Pressure cooker: Ecom harder, more expensive, marketers cut martech, brand spend and pile into performance, if not smart strategies in place you could pay more for less in FY25 – Simon Ryan

Mi3 Audio Edition

RyanCap CEO Simon Ryan says 50 per cent of clients are “shifting a lot more money into search, digital and online video” as they scramble for immediate results and short-term sales going into FY25. Stubbornly high interest rates and crunched consumers mean major brand spending is likely off the cards for the foreseeable. “Any marketer going into a C-suite or a boardroom and pushing a big brand campaign in what is a harder market would be very gutsy,” per Ryan. “Brand is absolutely crucial. However, what is working now is an absolute customer focus.”

Problem is, marketers, especially those in ecom, are under pressure to do more with less – but actually are getting less for more, especially in search as Shein, Temu and others drive up ad prices. “You’re seeing bid prices go up,” says Ryan. “When you've got overseas competitors coming into the Australian market, that means that you're either going to be outbid or you've got to outbid them … It's going to be a real challenge for some people”.

Meanwhile ecom’s maturity means growth rates are coming down fast, creating a “pressure cooker” for marketers – and they are paring back martech spend as a result, seeking immediate wins over expensive longer-term builds.

But RyanCap, after a cash plus equity deal with Paris-headquartered, UK private equity-backed Labelium, does have money to spend – and Ryan’s hunting acquisitions. Content and creative shops could be first off the blocks – maybe. “If you look at the growth channels, and you look at where clients are spending money, that will give you a view as to how we will accelerate our strategy.”

See omnystudio.com/listener for privacy information.