ad:tech brain » The Voice of the Industry

New retail site turns group buying on its head…

Mark Abay (ad:tech) — Wed, 31 Aug 2011 00:40:33 +0000

There’s a new kid on the block within the world of group buying sites. However Wyngle is different. Rather than copying the familiar format of offering a discount off the (often inflated) recommended retail price, Wyngle offers consumers the chance to purchase goods and services for just $1.

It’s called ‘ratio shopping’. Each product on the Wyngle site (currently 350+ and growing), be it a digital SLR camera, iPad or road bike, is assigned a ratio (eg 1 in 3, or 1 in 6) which determines (in a secure back end of the site) which customer receives the purchase for just $1, plus delivery. The ratios are clearly marked next to each product on the site so consumers are aware of their chances.

This opens up two interesting scenarios for consumers. Firstly, let’s say you have made the decision to purchase an ipod. You could purchase the ipod from a normal retailer for the full price, or you could take your chances on Wyngle. If successful on Wyngle, you’ll buy the ipod for $1. However if you are ‘unsuccessful’ you’ve simply purchased the product you wanted at the recommended price.

Secondly, if the ipod has 1:3 ratio, you are able to band together with two friends and be guaranteed of getting one of the three ipod for free. You can then share the saving amongst your friends. It’s Wyn-Wyn scenario, if you pardon the pun.

“Wyngle gives Aussie’s the opportunity to get a great product at a fair market price and try their luck to get it for $1. Let’s face it, who wouldn’t buy a product they had already intended to purchase if the price was fair and there was a chance it would be almost free? You can’t lose,” Sebastian Langton, founder of Wyngle said.

Additionally the site provides prestigious brands, that are perhaps more sensitive about price integrity, the opportunity to offer consumers a discounted price without having to plaster the words ’60% Discount off….’ next to their products. It also means that brands can continue to work within the pricing guidelines agreed between the brand and their retailers.

Some observers have criticized the site for promoting ‘gambling’. Of course, there certainly is an element of luck involved, however at no point do you lose your money, so perhaps gambling is too harsh a word. Perhaps it’s more likened to an airline promotion offering you the chance to enter a draw for free flights when you book the flights you had originally intended to book.

Group buying sites have seen unprecedented growth both in Australia and overseas. Many of you will remember the keynote presentation from Spreets at ad:tech Melbourne this year. Shortly after the $40m acquisition of Spreets by Yahoo7! Many other ‘me-too’ group buying sites began to surface in Australia. Whilst it’s early days yet, Wyngle appears to be a refreshing change to what is fast becoming an over-saturated group buying market. It’s certainly a business to keep an eye on.

Call Of Duty marketer: if ad content is good enough, TV networks should pay to show it

Lucy James (ad:tech) — Wed, 09 Mar 2011 05:32:53 +0000

Consumers have not fallen out of love with television – but are no longer willing to put up with bad shows, digital conference Ad:tech was told in a keynote presentation from the marketer responsible for launching gaming blockbuster Call Of Duty’s most recent instalments.

Brad Jakeman, chief creative officer of Activision Blizzard told the audience: “The death of the 30 second spot has occupied way too many column inches.

“The shows that have always had amazing content – and I’d include the Super Bowl in that – are seeing ratings increasing.

“But if you look at programs that never had good content that’s where the precipitous decline is taking place.

“Consumers are not inherently opposed to television.”

Jakeman suggested that he was looking to go even further. Arguing that new content promoting Call of Duty is eagerly anticipated by fans, he said he was going to ask networks to pay him for the privilege of airing it.

Courtesy of mUmbrella

Read full article here.

Core Digital Media advisory council notes – ad:tech sydney 2011

Lucy James (ad:tech) — Fri, 19 Nov 2010 12:16:42 +0000

The Core Digital Media advisory council for ad:tech Sydney 2011 met to discuss the issues that are affecting the market and the content that should be on the ad:tech programme. Here is a summary of the key areas discussed:

Skills and structure
• Who – on the client side – can write the briefs and manage and implement? One person with those skills is hard to find.
• Can’t find best of breed in ‘these’ solutions, especially integrated skills. And, when things are new how do you know what is best of breed?
• How do you get skill sets for things that aren’t even out yet? Where does the responsibility sit?
• There can be a challenge between marketing and IT on the client side. IT have different rules, regulations, ideas etc on what can be done. How to align the company infrastructure – what’s outward serving, inward serving etc.
• And for multinationals you come up against what’s been built out of HQ – which is a challenge for local market like Australia
• Clients are working with a growing number of agencies / outsourcers and they are keen to see who’s integrated
• One business (agency or outsourcer) can’t serve all requirements. Fragmentation and expansion of digital has made this a challenge, integration is absolutely key
• Inefficiencies exist (when there are too many agencies) as does not getting skills (when there are too few agencies)

Creative
• In digital creative hasn’t had the focus it’s needed or ‘meant’ to have to work. There is a challenge to creative community to raise the bar but also the briefing process is flawed because where digital fits the overall creative process isn’t clear.
• Silos kill ideas and creativity but there is a lot of protectionism, confusion over jargon and a limited talent pool in digital.
• Ideally, you’re all the team, not above / below the line and brilliant ideas should be supported regardless of channels. There should be no delineation between ideas –who cares where it came from, or how it rolls out, a great idea should be supported
• Digital gets scrutinised because the numbers are there but the numbers aren’t compared like for like. And there won’t be like for like comparisons because digital sold itself as the great data source.
• Attribution modelling is the key moving forwards. Understanding about how consumers operate now.

Legal
• There are consistent legal implications in digital. How do they ‘fit’ with real time, dynamic, organic nature of digital? And should this be managed internally / externally?
• This will be a bigger issue as brands are evolving to be publishers
• Companies and brands are handing over more of their own assets to customers – especially through social media. But legally ownership still sits with the brand. Consumer behaviour is ahead of the law.
• Privacy is fast tracking now
• Education piece on privacy is planned for consumers.
• The government haven’t considered the positives of targeting behavioural advertising

Email
• EDM is still effective for existing consumers: repeat business / intelligence. But it’s not good for acquisition.
• You can’t personalise email enough
• How many companies are wasting their money on ineffective email
• How much transparency is there between marketing and other departments about the efficacy of emails?
• Quality of the data, strategy, execution is important; having a lot of data doesn’t mean you have a good email strategy.
• The prospect of social media is a more exciting relationship environment than email

Video
• Pre-roll is it the solution we want – is it effective. Demand issue. Are we measuring it well?
• Hulu is coming soon.
• Tivo is sitting between the two worlds, what services do they offer- do they offer value to consumers?
• Debate on providers and the impact on consumers and brands and marketing.
• Crowd sourcing – applied to TV – using principals to make real time decisions vs. search dissection. What do you base your decision on?

Have your say

This is a summary of the points that were made in the meeting. We’ll be working on this and integrating these topics and themes into the ad:tech Sydney 2011 conference programme. If you have feedback on these points or want to make suggestions about additional topics or speakers for the programme then please leave comments or get in touch with me here.