Speaking Sensis

The latest Sensis® Consumer Report found a second successive quarter of improvement in consumer confidence – report author Christena Singh tells us why now is the time to kick goals for your business.

The latest Sensis® Consumer Report found consumer confidence up again – increasing by 13 percentage points and building on the previous quarter’s increase of 18 percentage points.

But let’s step back a bit. Consumer confidence peaked at a net balance of 61 per cent in November 2007. At this time consumers were not showing signs of concern about economic conditions in Australia. There were a few rumblings happening overseas though at this stage, and we had already measured are largest fall to that time in business confidence. It would be almost another year before the collapse of Lehman Brothers.

Consumer confidence fell to its lowest point in February this year – a net balance of 21 per cent. Overall, consumer confidence fell some 40 percentage points. This quarter’s increase represents consumer confidence recovering over three-quarters of the amount that it lost. That recovery has taken place within the past six months. Playing fields can shift quickly…

Now, to move to a completely different tack, we also had a bit of a look at how sport affects Australian consumers – and as a great sporting nation it is not surprising that over three-quarters of Australian are sporting fans. Consumers that were sporting fans were more confidence than those that were not.

Around Australia, the Australian Cricket Team was the most nominated as the favourite team, but looking around the states and territories AFL teams were most likely to be named as favourite in most states.

Now, my allegiances as a Melbourne Demons supporter are well known, and I was a bit disappointed that we did not top the list, but my second team “whoever plays Collingwood” did better. While Collingwood topped the charts for teams in Victoria, if you take all other teams together, anyone but Collingwood comes on top…

But on the economic front, Team Australia has been kicking goals – our economic fundamentals are the envy of most developed economies, based on decades of economic reforms. Australia did not record a technical recession, our major financial institutions have remained strong and our unemployment levels have not even come close to predictions.

But for many businesses the playing field has felt a lot different in the past year, with consumer spending having been impacted in many sectors. Australian consumers are expecting the economy to continue growing over the next year, and their spending expectations are improving. Recognising that Australia is on the path to recovery and positioning your business to take advantage of the opportunities of growth will be an important step to making sure that your business keeps kicking goals in the next few years.

Australia’s top ten favourite sports:
1.    AFL (21 per cent)
2.    NRL (12 per cent)
3.    Cricket (11 per cent)
4.    Soccer (11 per cent)
5.    Tennis (nine per cent)
6.    Swimming (four per cent)
7.    Netball (four per cent)
8.    Motor sports (four per cent)
9.    Rugby Union (three per cent)
10.    Golf (three per cent)

Australia’s favourite teams:
1.    Australian Cricket Team
2.    Adelaide Crows
3.    Collingwood Magpies
4.    Brisbane Broncos
5.    West Coast Eagles
6.    Carlton Blues
7.    Essendon Bombers
8.    Sydney Swans
9.    Hawthorn Hawks
10.    Fremantle Dockers

Australia’s small and medium businesses have recorded another record quarter of surging business confidence – author of the Sensis® Business Index Christena Singh tells us where exactly we are on the path to economic recovery.

It was great to see another surge in business confidence amongst Australia’s small and medium businesses this quarter. In the September 2009 Sensis® Business Index we saw confidence up 20 percentage points to a net balance result of 50 per cent.

But it is important to look at the path we have trodden over the past few years.  This result has come from a record low of 12 per cent just two quarters ago.  Overall, the highest result we have every measured for SME net confidence was 67 per cent back in August 2004, so a result of 50 per cent, coming from a record low two quarters ago is strong by any measure.

If we take another step back, it is almost two years since Australia’s small and medium businesses told us their confidence was slipping – we measured the largest single quarter drop in SME confidence in November 2007, with confidence falling almost every quarter between then and June this year. So to see two successive records set in growth in the confidence indicator is great news.

While the results this quarter are very positive, it is important to look at the detailed analysis as well, and this shows that the growth in confidence and expectations is much stronger than the growth in performance. The September 2009 results saw sales improve strongly, but it was to a zero per cent net balance – this means that the proportion of SMEs that increased their sales in the past quarter was exactly balanced by the proportion that recorded a fall.

Likewise, profitability improved, but remains net negative. Employment fell back to net negative five per cent, and while the capital expenditure performance was strong, it has continued to outstrip expectations, with SMEs still hesitant about investing in their businesses.

So while the signs for recovery are good, there are still downside risks, and it will be important to see the performance indicators move into positive territory before we can really say that we have a sustainable recovery in place – but at least now the signs are positive and heading in the right direction!

There’s a lot of support for small and medium enterprises (SMEs) coming through from Sensis at the moment. We’ve just launched a new ‘Small Business’ section on the Sensis corporate website. Here you’ll be able to find all the free resources Sensis produces for SMEs  in one convenient location. And we can also confirm that a new book specifically for SMEs focusing on sustainable business practices is in the making.

The ‘Small Business’ page is the new home to a range of popular resources Sensis produces for Australia’s SMEs, including the Small Business, Big Opportunity advertising and marketing guide; Sensis® research reports such as the quarterly Business Index, Consumer Report and annual e-Business Report and a summary of Sensis’ small business partnerships and a useful links page.

With all the free resources produced for SMEs now in one convenient location, smallbusiness.sensis.com.au has been concluded and traffic to that site is now redirected to the new ‘Small Business’ page.

As well the new page, following the great feedback received about the advertising and marketing guide Small Business, Big Opportunity, Sensis has decided to produce a new book exploring how SMEs can grow and prosper by implementing sustainable business practices.

Jon Dee

Environmental expert Jon Dee has partnered with Sensis to research and write the book, which will deliver easy to understand practical insights.

Jon co-founded Planet Ark with Pat Cash in 1991 and today is Founder and Chairman of the Australian advocacy organisation ‘Do Something!’ He is also the Environment Editor for Channel Nine’s nationally broadcast TODAY Show.

Jon has more than 25 years working on cause-related projects. Some of the highlights include co-producing ‘The World Against AIDS’ global broadcast which launched ‘World AIDS day’ in 1988; initiating and running ‘Rock Aid Armenia’ in 1989; co-founding Australia’s ‘National Tree Day’ with Olivia Newton-John which resulted in more than 12 million native trees and shrubs being planted… and that’s just to name a few!

Jon and Sensis have worked together before when Jon initiated the Sensis sponsored RecyclingNearYou.com.au. Working alongside Sensis’ ongoing commitment to supporting SMEs, the new book will be available to download or order at no cost from the new ‘Small Business’ page towards the end of the year. Keep an eye out on about.sensis.com.au for updates.

If you have any feedback about the new ‘Small Business’ page or any questions about the upcoming book, please contact Smallbusiness@sensis.com.au.

The latest Sensis® Consumer Report recorded the largest rise in consumer confidence in a single quarter that it has measured.  Report author Christena Singh tells us why this latest bit of good news is important for the Australian economy.

It is great to see the Sensis® Consumer Report recording the largest increase in consumer confidence since the survey started exactly five years ago. This quarter we saw consumer confidence increase by 18 percentage points to 39 per cent – the strongest level we have seen in 15 months.

To see such strong increases in both consumer and business confidence is heartening, because we are now seeing consistent, strong improvements in the sentiment that forms the heart of the Australian economy.

In fact, many of the indicators of the Australian economy improve, and the much heralded “green shoots” theories abound.  The latest Australian GDP figures were positive, we are not in technical recession, and a range of other statistical indicators are telling the same story.

But what I personally find interesting in the latest data is that consumers are not basing their confidence on the fact that the Australian economy is not in recession. In fact, only four per cent of Australians currently thought that the Australian economy was growing, despite what the national accounts might say.

At the grass roots of the Australia economy, both consumers and businesses are under no illusions about the current state of our economy. What they do agree on is that over the next year they believe think things will pick up.

This is particularly important, because businesses need confidence to invest in their businesses to produce growth and jobs in the future. And business confidence depends on strong consumer confidence – on businesses seeing consumers – customers – coming through their doors.

Consumers have told us they base their confidence most strongly on employment, and in particular at the moment, job security. Some 30 per cent of confident Australians told us they were confident because they had a secure job.  This compared to 21 per cent of worried Australians who told us they were worried because of unemployment.

So it is a vicious circle to some extent – businesses base their confidence on the demand of consumers, who in turn base their confidence on businesses employing them. So if both business and consumer confidence are moving up at the same time it bodes well for the Australian economy for the next year.

You can download a copy of the latest Sensis® Consumer Report here.

The latest Sensis® Business Index has recorded the largest rise in SME confidence in a single quarter since it started 16 years ago.  Report author Christena Singh tells us why the good news from small businesses is great news for the Australian economy.

I was at a conference earlier this year just about to present when the speaker before me, Peter Switzer, one of Australia’s most respected small business and financial commentators, put a slide up with a quote from me back in November 2007. It recounted how the Sensis® Business Index had just recorded the largest fall in business confidence for SMEs in a single quarter since the survey started more than 16 years ago.

I can remember the time well, the Australian economy was still looking to be in peak condition, Australia was heading into the last election and while the US economy was already in serious trouble, there was no serious talk that the global economic conditions would impact Australia.

The first significant indicator of economic downturn was picked up in the voices of small business, and this first steep downward movement in confidence heralded one of the most difficult times the Australian economy has experienced in recent history.

So it is great to announce the findings this quarter that the Sensis® Business Index has recorded the largest increase in business confidence in a single quarter.  It is great because this is a much needed boost in confidence for Australia’s small businesses, coming from the lowest levels of business confidence on record.

This quarter the Sensis® Business Index recorded a 17 percentage point increase in business confidence, which rose from 13 per cent to 30 per cent. Increases were also recorded in sales, employment, profitability and capital expenditure.

And while the strong improvements are very welcome, it is important to remember that all of these indicators remain in negative territory overall, that is more businesses experienced falls than increases.

There is a long way to go to see these indicators return to healthy positive territory. But the improvements are significant and hopefully signify a sustained rebound in economic conditions, with Australia’s small businesses leading the way.

Small businesses were the first to tell us of economic downturn – small businesses are now telling us that the economy is starting to turn around.

Today, Sensis CEO Bruce Akhurst spoke at an American Chamber of Commerce luncheon on what he describes as The Age of Engagement.

Digital media isn’t merely cannibalising traditional media. It’s giving marketers new tools to work with and the ability to build deep, valuable relationships with customers.

The first presentation in this series looks at how local search is helping marketers support consumer purchase decisions in exciting new ways. And how the next generation of local search is being driven by the mobile phone.

The second presentation looks at social media. Be sure to check back as this presentation will be uploaded shortly.

Times might be tough in the media sector today, but there’s a lot about the future to be excited about.

This week, Bruce Akhurst, the CEO of Sensis, will be sharing his thoughts on the future in a two-part presentation: The Age of Engagement.

The first part of his speech – covering the rise of local search – will be delivered at an American Chamber of Commerce luncheon in Sydney this Thursday, 23 April.

And, in a departure from the norm, part two of this presentation, which covers the rise of social media will be delivered using – what else – social media!

So, pop back to the Speaking Sensis blog this Friday, 24 April. You’ll be able to view both of Bruce’s speeches.

My last couple of entries have looked back on 2008.’s

Now it’s time to turn from past to future, with eight trends for 2009.

It’s a testing time for the media sector today. But despite the impacts of the economic downturn, there’s a lot to be optimistic about. The key will be focusing on customer needs and listening to what your customers are saying to you.

Which is why we’ve dubbed 2009 ‘the year of the customer’.

Have a read and tell us what you think. Do you agree… or not? What do you think this year’s hot spots will be and why?

Mobiles make mainstream

Mobile advertising has been promising big things for years. Now it’s delivering and, this year, mobile advertising will make the mainstream.

I could spend hours talking about the unique capabilities mobiles offer marketers (and I will do soon), but, for now, let’s talk numbers.

From January 08 to January 09, traffic to Sensis Mobile sites grew on average 12% A MONTH . Mobile now represents 8% of Sensis’ total Australian digital traffic – and it’s growing fast(1) .

And, according to MediaSmart (Sensis’ digital display advertising business), the uptake of mobile display campaigns is currently running at almost three times the rate it did last year.

Think mobile advertising is a way off? Think again.

Integration

The marketing challenges created by fragmentation (people spreading their media consumption) has been a hot topic for years.

In 2009, we’ll turn our attention from the problem to the solution – integration, multi-channel, cross-platform or whatever you choose to call it.

Increasingly, media companies will bundle different media into multi-brand, multi-product networks. This way, advertisers can access a larger base of consumers with a single purchase and manage their media strategy in a co-ordinated way.

Sensis has been executing on this for a while through our Yellow Pages® print, online, voice, mobile and sat nav network. We”re also seeing strong traction for cross platform advertising in the activities of a number of major media players, including the Mitchell Communication Group’’s cross-platform media negotiations, which received considerable media coverage late last year.

Expect integrated campaigns to steadily become the norm.

Syndication

Okay. So, major media providers are increasingly enabling cross-platform advertising. But what about the web itself? After all, it isn’t just one platform, it’s millions. About 108 million at best guess(2). How can you possibly reach out across such a diverse landscape?

In the past, going online meant having a web site and not much more. This year will see more marketers stepping outside their web sites to create syndicated content that windows that reach out right across the web.

Today, advertisers are increasingly using blog, video and even Powerpoint networks like LiveJournal, Wordpress, YouTube and Slideshare to generate and deliver content. They’re using a blinding array of sharing and syndication tools to spread that content everywhere. And the whole lot is search engine optimised, including their Yellow Pages® and White Pages® listings.

The end result is an easy to manage content store streaming content out to a whole mass of proprietary and public sites. You’re heavily increasing potential reach and enabling a whole range of different opportunities, like the ability for people to discuss, share or subscribe to your content.

No doubt about it, there’s more work in this than the old model. But the spin-offs are potentially huge, which is why you‘ll see far more syndication occurring in the future.

Social Media

While we’re on the subject, there’s no doubt that social media is the hot topic right now.

And it’s likely to stay that way. YouTube and Facebook usage continues to grow at almost obscene rates. According to Roy Morgan, over 5.5m Australians used these two sites every month in the September quarter last year – up 1.8m on the previous year(3).

Meanwhile, Coca Cola’s Facebook page now has over 3 million fans !(4)

So social media is a big potential opportunity. But how do you unlock it?

The exciting thing about social media this year won’t just be its growth. It will be the fact that marketers will work out how to use it.

Engagement versus eyeballs

But, to do that, there’ll need to be a major (and very welcome) shift in how we perceive the role of marketing.

Will marketers get value out of social media by using it as another way of shoving brands in people’s faces?

No. They’ll drive value by using social (and other) media to genuinely engage people in conversations and learn from their views. They’ll use media as a channel to provide service – not just taglines – to consumers. They’ll begin sharing, rather than just promoting, their brands and they’ll use media to go right to the source: seeking consumer views on everything from product development to customer service to community relations.

Make no mistake. This is a quantum shift. As a result, brand awareness will start giving way to brand ownership and the role marketing plays in the business will change forever.

Accountability

Here’s a disturbing irony. While digital media is touted as highly accountable, a lack of accountability is still seen as the greatest roadblock by online advertisers. For example, a 2007 McKinsey survey(5) found that over 50% of digital advertisers nominated “insufficient metrics to measure impact” as a barrier to adoption.

The IAB is currently undertaking a much welcomed revision of online measurement guidelines and industry standardisation.

Let’s hope the many issues confronting online measurement can be resolved, including the ability to align online metrics with other media and the ability to measure the rapidly growing mobile landscape in a standardised way.

Of course, accountability doesn’t apply solely to online. Traditional media need to become more transparent about ROI as well. One example of how Sensis is following through with this is our Yellow Pages® metered ads. Unique phone numbers are used on Yellow Pages® ads and then monitored. In this way, the advertiser can see exactly how many calls their ad is generating.

Advertisers have been demanding accountability for some time now. Over the next year, you’ll start to see media providers – both online and offline – start to really deliver it.

Tough times

So there’s a lot of exciting things going on today. But you can’t realistically talk about 2009 without mentioning the global downturn and it’s impact on media.

In Australia, the Sensis Business Index and Sensis Consumer Report are reflecting global trends by finding the lowest levels of consumer and business confidence in their history.

This declining confidence has had a sobering impact on advertising and media.

Almost every major Australian media business is staring at falling revenue, although it’s pleasing for us that Sensis has been a notable exception.

And even the major dot.com high flyers are experiencing either curbed growth or revenue declines.

There is a feeling that things will improve for the industry in 2010, although recent downward revisions in forecasts from various analysts suggest we may not yet be at the bottom of this cycle.

The year of the customer

And this leads me to the final trend. 2009 will be the year of the customer.

Over the last few years, the industry has been beset by discussions about systemic changes. Is traditional giving way to digital? Are advertising business models changing?

These discussions, while vital, have tended to divert the industry’s attention away from the most fundamental and vital question of all – are we delivering what our customers (both consumers and advertisers) want?

Whether they’re traditional, digital or both, the companies that survive and thrive through this downturn will all have one thing in common.

They’ll be focused unerringly on the needs of their customers.

1: Omniture. Visits to Sensis sites. January 2008 to January 2009.
2: www.domaintools.com
3: Roy Morgan Single Source Australia. October 2007 to September 2008. Base Australians 14+.
4: Facebook
5: How Companies are Marketing Online – A McKinsey Global Survey. September 2007.