OneDayOnly Records 40% Growth during Lockdown | Tempemail – Blog – 10 minute

Sourced from IOL.

Unlike anything the world has seen before, the COVID-19 pandemic fuelled a sudden digital surge that catapulted both global and local eCommerce traffic to unprecedented levels. The closest comparable example – while on a much smaller geographical scale – would be the 2003 SARS crisis, which is today recognised as kickstarting Alibaba’s eCommerce success in Asia.
This is according to Matthew Leighton, spokesperson from OneDayOnly.co.za, who notes the accelerant role that COVID-19 and the ensuing lockdown has played in boosting eCommerce uptake across South Africa.
“While eCommerce has been gaining gradual traction across the country over the past decade, there is no denying that COVID-19 has served as a catalyst for rapid progress in this regard. To put this level of growth into perspective, OneDayOnly is a 30-40% bigger company today than it was just four months ago.”
This rapid growth, however, has not been without its challenges, admits Leighton. “We’re the first to put our hands up and say that we’ve experienced some issues in scaling operations over such a short and unexpected period of time.”

“The net result is that a lot of customers have received service well below our standard levels, and for that, we offer our sincerest apologies. Although our couriers and suppliers have had issues with adjusting their business approaches too, the responsibility to our customers is ours in its entirety.”
Leighton says that dispatch at the time of eCommerce reopening proved challenging, with the backlog created over Levels 5 and 4. This, in turn, created a significant influx in customer queries, meaning OneDayOnly’s Customer Service department has struggled to respond to customers within their usual time frames.
“We are working round the clock to ensure normal service is resumed, and can only apologise profusely to any customer who has received less-than-excellent service from us.”
Leighton wants consumers to know that “we’ve learnt some valuable lessons that have helped evolve our business, and this will better position us for future shopping peaks such as Black Friday later this year.”

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5G and Enterprise, a Match Made for Growth | Tempemail – Blog – 10 minute

Digital technologies are transforming industries worldwide. With 5G being deployed across the region, service providers increasingly recognise the new business opportunities that digital transformation of the enterprise market will bring. However, to successfully address these opportunities and accelerate longer-term growth, they need to extend their focus from traditional revenue streams to centre on digitalising targeted industries.
While leading service providers in the region are already taking steps to look beyond connectivity and focusing on a few specific industries, they should also expand their strategic ambition beyond mobile broadband in each targeted industry.
According to an Ericsson report entitled “Capturing business opportunities beyond mobile broadband”, almost half of the total projected value of industry digitalisation will be enabled by 5G in 2030.
Service providers’ revenues from existing business, mainly driven by connectivity, are expected to remain stagnant. It is a must to look into new opportunities to capture a larger share of the potential global ICT revenue enabled by 5G, a figure up to $700 billion in 2030 (across 10 industries).
Critical capabilities and closing the readiness gap
For most service providers, business, operational and technical capabilities are highly critical in capturing business opportunities beyond mobile broadband. As the current gap to reach the desired state is wide, service providers must begin ramping up the most critical capabilities, particularly on the business and operational fronts, to ensure successful execution.
The top five capabilities pinpointed as most critical are:

Effective B2B and B2B2X go-to-market: To engage with enterprise customers beyond legacy business, an effective go-to-market model is crucial. This involves efficient and scalable processes for engaging with customers and partners, and for distributing insights and learnings across the organization. Moreover, it concerns making sure sales teams are properly equipped to understand and address enterprise customers’ business challenges.
Leadership and culture: Leadership involves ensuring the enterprise segment receives the right level of attention from both top and middle management, and that the strategic priorities are clear. The culture should support and strengthen the strategic ambition and priorities beyond legacy business, for example through encouraging co-creation and a customer-oriented and innovative mind-set.
Industry knowledge of targeted verticals: This capability refers to having the optimal processes and resources in place to ensure an organizational understanding of industry trends, as well as customers’ business challenges, strategic priorities and digitalization needs. This is key to efficiently design, develop and sell relevant solutions to customers.
Skills: Developing and selling new solutions in new ways requires a different set of workforce competencies. Therefore, organizations must ensure sales teams are ready to serve enterprises beyond legacy business by being able to build a deeper understanding of their business needs and strategically engaging with other decision-makers. Moreover, the workforce must adapt to automation and software-based operations. If these competencies are not acquired through partners, service providers must ensure appropriate processes and tools to upskill, cross-skill, recruit and retain sought-after competencies.
Service orchestration, assurance and automation: This capability refers to automating the design, creation and delivery of end-to-end network services while guaranteeing quality and optimizing data analysis and decision-making. This is important, as networks are becoming more real-time oriented, driven by customers’ preferences for innovation and speed, and the need to meet or exceed those expectations with increased agility and lower cost structures. Orchestration answers the call for more dynamic management of information and technology in converged ICT networks and supports services and resources throughout their life cycle – from planning to fulfilment and closed-loop assurance. This is a fundamental step in further developing the capability. Ultimately, it should support end-to-end automation from RAN to core, and fully autonomous service orchestration in both internal and external customer IT environments.

At the same time, service providers around the world are not the same, and their digital strategy must be adapted to suit their unique circumstances. Furthermore, the development of execution capabilities should reflect strategic ambition.
Service providers are in a strong position to capture emerging digitalization opportunities based on their strong customer relationships, extensive network coverage and deep knowledge of digitalization connectivity requirements. Notably, they can offer end-to-end data and network security, which is a key prerequisite in enterprises’ digital transformation.
Only by addressing these key capability gaps, service providers can truly gain the ability to engage, sell and deliver solutions to enterprise segments and truly capture this revenue growth.
By Lucky La Riccia, Head of Digital Services at Ericsson MEA

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Ericsson and ATU to Accelerate Growth of ICT in Africa | Tempemail – Blog – 10 minute

The African Telecommunications Union (ATU) has signed a Memorandum of Understanding (MoU) with Ericsson to help fast track rollout of technology across the continent. According to ATU, the MoU will support the growth of ICT and set the foundation for social and economic progress in the continent.
In the understanding, the two organisations look towards promoting global and regional coordination and harmonisation of spectrum usage to encourage economies of scale and maximise the affordability for all users in Africa.
“Our collaboration with Ericsson is geared towards connecting, innovating and transforming the continent into a knowledge economy,” says John Omo, Secretary-General of the ATU. Omo who spoke during the signing of the MoU in Nairobi, Kenya further noted that it is imperative for economies across the continent to become more competitive, agile, open and innovative in order to leverage on ICT innovations to transform African nations into smart economies.
Lauding the partnership with ATU, Fadi Pharaon, President of Ericsson Middle East and Africa, says, “Our collaboration with the ATU will focus on spectrum management strategies. Leveraging our global experience working on spectrum management, we aim to share global best practices that will ensure efficient use of scarce resources and allocation of new spectrum. This will yield societal benefits that will enable a more connected and knowledge-based society in Africa.”

This move comes at a time when Africa continues to experience unprecedented growth in mobile broadband, with traffic, subscriptions, and ownership of devices growing at exponential rates. The continent has emerged as one of the strongest adopters of innovation, with a rapid rise in usage of technology and smartphones.
According to a November 2019 Ericsson Mobility Report, by 2025, Sub-Saharan Africa mobile broadband subscriptions will increase to about 70% of mobile subscriptions, with increased 4G coverage and uptake being the main engine. Driving factors behind this shift include a young and growing population and availability of lower-priced smart and feature phones.
Developing countries today face the prospect of robust economic development given that mobile communications users now greatly outnumber those using fixed-line telecommunication services. With radio spectrum a limited resource, the number of services and users that can be accommodated in any given part of the spectrum, remains limited, even in the digital world.
Therefore, the harmonised and globally aligned frameworks as envisaged in the partnership between ATU and Ericsson will assist African countries in spectrum management activities that will facilitate cost-efficient roll-out of ICT.

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TikTok Set for Explosive Growth in South Africa, says Expert | Tempemail – Blog – 10 minute

Sourced from Cosmico

South Africa’s largest annual study of social media trends has revealed that Facebook remains the social platform of choice for marketing – but TikTok is rising fast among both brands and consumers.
According to the 2020 edition of the SA Social Media Landscape, released this week by World Wide Worx and Ornico, almost a third of major brands intend to become active on TikTok, which is also the fastest growing social media platform among consumers. Fewer than 20% of brands have used it in the past year, but none believe they are doing so very effectively.
These numbers are likely to change significantly during 2020. It is estimated that around 6-million South Africans are already using the platform. Nine out of ten major brands – just more than 89% – indicated they were active on Facebook, versus 77% on Twitter, 75% on LinkedIn and 68% on Instagram.
“There was a common factor across all these platforms, however: a substantial drop in engagement from the previous year,” says Arthur Goldstuck, CEO of World Wide Worx, a business tech researching company, and lead analyst on the project.

“The one exception was LinkedIn, which saw a small increase in activity by major brands. LinkedIn also led the way in the proportion of older platforms that were intending to use it for the first time in the coming year: a large 21%. One could argue that LinkedIn is a social platform whose time has come.”
Not surprisingly, a lack of budget has emerged as the single most significant barrier to implementing social media strategies. A massive 18% are not allocating budget to social media, compared to only 1% last year. While Facebook remains the dominant platform among both brands and consumers, it has lost some appeal in terms of marketing budgets.
“Facebook spend has plateaued,” says Oresti Patricios, CEO of Ornico, a Johannesburg-based market researcher. “This signals how brands are looking at prioritising their budgets across platforms, which can also talk to where brands look to increase their communication.”
Patricios believes TikTok is set for explosive growth.
“Launched in China in 2016, TikTok is seen as the new kid on the block in South Africa which marketers and communicators are scrambling to understand.”
Goldstuck agrees, saying that “The popularity of social media environments for brands has in the past been shown to be directly related to the level of usage of those platforms by marketers. Hence, TikTok is almost non-existent among big brands, as the marketers behind those brands are not active on TikTok.”
Instagram in SA and Negativity on Twitter
Twitter and Instagram both showed strong growth in the past year, each reaching a user base of about 9-million. Data analysed for the SA Social Media Landscape 2020 report from the Target Group Index (TGI), a research survey among 30,000 South Africans conducted by Ask Afrika, shows that just over half of Instagram and Twitter users – 4,7-million on each – are highly active on these platforms.
Contrary to the view that Twitter is primarily a vehicle for negative sentiment, data on all South African tweets over a 12 month period, provided for the project by audience intelligence company Brandwatch, shows a different picture. Of the tweets reflecting sentiment, 61% comprise positive sentiments, against 39% negative.  However, it is clear that even 39% remains a high proportion, and generates significant shade over the Twitter landscape in general.
Edited by Luis MonzonFollow Luis Monzon on TwitterFollow Tempemail on Twitter

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Why Smart IT Investments Lead the Way to Post-Recession Growth- Tempemail – Blog – 10 minute

We’re going Zoom, Zoom, Zoom, and that’s the way it is.
It was the Zoom heard around the world, and suddenly a beloved cloud-based video conference provider became core infrastructure, vital as power and water, for business and government, students, families, well, everyone.
No one was more surprised than the leadership team at Zoom, which was caught off guard as the sudden bonanza in product adoption exposed security and scaling flaws and zoombombed the company to a few gnarly headlines.
Editor’s note: Pentalog recently launched a free trial of its IT outsourcing services. Sign up before August 31 and your first month is “no charge” even if you cancel or choose not to continue working with us. We’re that committed to helping companies adapt and innovate.
Nevertheless, several urgent software patches later, eyes popped again in early June when Zoom’s spectacular quarter was disclosed — TechCrunch reported annual growth of 169%, the company notching an enviable $328.2M Q1 revenue.

And so will be the story, if less dramatic, for many web platforms and digital services riding the tiger of rapid tech innovation that leads out of the crisis into growth — from telemedicine to entertainment to home delivery services of all stripes.
From big players such as Alphabet and Amazon which are leveraging scale to myriad startups with dozens of emerging value propositions, the areas of innovation are abundant and diverse across sectors.
The World Economic Forum identifies 10 key tech trends, led by e-commerce, payments, collaboration and education slated for rapid expansion as the world adapts to pandemic readiness.
“During the COVID-19 pandemic, technologies are playing a crucial role in keeping our society functional in a time of lockdowns and quarantines.” the Forum observes. “And these technologies may have a long-lasting impact beyond COVID-19.”
As McKinsey argues in a recent white paper, “[t]he disruptions of the coronavirus have underscored the crucial role of technology, from supporting remote working to scaling digital channels for surging customers.”

From recovery will emerge a new normal that generates demand for a variety of digital services. These businesses, and others that will make smart IT investments now, will capitalize on their new-found stardom to grow into leaders.

Recessions, to be plain, are economic winnowers: most companies either fall or stagnate. Yet a narrow slice of companies — a bare 9% of all businesses, several research teams have shown — unlock their potential and come out stronger.

You Gotta Be Ready to Be Ready
How do you win during the decimation of growth?
By making a deft balance of cost-savings and strategic investment, winners give themselves “the greatest likelihood” of tuning business strategies for emerging demand signals and out-performing rivals, argue the authors of Roaring Out of Recession.
These companies are able to “mak[e] significantly greater investments than their rivals do in R&D and marketing,” the authors observe, and are more prepared for the aftermath. The companies take the slowdown as a chance to re-tool for anticipated customer orders.
Revising the question of recession survival one prescient year ago, the journalist Walker Frick explained that [t]he difference maker was preparation,” that in order to make the right decisions “a company needs to be flexible and ready to adjust.”
Frick’s HBR review is riveting reading in the current context, with broad insight into business strategy (including lengthy discussions of capital management and staffing). Here I highlight his insight into two synchronistic drivers of adaptation: agility and digitalization.
Agility, the ability to align authority and expertise, is critical in this telling because it overcomes the disruption of planning cycles and centralized hierarchies, rigid and slow on good days, threatened with extinction by crisis.
As Frick looked at the aftermath of past recessions, he found that “decentralized firms delegated decision making further down the hierarchy,” and as a consequence, “were better able to adapt to changing conditions.”
At Pentalog, we see signs of task devolution, as platform and SaaS clients ask for greater assistance from some of our most highly specialized profiles, security, DevOps and architecture, among others. Our team members are helping clients navigate change.
Digitalization is a second key trend highlighted by Frick. Smart firms, provocative asserts, not only make investments (which we also see with certain clients), but they use the slowdown as an opportunity to lower the relative costs of innovation.
As Frick explains, and I quote him at length:
“[C]ompanies invest in technology during a recession…because their opportunity cost is lower than it would be in good times. When the economy is in great shape, a company has every incentive to produce as much as it can; if it diverts resources to invest in new technologies, it may be leaving money on the table. But when fewer people are willing to buy what you’re selling, operations need not be kept humming at maximum capacity, which frees up operating budget to fund IT initiatives without dampening sales.”
“For that reason,” he concludes, “ adopting technology costs less, in a sense, during a recession.”
For business leaders looking for a crystal ball, the crisis of the coming recession should not be put to waste.

Bringing it All Back Home
A dual focus on agility and tech investment is self-reinforcing because the two priorities complement each other. Agility makes better tech while practice making tech can improve team agility.
To put it another way, engaging in agile development becomes a virtuous circle, and done right, it can enable a transformational win-win to leap from lean times to recovery.
As Frick says, “IT investments make companies more agile and therefore better able to handle the uncertainty and rapid change that come with a recession.” This elusive combination of mentality and selective investment puts companies in a position to use negative market forces to their advantage, to prepare today to outrun competitors tomorrow.
While many will fail, as Silicon Valley visionary John Chambers recently said, “Almost all the great high-tech companies in each generation — companies like Cisco, Salesforce, Oracle, Microsoft, Google — were the ones that broke away during an economic crisis.”

At Pentalog, we’ve understood agility and digitalization as key business principles for more than a decade. We drew on this experience to pivot our operations to full work from home mode, upgrading our tooling and work processes in real time and at the same time.

With productivity and client satisfaction levels equal to or better than the pre-pandemic period, Pentalog welcomes entrepreneurs, intrapreneurs and innovators everywhere to leverage our full platform capabilities in development, innovation and growth.
Pentalog is committed to helping clients master the recovery. While the future may be uncertain, as McKinsey reminds us, “it’s clear already that it will be digital.”

Pentalog is offering a Free Trial of its development services.
Learn more

Further reading:
Covid-19: What are the right management tactics? What are other companies doing?
Why is Pentalog Offering a Free Trial of its IT Development Services?
Agile Transformation: Create Happy Teams and Grow a Healthy Business
The post Why Smart IT Investments Lead the Way to Post-Recession Growth appeared first on Pentalog.

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Startups in SA Can Drive Growth in the Battered Economy | Tempemail – Blog – 10 minute

Sourced from CodeXtra Trends

The GEM SA report – titled Igniting startups for economic growth and social change – contains the facts, data and figures that highlight trends in entrepreneurship in South Africa. The results of the study reveal the fundamentals to consider when developing an informed response aimed at securing economic recovery.
Angus Bowmaker-Falconer, the co-author of the report, says that “The pandemic has intensified the country’s economic challenges. We know that earnings have been affected, that further job losses are likely, and that many small, medium and micro enterprises may not survive under these extraordinary high stakes.”
Most local companies are small or medium-sized enterprises and many will battle to stay afloat after one to three months with no or limited trade and income. “Early-stage entrepreneurial startups (new ventures less than 3,5 years old) are likely to be ravaged,” he says.
The economic and social recovery could take several years. GEM’s research during the 2008/2009 global financial crash showed a significant dip in early-stage entrepreneurial activity across the globe. Entrepreneurial ecosystems took two to three years to reach pre-2008 levels after this event. The recovery curve was driven directly by country-specific economic policy and financial support responses.

Changing gears, moving forward
Moving from startup to scale requires the right support from the government and the private sector alike. The report calls for interventions in terms of government policies and initiatives, market openness, entrepreneurship education and training, and the availability of and access to finance to foster entrepreneurship.
Bowmaker-Falconer says: “Government is an enabler and fully supports and understands the importance of entrepreneurial development for inclusive economic growth and social cohesion.”
“The Department of Small Business Development (DBSD) announced significant new measures before this crisis related to access to funding. These measures include harmonising funding applications across all developmental finance institutions and introducing a blended financing model to reduce financing costs for entrepreneurs. Overall, the focus for the government should now be on achieving policy and support initiative alignment priorities.”
The government’s economic stimulus package to help bridge COVID-19 is significant, and the impact thereof for SMME’s needs to be evaluated and made public. “Big business needs to partner with the government and play their part in opening markets and value chain participation for smaller enterprises,” Bowmaker-Falconer says.
“Financiers, together with incubators and accelerators, need to help better prepare and educate entrepreneurs on how to pitch their business ideas, how to approach funders and to navigate what kind of funding is most appropriate to their specific enterprise. What is very clear is that a cohesive and collective response is needed to ignite economic development and social cohesion potential beyond this crisis we are now in.”
An underlying key requirement for managing South Africa’s economic recovery is data. Integrated and public information is critical in understanding and planning how best to stimulate and support the entrepreneurial ecosystem going forward.
Furthermore, there is also a need for more intense entrepreneurial education to engage with the opportunities offered by the Fourth Industrial Revolution (4IR).
Bowmaker-Falconer concludes, “Entrepreneurship matters. Now, more than ever, startups, and specifically those driven by young entrepreneurs and women need to deliver the innovation required to move us forward in a highly disruptive (and disrupted) world.”
The report can be read in full here.
Edited by Luis MonzonFollow Luis Monzon on TwitterFollow Tempemail on Twitter

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Zoom Profits Soar in Q1 After Strong Customer Growth during Pandemic | Tempemail – Blog – 10 minute

Sourced from Getty Images

Zoom Video Communications saw its revenue nearly tripled in its fiscal quarter to April. From $122-million a year earlier to $328-million in Q1. The company saw a massive jump in meeting participants during the month of April as worldwide lockdowns began, with over 300-million participants on the platform.
This is as more and more people have adopted the videoconferencing platform while at home during the COVID-19 pandemic.
Telecompaper reports that the company’s operating profit jumped to $23.4-million from $1.6-million a year ago, and adjusted net profit earnings rose to 20 cents a share from $0.03, double the company’s initial forecast.
Zoom says the better-than-expected results were driven by customer growth. It had around 265,400 business customers with more than 10 employees at the end of the quarter, up 354% from April 2019. The number of customers generating more than $100,000 in revenue in the past 12 months nearly doubled year-on-year to 769.

The company raised its outlook for annual revenue to USD 1.775-1.800 billion, based on the increased demand for remote work solutions for businesses.
It also assumes increased churn in the second half of the fiscal year due to a higher percentage of customers who purchased monthly subscriptions in the first quarter. Adjusted operating profit is estimated at $355-$380-million and adjusted EPS at $1.21-$1.29 in the full year.
Zoom ended the quarter with $1.1 billion in cash and equivalents. For fiscal Q2, Zoom forecast revenues of $495-$500 million, so another large increase is expected from the company as the globe settles into the new normal of the lockdown.
Improvements to Security Features
After a shaky start to Q1 where the videoconferencing service was riddled with security and privacy flaws, Zoom began to pay closer attention to patching out these issues.
On 9 May, Zoom unleashed a series of new features aimed at helping the platform rid itself of security exploits. New features include:

Passwords will be required for all meetings, including new meetings, previously scheduled meetings and those using PMI (Personal Meeting IDs)
Waiting Rooms for PMI will be turned on by default
Screen-sharing privileges will be Host-Only by default

Zoom hopes that these features and “enhanced protections will help enable [their] free users to securely meet right out of the box.”
Edited by Luis MonzonFollow Luis Monzon on TwitterFollow Tempemail on Twitter

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Colt Data Centre Services announces new APAC head to drive hyperscale growth- Tempemail – Blog – 10 minute

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Colt Data Centre Services (DCS) has announced the appointment of Hiroshige Sugihara as Vice President, Head of Asia Pacific. This announcement comes as Colt DCS continues its commitment to hyperscale builds and expansion within the region; including the scheduled completion of Tokyo’s Inzai 3 data centre later this year.
Based in Japan, Hiroshige will lead all Colt DCS operations in APAC. He will play a key role in driving the company’s global vision and continued investment in new builds across the region as the company focuses on expanding its international hyperscale offering in 2020 and beyond.
Hiroshige comes to the role with over 37 years’ experience as a senior leader in the IT industry. He has held previous executive leadership positions spanning APAC and the US, including Senior Vice President, Chief of staff, International of Oracle Corporation and Chairman of the Board, President and CEO of Oracle Japan.
“I am excited to join Colt DCS during a period of such strong growth,” said Hiroshige. “The company’s continued hyperscale expansion in APAC, as well as its commitment to the highest standards of operation were key in my decision to join the team. I am looking forward working with the APAC and global teams to ensure the company’s commitments to the region are met.”
Colt DCS CEO, Niclas Sanfridsson said: “I am delighted to welcome Hiroshige as a member of our senior leadership team. APAC has always been important for us, especially now as we look to invest heavily in hyperscale builds across the region. Hiroshige’s decades of experience in the industry will be vital in leading our operations in APAC and helping the business to reach new heights.”

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Bushfires and Covid-19 slows digital ad growth in Australia in first half of 2020- Tempemail – Blog – 10 minute

Online advertising growth in Australia slowed in the first quarter of 2020, delivering overall year-on-year growth of 3.8%, due to the impact of the post-holiday season, bushfires and Covid-19.
General display and search and directories declined from the preceding December quarter by 12% and 4% respectively, while classifieds grew 2%.
Video advertising continued to grow, increasing to a 53% share of display advertising, an 18% growth in the same quarter last year.
Some 43% of all advertising was bought programmatically, compared with 38% being bought from agencies using insertion orders. The percentage of inventory bought directly from advertisers increased to 19%, while 56% of content publisher’s video inventory was bought programmatically.
Entertainment entered the top five industry categories for the first time, joining retail, finance, real estate and automotive, despite all recording declines against the previous quarter.
The technology sector experienced the largest increase in share quarter on quarter, while the travel sector experienced the largest decline.
As more people started working from home because of Covid-19, content publisher’s desktop video inventory revenue share increased slightly to 36%, up from 34% the preceding quarter, while viewing through connected TVs was 38%, and 26% viewed through mobile video advertising.
These were the results from IAB Australia Online Advertising Expenditure Report, compiled by PwC.
“While this report captures the zeitgeist of the tough start to the year we experienced Australia wide, it precedes the real impact of Covid-19,” said Gai Le Roy, the chief executive of IAB Australia.
“There is no doubt that the current quarter will be tougher for all in the industry but we are seeing shoots of hope in some sectors.”
Read the full report here.

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Airbnb culls growth marketing and experience design in coronavirus layoffs- Tempemail – Blog – 10 minute

Airbnb’s round of redundancies includes in-house marketers from its luxury and hotels divisions – two areas chief executive Brian Chesky earmarked for disinvestment. But those who work in growth marketing, experience design and creative have also been hit by layoffs.
The company was forced to cut approximately 25% of its workforce last week after coronavirus prevention measures bottomed out the travel industry. Chesky’s approach to staff reductions was praised for the extra protections it gave to former employers.
Among those protections was Airbnb’s Talent Directory, a public recruitment list designed to help the 1,900 laid-off employees find new work. Now up and running, the directory paints a picture of which marketing functions have been stripped back to save on costs.
A total of 64 internal marketers were made redundant by the company, alongside 22 in-house creatives. Nearly 80 members of the design team were let go – the majority of whom contributed to the company’s experience design business across digital and physical projects. Five public relations executives also lost their jobs.
Cuts were made across the globe, from headquarters in San Francisco to offices in the likes of Montreal, Beijing and Singapore.
Many of the marketing layoffs included those who had worked to build out Airbnb Luxe, the company’s luxury offering that was spun off from its acquisition of Luxury Retreats and featured exclusive villas, penthouses and private islands, as well as perks such as drivers, childcare and a concierge.
Luxe was one of the lines of business Chesky said he was “pausing”, alongside its work in transportation, hotels and Airbnb Studios, which hoped to produce original films and shows on the subject of travel. Redundancies from the hotels division affected a number of designers and creatives who moved over to Airbnb after its 2019 acquisition of HotelTonight.
On top of the execs who worked in the designated “paused” departments, Airbnb has made cuts across brand marketing and media activation. Growth marketing has taken a substantial hit with 18 managers in the area made redundant. Many of these execs had worked on Airbnb’s now-defunct sponsorship of the 2020 Olympic Games.
Chesky said he took a process-driven approach to the staff cuts.
“Our process started with creating a more focused business strategy built on a sustainable cost model,” he said. “We assessed how each team mapped to our new strategy, and we determined the size and shape of each team going forward.
“We then did a comprehensive review of every team member and made decisions based on critical skills, and how well those skills matched our future business needs. The result is that we will have to part with teammates that we love and value. We have great people leaving Airbnb, and other companies will be lucky to have them.”
Alongside the introduction of the public talent directory, Airbnb has partially turned its recruitment team into the Alumni Placement Team in order to help those laid off find work. It is also offering four months of career services through RiseSmart, which specializes in career transition and job placement services.

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