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Ten ways podcasts add value to your brand marketing mix

by Blog

Podcasts offer numerous marketing benefits, making them a valuable tool for businesses looking to engage with audiences in a more personal and long-lasting way. Here are some of the key marketing advantages:

1. Targeted Audience Engagement

Podcasts allow marketers to reach a highly engaged and specific audience. Since people choose to listen based on their interests, podcasts offer an opportunity to target niche markets more effectively than many other media formats. This focused engagement helps brands connect with listeners who are genuinely interested in the content, leading to better audience retention and loyalty.

2. Brand Authority and Thought Leadership

Hosting or sponsoring a podcast can help establish your brand as a thought leader in your industry. By consistently sharing valuable insights, stories, and expert interviews, businesses can position themselves as authorities. This not only builds trust but also enhances the credibility of the brand, which can lead to increased customer loyalty and conversion.

3. Increased Reach and Accessibility

Podcasts are accessible on multiple platforms like Spotify, Apple Podcasts, Google Podcasts, and more. This broad distribution allows businesses to reach listeners across different devices, markets, and time zones, expanding their audience. Furthermore, the flexibility of podcasts lets users listen on their own schedule—during commutes, workouts, or leisure time—which enhances consumption rates.

4. Enhanced Storytelling and Brand Personality

Podcasts offer an ideal platform for storytelling, allowing brands to present more nuanced and emotionally engaging narratives. The conversational format makes it easier to share complex ideas in a relatable and engaging manner. This helps humanize the brand, fostering deeper emotional connections with listeners. Through consistent tone and voice, podcasts can also convey the brand’s personality in ways that are difficult to achieve with traditional written content.

5. Low-Cost Content Creation

Compared to other forms of media, podcast production is relatively cost-effective. Once the equipment is in place, the ongoing production costs are minimal. For businesses, this makes it a highly scalable content marketing strategy. Podcasts can be repurposed as blog posts, video snippets, and social media content, allowing for multiple uses across channels without significant additional investment.

6. Longer Engagement Time

Podcasts typically engage listeners for longer periods compared to blog posts or social media updates. A podcast episode can last anywhere from 20 minutes to over an hour, giving brands extended time to engage their audience and convey more detailed information. This longer engagement time leads to stronger brand recall and more meaningful connections.

7. SEO Benefits

Though not directly indexed by search engines, podcasts can boost SEO when accompanied by well-optimized show notes, transcriptions, and blog posts. These written components can help your podcast episodes rank for specific keywords, driving organic traffic to your website. Additionally, podcasts are often shared on social media and embedded on other platforms, generating backlinks that further improve your SEO.

8. Collaborations and Partnerships

Podcasts offer a platform for collaborating with industry experts, influencers, and other brands. These partnerships can help expand your reach by exposing your content to new audiences. Cross-promotion through guest interviews and podcast sponsorships can further boost brand awareness and credibility.

9. Improved Customer Relationships

Podcasts help brands foster a sense of community by engaging listeners with valuable, consistent content. The personal and conversational nature of podcasts can strengthen the relationship between the brand and its audience, leading to higher customer loyalty and advocacy. Regularly listening to a podcast can make customers feel more connected to the brand, building long-term relationships that go beyond transactional interactions.

10. Monetisation Potential

Once your podcast gains traction, it can become a revenue stream in its own right through sponsorships, affiliate marketing, and product promotions. Sponsors are willing to invest in podcasts that have a loyal and engaged audience, offering an additional income channel while simultaneously promoting the sponsor’s products or services.

Conclusion

Podcasts offer a unique and powerful marketing tool that enhances brand authority, audience engagement, and storytelling. They provide targeted access to niche markets, foster long-term customer relationships, and are cost-effective to produce. As the popularity of podcasts continues to rise, they present an excellent opportunity for businesses to expand their digital marketing strategy and reach new audiences.

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Does AI Generated Content Impact Your SEO Efforts?

by Blog

AI-generated content is revolutionising the way content is generated and will have a significant impact on the way consumers find and understand your products.

After two decades of carefully refining content production strategies to optimise its findability, marketers must now get their head around how AI-generated content will impact all their learnings.

Producing  the mountains of SEO content required to feed our MBA News and Fixed Income News Australia publishing ventures gives us a strong incentive to get our heads around the issue very quickly.From our initial experimentation with AI generated SEO content it is clear there are a number of positives and negatives.

Positive Impacts on SEO

  1. Increased Content Production: AI tools can produce a large volume of content quickly, which can help websites maintain a consistent publishing schedule. Regularly updated content is an important factor for search engines like Google, which often favor fresh content when ranking pages.
  2. Keyword Optimisation: AI tools can assist in optimizing content with relevant keywords, improving the chances of appearing in search results. By analysing keyword trends and incorporating them naturally, AI can help create content that is more likely to rank well for specific search queries.
  3. Content Personalization: AI can create personalised content based on user data, making it more engaging and relevant to specific audiences. Personalised content can improve user experience, increase time spent on the site, and reduce bounce rates—all factors that positively influence SEO.
  4. Enhanced Topic Research: AI can analyse large amounts of data to identify trending topics and content gaps, helping content creators develop articles that align with what users are currently searching for. This strategic approach to content creation can result in better search engine rankings.
  5. Improved User Experience: AI can help create content that is more engaging and better formatted, which improves user experience. Google’s algorithms take user experience into account, so content that is well-organised, easy to read, and provides value is more likely to perform well in search rankings.

Negative Impacts on SEO

  1. Quality Concerns: AI-generated content can sometimes be repetitive, lack depth, or be of lower quality compared to human-written content. Google’s algorithms are designed to reward high-quality, original content, and may penalise sites that use low-quality or overly generic AI content.
  2. Risk of Duplicate Content: AI tools can inadvertently produce content that is too similar to existing content on the web, leading to duplicate content issues. Search engines penalise duplicate content because it provides little value to users and can confuse indexing algorithms.
  3. Over-Optimisation: AI tools may sometimes over-optimise content by stuffing keywords unnaturally, which can result in penalties from search engines. Keyword stuffing is against Google’s guidelines and can lead to lower rankings or removal from search results altogether.
  4. Lack of E-E-A-T: Google’s Search Quality Rater Guidelines emphasise Experience, Expertise, Authoritativeness, and Trustworthiness (E-E-A-T). AI-generated content may lack these qualities, particularly in niche or highly specialised topics, making it less credible and less likely to rank well in search engines.
  5. Algorithm Updates and Penalties: Search engines continuously update their algorithms to better understand and rank content. Recent updates like Google’s Helpful Content Update specifically target low-quality, unhelpful content, which can negatively impact sites relying heavily on AI-generated material that doesn’t meet these standards.

Best Practices for Using AI-Generated Content

To mitigate the risks and maximise the benefits of using AI-generated content for SEO, consider the following best practices:

  1. Human Oversight: Always review and edit AI-generated content to ensure quality, relevance, and compliance with SEO best practices. Human oversight is crucial to avoid errors and maintain content integrity.
  2. Content Uniqueness: Use plagiarism checkers to ensure the content is unique and does not resemble other content on the web. This reduces the risk of duplicate content penalties.
  3. Focus on Value: Make sure the content provides value to readers by answering their questions, solving problems, or providing new insights. Avoid creating content solely to rank for keywords without considering user intent and value.
  4. Avoid Keyword Stuffing: Ensure that keywords are used naturally and relevantly within the content. Over-optimisation can lead to penalties and reduce the content’s effectiveness.
  5. Maintain E-E-A-T Standards: Incorporate author bios, credentials, and citations from authoritative sources to bolster the content’s credibility. This approach helps build trust and aligns with Google’s emphasis on E-E-A-T.

AI-generated content can be a powerful tool for enhancing SEO when used correctly. It can streamline content creation, optimise keyword usage, and improve user engagement. However, over-reliance on AI without proper human oversight can lead to quality issues, duplicate content, and penalties from search engines. To effectively leverage AI for SEO, it’s crucial to maintain a balance between automation and human input, ensuring that content remains valuable, unique, and aligned with search engine guidelines.

offensive and defensive corprate comms

Offense or Defense? Setting Your External Communications Posture

by Client News

Developing both offensive and defensive corporate communications strategies, and having a strong understanding when to use them, is crucial to effectively managing and shaping an organisation’s reputation, brand perception, and stakeholder relationships.

The different strategies have vastly different objectives and tactics and are designed to address proactive opportunities and reactive challenges, ensuring your organisation maintains a favorable public image while also being prepared to mitigate potential crises.

Offensive Communication Strategy

An offensive posture best is best described as a proactive engagement, and aims to enhance the company’s reputation, promote its products or services, and engage positively with stakeholders. The primary goals are to build brand equity, foster customer loyalty, and position the organisation as a leader in its industry. There are a range of different offensive strategies and tactics that can be implemented.

1. Brand Building:

  • Content Marketing: Creating valuable, relevant, and consistent content to attract and engage a clearly defined audience. This includes blogs, videos, infographics, and social media posts that highlight the company’s expertise and values.
  • Public Relations Campaigns: Engaging with the media to secure positive coverage in reputable publications. This involves press releases, media pitches, and events that showcase company achievements, innovations, and thought leadership.
  • Social Media Engagement: Actively participating in social media platforms to connect with customers and influencers. This strategy involves regular posts, responding to comments, and leveraging trending topics to enhance visibility and engagement.

2. Thought Leadership:

  • Industry Conferences and Speaking Engagements: Positioning company executives as industry leaders through keynote speeches, panel discussions, and participation in industry events. This builds credibility and establishes the company as an authority in its field.
  • Research and White Papers: Publishing in-depth research and white papers on relevant industry topics. This demonstrates the company’s expertise and contributes to the broader industry knowledge base.

3. Customer Engagement:

  • Customer Testimonials and Case Studies: Showcasing success stories and positive experiences from existing customers. These testimonials can be used in marketing materials, on the company website, and in sales presentations.
  • Loyalty Programs and Community Building: Developing programs that reward loyal customers and create a sense of community around the brand. This fosters long-term relationships and encourages word-of-mouth promotion.

Defensive Communication Strategy

A defensive communication strategy is reactive, focusing on protecting the company’s reputation during crises or negative situations. The primary goals are to minimize damage, maintain trust, and resolve issues effectively.

1. Crisis Management:

  • Crisis Communication Plan: Developing a comprehensive plan that outlines roles, responsibilities, and protocols for addressing various types of crises. This includes identifying potential risks, preparing key messages, and training spokespersons.
  • Rapid Response: Acting quickly to address crises as they arise. This involves issuing timely statements, holding press conferences, and using social media to communicate updates and reassure stakeholders.

2. Reputation Management:

  • Monitoring and Analytics: Continuously monitoring media coverage, social media mentions, and public sentiment. Tools like Google Alerts, social listening platforms, and media monitoring services help identify potential issues early.
  • Addressing Negative Publicity: Responding to negative reviews, articles, or social media posts with factual, respectful, and transparent communications. This can involve direct responses, correcting misinformation, and engaging in constructive dialogue.

3. Legal and Ethical Considerations:

  • Compliance and Transparency: Ensuring all communications comply with legal requirements and ethical standards. This includes honest and transparent communication about company practices, policies, and any issues that arise.
  • Engaging with Regulators and Authorities: Maintaining open lines of communication with regulatory bodies and government authorities. This proactive engagement helps navigate regulatory challenges and demonstrates the company’s commitment to compliance.

Integration of Offensive and Defensive Strategies

Effective communication strategies often blend offensive and defensive elements, creating a comprehensive approach to managing the company’s public image. For instance, a proactive content marketing campaign (offensive) can be complemented by a strong crisis communication plan (defensive), ensuring the company is prepared to handle both opportunities and challenges.

In conclusion, balancing offensive and defensive communication strategies enables organizations to proactively enhance their reputation while being prepared to effectively manage and mitigate risks. This comprehensive approach ensures sustained positive engagement with stakeholders and resilience in the face of challenges.

bridging in media interview

The One Media Interview Technique Every Executive Should Know

by Blog

Dealing with the media can be an enjoyable and valuable experience for many executives. It is a great offensive strategy for getting your company’s story out and building your personal profile.

Dealing with the media from a defence perspective, either during a full blown crisis or a simple run-of-the-mill incident, is not always as ‘enjoyable’, and the slightest mistake can imperil your good name and your company’s future.

One of the techniques we teach during our media training workshops and ask every executive to be familiar with is bridging.

Bridging is useful in any situation where it is important for you to explain clearly to the counterpart what your position is on a subject – whether in business or private life.

What is Bridging?

Bridging is a technique used in media training to help speakers stay on message during interviews or press conferences. It involves acknowledging a reporter’s question and then “bridging” or steering the conversation back to the key points or messages that the speaker wants to communicate. This technique helps in maintaining control of the narrative and ensuring that the most important information gets across.

Here are some key aspects of the bridging technique:

  1. Acknowledge the Question: Start by addressing the question directly to show that you’re listening and understand the query.
  2. Bridge to Your Message: Use transitional phrases to shift the focus from the question to your key message. Common bridging phrases include:
    • “While ___________ is important, it’s also important to remember that…”
    • “There are a lot of questions around this issue… but it all boils down to this.”
    • “And that reminds me…”
    • “Before we leave this subject, I need to add…”
    • “I don’t want to get bogged down in the detail.. If we look at the big picture..”
    • “I don’t want to comment on speculation.. What we are focused on is..”
    • “Many of these issues are still up for discussion.. What we are focussed on is…”
    • “There is still plenty of work to be done on that.. What I can tell you is..”
    • “What’s important to remember is…”
    • “The key point here is…”
    • “That’s an interesting question, but let me tell you about…”
    • “What we’re focusing on is…”
    • “I think it’s important to note…”
  3. Deliver Your Message: Clearly and concisely state the information you want to convey.
  4. Practice: Like any skill, effective bridging requires practice to ensure smooth and natural transitions.

The most common mistake – and the most serious mistake – is to not acknowledge the question of the journalist. This acknowledgement of the question requires a good deal of precision. Acknowledgement shows that you take the question seriously, and that you admit that the question is legitimate. If you do not acknowledge the question, you run the highest risk in media interviews, namely that the interview will be no longer about the subject of the interview – but about you.

Example of Bridging in an Interview

Reporter: “Can you explain why the company’s profits dropped last quarter?”

You: “While it’s true that our profits were lower last quarter due to some short-term challenges, what’s important to remember is that we are investing heavily in new technologies that will drive long-term growth. For example, our new product line launching next month is expected to significantly enhance our market position.”

By using the bridging technique, you acknowledge the question about the profits but steer the conversation toward a positive future outlook, focusing on the investments and upcoming product launch.

How The Pandemic Has Changed How We Consume Our Media – And Why It Matters to Getting Great Results

by Blog

How people consume media has changed since the onset of the pandemic and it’s a complex battleground out there for content creators and advertisers to reach their target audience.

Introduced factors like increased time at home and lengthy lockdowns have significantly influenced how, when and what people listen to, watch, read or play.

All the research shows people are streaming more content on-demand. They are consuming more digital news.Fewer people are going to the cinema. Less people are listening to the radio on the way to work.

To understand whether the industry needs to shift the way we think about content production, distribution and consumption, lit’s important to understand the different types of content consumption.

    • Routine consumption  – content consumed habitually
    • Spontaneous consumption – content consumed usually while filling time and requiring low concentration.
    • Planned consumption – at least 30 minutes is set aside for the consumption of specific content

The amount and type of content that people consume spontaneously are emerging as a key point to consider for the industry.

Spontaneous consumption describes things like short-form video content on YouTube, scrolling through Instagram, or turning the pages of a magazine on the table at work.

Research by PWC shows spontaneous media consumption is beginning to dominate the landscape and some of the numbers are extraordinary.

Spontaneous consumption accounts for 66% of the video content on social media, 44% of the content of streaming platforms, 62% of content read on the internet, 56% of digital media listened to on devices, and 52% of video games on a mobile device.

The amount of spontaneous consumption means led PWS to make the case that reaching the core audience may be getting more challenging as the opportunity to reach them with a message has to compete with a more fragmented, and increasingly non-advertising supported, range of choices.

Gaining a share of attention in this space requires us to look at a multilayered planning approach that balances the critical nature of reach, with the need to obtain frequency across a multitude of channels.

At RGC, we are keenly aware of changing consumer behaviours and are capable of producing a range of content that gets in front of people, no matter where they are.

Our in-house production studio can deliver high-quality webinars and podcasts to reach audiences when they go to watch or listen to media.

We can create websites and implement digital marketing strategies with SEO that engage audiences when they’re Googling.

And we produce compelling content for traditional and digital media to get in front of audiences online and in print.

The fight to gain and maintain attention has become even more complex since the pandemic and understanding where and how our audiences are consuming media is crucial to great results.

Young woman traider working at night modern office.Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background. Double exposure

Using ‘Branded Data’ To Grow Your Media Profile And Feed Your Content Machine

by Blog

Every business now has access to mountains of data about their customers, their products and their industry. Mining that data and using it to create exciting and engaging content has become one of the most important ways to supercharge your media outreach strategy and build your reputation as an industry leader.

Branded data is any form or data you use to share with an audience to demonstrate your understanding of your customers’ needs, industry trends or product effectiveness. It can include almost any type of quantitative or qualitative data like customer surveys, market reports and product performance information.

At RGC, we work closely with brands like CartonCloud to develop branded data opportunities like the CartonCloud Logistics Index and real estate services group Oliver Hume on their Quarterly Market Insights report. On a larger scale, you can look at the success of things like the ANZ Job Ads survey or NAB’s Monthly Business Survey to see the value of branded data as a brand-building exercise.

Create News Flow

Increasing media consolidation, networking and the ‘pay to play’ attitude of niche publishers makes building a media profile harder than ever. Stories and ideas that were newsworthy five or ten years ago now routinely end up on the digital spike in newsrooms. As a result, identifying and executing earned media opportunities with a consistent cut through is the greatest challenge of any PR campaign.

The greatest challenge of maintaining an ongoing earned media campaign for many brands is generating a consistent flow of newsworthy stories.

Looking inwards at your proprietary data and compiling it into a tool for media outreach is not just a great way to fill holes in your PR plan but can be the foundation of your entire efforts.

Feed The Machine

The CartonCloud Logistics Index is a great example of using survey data to build effective branded data.

Even through the relatively narrow lens of earned media, branded data, done well, has an extraordinary ability to grow brand awareness and affinity. When you couple its earned media potential with other channels, the return on investment in quality branded data is well worth the extra effort required to do it well.

Effective marketing strategies have a voracious need for content. Your newsletters, social platforms, blogs, and website require a continuous stream of new content to keep them fresh and engaging. Breaking your data down to bite-size pieces can turn one piece of content into many. Turning a detailed report with seven data points into seven (or 14) different social media posts doesn’t require too much effort.

Go Beyond Surveys

When companies consider data as an earned media tool, most don’t get past a customer survey. These surveys are great for targeting specific audiences and investigating particular themes, but they can also be expensive, particularly for brands with modest marketing budgets.

It is well worth mining your proprietary data to create media outreach opportunities. Proprietary data is the information you already have on hand to tell a story about your business or industry. Australia’s largest real estate listing sites realestate.com.au and domain.com.au, are great examples of using their proprietary data to create valuable insights for their audiences.

Proprietary data is powerful because only your company has access to it, so insights drawn from it are inherently unique. Moreover, there’s also no additional investment required to collect this data because it’s already on hand.

That said, engineers don’t necessarily design their platforms for the purposes of data collection for the media. As a result, it can sometimes be challenging to pull standardised proprietary data that supports the story your brand wants to tell. This data can also be limited by the scope of a company’s platform.

While there can be challenges, crafting a story from proprietary data remains an excellent PR tool. The use of data in media relations is becoming more common, so it’s important that data is positioned correctly to the media and provides real value to journalists to stand out.

There are four key steps in generating media coverage that leverages proprietary data:

  1. Imagine your perfect headline. Start where you want to finish and work backwards from a great headline. Beginning the branded content process with the result in mind makes it easier to sift through data to uncover relevant insights that can tell that story.
  2. Understand your audience’s needs. Once you’ve identified the significant conversations in your industry, you can evaluate where your company’s data can support reporting on these trends and provide a new perspective or additional context.
  3. Mine and simplify your data. Data can be complex, and breaking it down into easy to understand terms is essential to amplifying its value. A great way to make data more understandable is to present it visually, so infographics, tables and graphs can be valuable tools.
  4. Understand your target media’s needs. Then, once you’ve built a story supported by your data, identify media contacts who would find these insights interesting and relevant to their reporting and determine your outreach plan.

Of course, the key to using your branded data, like all media outreach, is ensuring you are telling stories or imparting insights that are interesting to your audience. Creating or mining data is a waste of time unless you can package it into “news you can use”. This can only be achieved if you understand your audience and the problems you need to solve for them.

what-is-public-relations

What’s the difference between public relations and publicity? Think planes and roads

by Blog

For many people there is little distinction between public relations and publicity and the terms can be easily interchanged. The fact is they are vastly differently fields that require their own unique skills developed over many years.

The easiest way to draw the distinction is to think of roads and planes. When you want a road built you call a civil engineer. When you want a plane built you call an aeronautical engineer (or two). They might both be engineers but you wouldn’t get the civil guy to build a plane or the aeronautical girl to build a road. The same should go for your communications.

What is Public Relations?

Public Relations has never been easily defined. For some it encompasses anything that involves talking to people that aren’t customers. For others it’s organising parties and inviting celebrities along.

I have been using the same definition for many years*.

PR is the strategic crafting of complex stories and interactions with a range of publics. It’s the focused examination of your interactions and tactics and products and pricing that, when combined, determine what and how people ‘talk’ about you. It addresses issues and it takes time and resources.

Under this definition, the process of public relations is complex, time-consuming and more often than not, expensive. It involves formative research, strategy development, tactical thought and ongoing evaluation and program re-setting.

The goal of public relations is to complete this sentence with as much detail as possible.

 In order to (insert objective) we will (define a strategy) by (list creative tactics that solve the problem)

 You could end up with something like:

 “In order to drive preference with buyers during the consideration phase, we will activate the online voice of existing customers by creating a game that requires multiple reviews on Facebook and Yelp and that focuses on the reliability of the product.”

A good public relations person is strategic, thoughtful and research-focused. They can stand back and look at the big picture and break it down into small actions that get you to your goal.

 publicityvpr

What is Publicity?

Publicity is another beast altogether. Generally, when smaller companies say they want to do some public relations, they really mean they want some publicity. They want their name in the paper, on television and on the radio. They want a profile and they don’t want to spend millions of dollars on buying advertising.

Publicity is getting unpaid media (radio, TV, press) to pay attention, write you up, endorse your products, point to you, run a picture, make a commotion. Good publicity is always good for your brand.

From a marketing perspective, publicity is one component of promotion which is one component of marketing. Other elements of the promotional mix can include advertising, sales promotion, direct marketing and personal selling.

Good publicity does not necessarily require a lot of strategic thought. It is about identifying good stories and pushing them out to the media on a consistent basis. Publicity shouldn’t get bogged down in the minutiae of messaging, it shouldn’t be over analysed. You don’t get to craft a ‘perception’ in the media, the goal is simple brand awareness.

The best publicists always have an intimate understanding of the media. Their time is best spent on the phone, talking to journalists, looking for opportunities and chasing them relentlessly.

So next time you have a communications issue be clear on what you want and make sure you get the right person. The last thing you need is to take off in a plane, designed by an expert road builder.

* I am unsure where this is originated and happy to provide reference links if anybody can find the original source.

 

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Media Release – Economic Optimism Turbo-Charges Australia’s Logistics Industry

by Client News

THE FOLLOWING MEDIA RELEASE WAS ISSUED ON BEHALF OF CARTONCLOUD IN JULY 2021.

Massive optimism in the logistics industry is fuelling a jobs boom with businesses planning to hire new staff to meet demand, a sentiment snapshot has revealed.

The inaugural CartonCloud Logistics Index took the pulse of warehouse and transport businesses in the first quarter of 2021 with 50 respondents providing feedback on business operating conditions, workforce and hiring outlook, growth, opportunities and challenges.

CartonCloud founder Vincent Fletcher (pictured below) said the results of the index pointed towards a healthy industry emerging from the pandemic disruption with significant confidence for the future.

“Optimism is high in the current economic climate and businesses are looking to capture growth opportunities in the months ahead,” Mr Fletcher said.

“The confidence is translating into the creation of new jobs in the industry, particularly for operations involved in warehousing.

“The numbers speak for themselves: 90 per cent of the businesses surveyed believe they are likely or very likely to increase their staff numbers.

“Increasing the workforce isn’t just positive for our industry but increasing employment opportunities and creating new jobs will benefit families and communities across Australia.

“Job creation is a powerful indication that logistics businesses in Australia are growing and they are in secure financial positions to bring on new staff.”

Mr Fletcher said it was satisfying to see more than 80% of businesses expecting to perform well or very well over the next six months, which was a sign of a very strong industry.

“Businesses are looking to grow by further increasing demand for logistics services, expanding the range of services they offer and making additional investments in business-to-consumer or e-commerce capabilities,” he said.

“Another opportunity to drive growth is the adoption of more technology across both warehouse and transport operations to drive efficiencies and unlock capacity.

“While 55% of respondents believe their business is embracing technology adoption well or very well, there’s clearly room for improvement in many warehouse and transport operations.”

Despite surging optimism and hiring intentions, the industry wasn’t without its challenges.

“Some businesses are scrambling to meet the high demand and customer expectations,” Mr Fletcher said.

“Hiring and upskilling the workforce so businesses can meet demand and customer expectations is a key challenge for both warehouse and transport businesses.

“We found it interesting that a significant number of senior management and business owner participants cited their own lack of digital vision and support as a key inhibitor in their business’s adoption of technology.

“Workforce knowledge and skill was also identified as a key barrier in the use of technology.”

STATISTIC SNAPSHOT

What is your view of the current economic climate for your business?

A significant 68% of respondents believed the current economic climate for their business was either positive or very positive. This is in stark contrast to only 5% of respondents experiencing a poor economic outlook. The positive attitudes to economic conditions are a strong sign businesses are confident and are experiencing success in their operations. It’s important to note 27% of respondents reported a neutral view of their economic climate and future events may tip some of them into the poor or positive category.

How do you expect your business to perform in the next six months?

An overwhelming 83% of businesses expect to perform well or very well over the next six months. Less than 3% of participants expected their business to perform poorly, which is a sign of a very healthy industry outlook.

How would you rate the likelihood that your business will bring on additional staff within the next six months?

The positive economic and performance outlook is encouraging with 65% of participants indicating they believe their business is likely to bring on additional staff over the next six months. Likewise, 25% said they were very likely to increase their staff numbers.

Which of the following activities, if any, are you planning in the next 12 months in order to drive revenue growth?

More than 50% of participants believe their businesses will also tap into e-commerce/B2C fulfilment, and require an expansion in the range of services in the coming 12 months.

A smaller segment (15) saw automation and robotics as their primary revenue growth mechanisms for the coming months.

What will be the biggest challenges facing your business in the next 12 months?

Increasing operating costs were the main challenge faced by most (50%) businesses followed by driver and workforce shortages (43%). Inability to balance demand for services and capacity rounded out the top three.

60% of transport companies expect driver and workforce shortages to be the biggest challenge facing their business in the next 12 months.

ENDS

Over the Wire

Over the Wire (ASX: OTW) Up 35% As Solution And Platform Investments Drive Growth

by Client News

THIS IS AN EDITED EXTRACT OF THE FULL-YEAR RESULTS ANNOUNCEMENT FOR OVER THE WIRE HOLDINGS. FOR THE FULL RESULTS PLEASE VISIT THE ASX.

Telecommunications, cloud and IT solutions provider Over the Wire Holdings Limited (ASX: OTW) is pleased to announce it has delivered another year of strong growth in recurring revenues with the company beginning to experience the full benefit of recent investments across its integrated solution platform.

Key highlights from the year include:

  • Becoming a Tier 1 voice provider following the completion of a multi-year Carrier Interconnect project
  • Growing recurring revenue by 38% to $103.2 million and delivering strong positive operating cashflows
  • A customer retention rate of 97.8%
  • Completion of the Zintel, Fonebox and Digital Sense acquisitions
  • Implementation of new Cloud availability zones in Perth and Adelaide
  • Increased international capacity and partnerships
  • Commencement of investment program to significantly upgrade the company’s core network (SuperCore)

Over the Wire Managing Director Michael Omeros said the achievements of the last financial year were important for the long-term future of Over the Wire and the growth of sustainable earnings.

“The completion of the carrier interconnect project and the completion of the Zintel, Fonebox and Digital Sense acquisitions provides us with a strong platform to lock in a variety of new, recurring revenue streams,” he said.

“We are already feeling the impact of these investments with second-half organic recurring revenue up 7% on the first half and a strong pipeline of new contracts and work.”

“The current financial year has started well and in line with expectations and we remain confident of delivering on our target of 15% growth in organic recurring revenue.”

Mr Omeros said the company’s Cloud. Connect. Collaborate. solution offering would continue to deliver positive outcomes for clients and help support future revenue growth.

“With the completion of the Carrier Interconnect project, we now have all the elements of a comprehensive, fully integrated platform that simplifies technology and empowers business,” he said.

Financial Results

Throughout the year, Over the Wire continued to focus on building its recurring revenue, with total recurring revenue growing 38% to $103.2 million. This component of revenue now represents 92% of overall revenue, up from 85% in FY20.

EBITDA for the year was $23.5 million (FY20: $17.4 million) with EBITDA margin improving from 20% in the previous year to 21%. The company also reported the continued strong conversion of EBITDA to cash with net cash from operating activities in the year of $24.5 million, up 111% from $11.6 million in the previous year. At the end of the year, the company has $16.7 million cash on hand.

The Board has declared a final dividend for 30 June 2021, of 2.25 cents per share fully franked, taking the full-year payout to 4.0 cents per share, up from 3.75 cents per share in the previous year.

Outlook

During FY21, OTW completed its transition to becoming a Tier 1 voice carrier. Completion of the platform means Over the Wire joins an exclusive group of Tier 1 carriers in Australia that can now offer full-service voice capabilities. Other Tier 1 carriers include Telstra, Optus, TPG, MyNetFone and Vocus.

Mr Omeros said completion of the project was a significant milestone in the history of the company and, combined with a range of other solution and platform improvements, had laid the foundation for a new phase of growth.

“As a Tier 1 voice carrier we will be far less reliant on third-party providers and unencumbered by legacy technology which will deliver instant savings and about $2 million in additional earnings each year,” he said.

Mr Omeros said the company had already begun to see the benefit of investments flow through with a range of new recurring revenue contracts signed.

Following on from the second-half organic recurring revenue being up 7% on the first half, the strong pipeline of new contracts and work creates confidence of delivering on the target of 15% growth in organic recurring revenue.

“We have the people, solutions and platform to deliver strong organic growth in the current year and are focussed on ensuring we deliver in line with our expectations.”

MEDIA CONTACT

Ben Ready
RGC Media & Mktng
+61 415 743 838
ben@rgcmm.com.au

About Over the Wire Holdings Limited

Over the Wire Holdings Limited (ASX: OTW) is an ASX listed telecommunications, cloud and IT solutions provider that has a national network with points of presence in all major Australian capital cities and Auckland, NZ. The company offers an integrated suite of products and services to business customers including Data Networks and Internet, Voice, Data Centre co-location, Cloud and Managed Services.

Over the Wire Holdings, Limited companies include Over the Wire, NetSIP, Faktortel, Sanity Technology, Telarus, VPN Solutions, Access Digital Networks, Comlinx, Zintel Communications, Fonebox and Digital Sense.

 

Tony-Nash-Booktopia

Media Release – Booktopia (ASX: BKG) Smashes Prospectus Forecasts As Customers Continue To Splurge On Books

by Client News

Australia’s leading online book retailer Booktopia Group Limited (ASX: BKG) has convincingly beaten its prospectus forecasts for the full year to June 30, 2021, with increased capacity, record numbers of customers and growing order values all combining to deliver a strong first year on the ASX.

Booktopia today (30 August, 2021) reported its first results since listing on the Australian Securities Exchange (ASX) in early December 2020 following a $43.1 million capital raising.

In the 12 months to June 30, 2021, the company reported total revenue of $223.9 million, a 35% increase on the previous year and 10% above the $204.5 million forecast in the company’s November 2020 prospectus. Since 2018 the company has achieved a CAGR in revenue of 26%.

Underlying EBITDA (adjusted for IPO costs) for the year was $13.6 million, up 125% on the previous year ($6.0 m) and 45% above prospectus forecasts of $9.4m.

The full-year result was achieved on a 27% increase in total units shipped to 8.2 million, an average annual spend per customer of $126.85 (FY20: $111.43) and an average order value of $71.07 (FY20: $65.08).

Booktopia Chief Executive Officer Tony Nash said the company’s first full-year result as a listed company was very pleasing and had laid the foundation for the next phase of growth.

“Our prospectus set some very ambitious targets for our first year as a listed company and I am very happy to report we have been able to eclipse those expectations,” he said. “Our focus has now shifted to executing our multi-pronged growth strategy that will see us ramp up our market penetration, expand our reach within the book industry and lock-in new, earnings accretive partnerships and acquisitions.”

“Our team’s performance over the last 12 months, the strength of the Booktopia brand and our ability to adapt quickly to a rapidly changing external environment leaves us confident we can continue to grow at or above what we have achieved over the last few years.”

Mr Nash said the company had started the new financial year strongly with the momentum from the previous year continuing into the current year.

“Sales for the current year are currently tracking above the same time last year, despite the ongoing lockdowns in Sydney and Melbourne,” he said.

Booktopia’s growth and success since it was first established in 2004 is built on the development and continued refinement of proprietary software and algorithms that optimise traffic and conversion rates.

The company has now built a database of over 5 million customers with 1.8 million active customers in FY21, a growth of 19% on the previous year.

As well as achieving strong market share growth during FY21, the company also identified and executed three new partnerships that would accelerate growth over the coming years. In FY21 the company finalised deals with Australian publisher Brio Books, edtech provider Zookal, and teamed up with UK publisher Welbeck for a new joint venture in Australia and New Zealand.

Mr Nash said the company was actively pursuing several new bolt-on opportunities to leverage the company’s infrastructure and systems and enhance growth.

“Bolt-on opportunities, whether through acquisition or partnership, provide a clear path to supercharging our growth over the next few years and if we see an opportunity that provides the right benefits, at the right price, we will pursue it.”

“While our immediate focus is on Australia and New Zealand, we will look at opportunities in other markets if we believe there is attractive, medium-term, growth potential.”

Booktopia is also investing in the growth of its publishing (Booktopia Publishing) and publisher services (Booktopia Publisher Services) operations that will give customers access to even more titles, more quickly. The publishing division uses BPS to distribute its books to retailers and resellers across Australia and New Zealand.

“The Australian book industry is forecast to generate more than $2.6 billion in sales this year and we want to be at the very core of that industry to ensure our customers are getting the best deals on the best books,” Mr Nash said.

Mr Nash said the company would continue to invest in expanding capacity to accommodate growth.

Booktopia has invested over $20 million in the automating of its 14,000 sqm Distribution Centre at Lidcombe in Sydney’s west resulting in a doubling of capacity that allows the company the ship 60,000 books across 145,000 different tiles per day.

As part of its planning for future growth, Booktopia has recently signed agreements to secure an additional 13,500 sqm of warehousing and distribution facilities at Enfield in Sydney’s South West to complement its existing facility at Lidcombe. The new facilities will provide increased capacity to hold and distribute stock to its customers.

“The investment in distribution centres together with our strong balance sheet means we are well-positioned to leverage our future growth profitably and sustainably,” he said.

OUTLOOK

FY22 has started strongly, with revenue tracking ahead of the previous corresponding period.

The company continues to experience strong tailwinds, including:

  • the ongoing adoption of online shopping due to structural and demographic shifts
  • acceleration of these trends due to COVID-19
  • an increase in discretionary spending locally due to travel restrictions

The Board and management are cognisant of the ongoing impact of COVID-19, geographic lockdowns and the vaccine rollout, both in Australia and internationally and note that a high degree of uncertainty continues to surround the Australian economy.

“We will continue our growth strategy, investing into key areas of the business to cement our online market leadership and drive increased market share with an ongoing ‘customer obsession’ mindset to ensure our engagement and service is second to none,” Mr Nash said.

The company will also continue the expansion of its Publisher Services (Distribution) and Publishing businesses and its investment in distribution facilities as well as exploring international expansion opportunities through partnerships and acquisitions.

“Our intent is to be the core of the book industry, locally and internationally.” Mr Nash said.