Aegis Network, have organized themselves in such a way that offers clients access to liquid talent across a number of functional capabilities within communications (Media, Digital Media, Experiential, Content, Sponsorship, search etc.). The idea is to move into an era of using cross functional capabilities to solve complex client challenges and deliver media solutions that drive business outcomes.
We have moved from a “RULES” culture that for centuries used books and manuscripts (Bible, Coran) to learn from, this migrated quickly in the 80’s into a world where the golden age of advertising educated and told consumers about product benefits and features, this worked well as people were relatively advertising illiterate, the current times are vastly different. We now live in the EXPERIENCE + TRUST realm where consumer experiences are shared via social media and garner trust from peer to peer endorsement vs the credibility of advertising stories.
The world has moved from Business and brands that harness TRUST data points and leverage these at little, to no expense will be the winners in the digital economy. The possibilities are endless as we start considering data and technology and the impact that these two dimensions have on the reality of shifting consumer awareness to purchase intent. Clients are battling with the pace of change and marketers are having to rely on Digital Specialists to support them in achieving their business objectives, where a few years ago a TV ad and Billboards where common place on many global brand plans.
Convergence is driving the point of consideration and purchase closer and closer, meaning that one thing as sure as death and taxes, is that mobile phones will become the battleground for brands and advertisers going forward, more specifically on the African continent where mobile penetration within the key economic hotspots and cities far exceeds 100%. With this roaming handheld computer tracking your search, social and transport rituals, global media partners and advertising are building out in-depth profiles of individuals and then clumping them into sets and groups of audiences that share similarities. Data is enabling far smarter targeting which delivers the right message at the right time, in the right format and place (phone) to the right person to convince them to not only consider the brand but to purchase. We are seeing shoppable video ads online, which enables a real shift from a world of awareness to trial and real business outcomes.
Carat and DAN are organising their capabilities, systems and process around our Data Lab, meaning that as we move further forward into the digital economy, we will have solutions that are supported by real time data, delivering measurable efficiencies and impact that will Redefine the value of media going forward.
Written by Dominic Malan,
Group Managing Director of Carat
Sub Saharan Africa
Kelly Moses Junior Public Relations officer +27 21 442 5600
Carat’s mission is to Redefine Media. Carat creates better business outcomes for clients through its command of media convergence. Established in 1968 as the world’s first media agency, Carat is part of the Dentsu Aegis Network, the global communications network Innovating the Way Brands Are Built. Consistently at the top of RECMA’s Global Qualitative Evaluation ranking, Carat serves clients in 150 countries via a network of more than 9,000 talented staff. For more information visit Carat.com or follow @CaratGlobal.
About Dentsu Aegis Network
Part of Dentsu Inc., Dentsu Aegis Network is made up of eight global network brands – Carat, Dentsu, Dentsu media, iProspect, Isobar, mcgarrybowen, Posterscope and Vizeum and supported by its specialist/multi-market brands including Amnet, Amplifi, Data2Decisions, Mitchell Communications (PR), psLIVE and 360i. Dentsu Aegis Network is Innovating the Way Brands Are Built for its clients through its best-in-class expertise and capabilities in media, digital and creative communications services. Offering a distinctive and innovative range of products and services, Dentsu Aegis Network is headquartered in London and operates in 123 countries worldwide with over 27,000 dedicated specialists. www.dentsuaegisnetwork.com