Q&A with Matt Barbelli, founder and managing director of Sydney digital agency Wonderful
Matt Barbelli went from ratbag high school dropout, to determined (ad agency) door knocker, entrepreneurial start-up sensation age 26 (Frank Digital), to leading two successful agencies through a GFC and COVID, to masterminding an international merger, winning a slew of international awards, and all whilst navigating marriage, family and 3 under five, which he says lovingly, ‘is still his biggest achievement’. Here, Matt Barbelli, founder and managing director of newly launched Sydney digital agency Wonderful shares his thoughts on the creative industry, data, digital transformation, future trends and more.
Q: What specific challenges is the creative industry facing?
Matt Barbelli: So many, it’s wild right now! AI, the talent drain and a looming recession have all impacted the industry. I think it’s a really exciting time. The landscape is changing rapidly, agencies that embrace new technologies and ways of working, that can pivot and adapt will win. I think in the next few years the definition of a digital agency will change dramatically.
Q: You’ve onboarded several clients in a short period of time, what would you say your clients are looking to achieve?
MB: That’s an interesting question. I think what clients are looking for more so now than ever before is sustainable business growth. Companies want to feel confident you understand their business, their challenges and how you’re going to assist them, it’s not about us. We are getting the best results when we are working in a hyper-collaborative environment. I think gone are the days of the big reveal. We immerse ourselves in our clients’ challenges and become an extension of their team. Conversations rather than presentations.
Q: The agency has a diverse service offering, how have you built out your talent pool and team?
MB: 20 years of experience has brought with it a rolodex of world class talent. We’ve hired some really senior people to set the standard and take ownership of their practice areas. We are now looking at that next generation of talent coming through and bolstering our capacity and capabilities. When we hire senior people we obviously look at experience and past performance however for me it’s all about attitude when hiring for less senior roles.
Q: How do you adapt a business and marketing strategy to embrace the latest trends and keep ahead of the competition?
MB: We’ve never been an agency that will put forward the latest coolest thing in tech for the sake of a case study. A big part of what we do is look at the business as a whole, even down to the digital maturity of the organisation. There’s no point implementing a tool that’s complex and requires an entire department to run it if there’s only a couple people in the marketing team. We like to implement strategies and technology that drive sustainable business growth. We focus on ROI and delivering solutions that will assist in delivering that next level of growth.
Q: With scientific data-driven marketing at one end of the spectrum and genius creative ideas at the other – which side do you lean towards?
MB: You can’t have one without the other, it’s as simple as that. Data and creative go together like netflix and chill. I think there’s been a huge disconnect in the past with performance agencies solely relying on data without an understanding of good creative and vice-versa great creatives have tended to shy away from diving deep into the analytics and delivering more from a gut feel. From my perspective data is useless for a creative without an insight. We use data to provide a unique perspective or insight to inform our creative. We then continue to iterate our product or platform based on the insights from the data.
Q: How has the availability of data changed marketing (or not)?
MB: Data analytics has changed marketing in fundamental ways. It has changed the expectations of and requirements for marketing leaders and, perhaps most importantly, made the customer the driver of much of the innovation in the market. First, it has given marketers remarkably detailed insights into the experience customers have with their brands. Second, it arms marketers with evidence they can provide back to the business that marketing drives revenue growth. And third, it has made the process of marketing more efficient.
Q: What’s the secret to a successful digital transformation?
MB: Digital transformation is an ongoing process that never truly ends, and it is important to understand that it is not solely about technology. The human element is crucial to successfully going through these processes of transformation, including the needs and behaviors of customers, the company culture, and the buy-in of leadership and the wider workforce.
Research shows that 70 percent of digital transformation initiatives fall short of their intended outcome, often because the transformation is not treated as an ongoing initiative that requires consistent application of strategy as well as financial investment.
In the latest wave of digital transformation sweeping through industries, AI and machine learning are driving the changes. Therefore, it is more important than ever to address the human issues that arise.
Business leaders often assume that the human issues around digital transformation relate to change management, but it is more complex than that. To solve this, an ecosystem of stakeholders needs to be created that can work together to address the issues. Additionally, it is essential to explore and evaluate the human changes that will likely be necessary, and it requires putting hard thought into the foundational values that an organization needs to apply to successfully navigate those changes.
Having a strong purpose and values that organizations can fall back on is critical for driving positive growth.
Q: What types of clients are you looking to engage with?
MB: We are looking to work with enterprise level clients across all three practice areas. We can work with a category leader or a company that desires to be one. Our typical clients have brave ambitions and want sustainable business growth.
Q: What trends do you predict will lead the charge in 2023?
MB: Intelligent Automation
Amidst staffing shortages caused by the pandemic, organizations worldwide are being forced to do more with less. The employees who remain in the workplace are experiencing burnout due to their increased workload, which includes searching for information and performing repetitive tasks across various platforms. Therefore, many organizations are finally turning to technology for a solution.
Automation and intelligent automation are expected to play a vital role in 2023 in streamlining processes and driving efficiency, which could significantly impact the bottom line. These solutions will streamline processes across the enterprise and enable organizations to accomplish more with increased efficiency.
AI
Similar to automation, analytics, and artificial intelligence are becoming ubiquitous in every aspect of our lives and work. AI technology has infiltrated diverse areas, from autonomous vehicles to multicloud and collaborative experiences. It has evolved from being a standalone topic to an embedded technology that impacts our everyday lives and work profoundly.
Conversational AI systems have improved remarkably, resulting in more valuable brand interactions. Smarter chatbots that can handle multi-turn conversations and Alexa devices with advanced features are enhancing our interactions with machines seamlessly, aided by new software and hardware updates. Recommender engines, powered by companies like NVIDIA, are taking our digital interactions to new heights by understanding our behavior and making intelligent suggestions.
AI and machine learning are increasingly integrated into our lives, recommending what we buy, where we eat, who we talk to, and how we work, improving our in-app experiences, and delivering better proactive customer experiences.
The innovation of semiconductor designers and manufacturers like Intel, AMD, Qualcomm, NVIDIA, and others remains at the core of AI development. Software is important, but it is the continued development of CPUs, GPUs, IPUs, and DPUs that empowers data to drive insight, optimization, and real-time interactions.
In 2023, AI will be an integral part of almost every digital experience in our lives. Companies like Microsoft, Salesforce, Apple, Google, and Amazon are embedding AI deeply into our work apps, vehicles, and personal devices, leading to an exponential increase in AI’s impact on our lives.
ESG
The trend of environmental, social, and governance (ESG) has gained momentum in 2021 and 2022, and it’s expected to remain a top priority for years to come. Businesses are investing in sustainability initiatives, forming new partnerships to develop technologies that reduce their carbon footprint, and making commitments to reduce their impact on the environment.
The tech community has also taken on the challenge of combating climate change, pledging to achieve carbon neutrality by 2050. This is a much-needed step, as recent studies show that we haven’t done enough to address the climate crisis, and we’re on track to see a significant increase in global temperature in the coming decades.
I’m encouraged to see companies like Amazon, Microsoft, Intel, and SAP leading the way with their sustainability efforts and initiatives. Over 350 companies have signed Amazon’s climate pledge, and many others are making it easier for businesses to track and report on their sustainability initiatives.
In 2023, ESG will remain a critical issue, as consumers and shareholders continue to demand more accountability from businesses. While there’s still much to be done, it’s heartening to see progress and a commitment to balancing sustainable practices with customer satisfaction and profitable operations.
Collaboration is the new normal
The year 2022 saw a significant rise in hybrid work as more companies offered flexible work schedules to their employees. Consequently, collaboration companies have introduced new features and adjusted their platforms to facilitate seamless and equitable collaboration across all locations.
It is evident that this new norm of hybrid work is here to stay and will continue to improve as collaboration platforms integrate with systems of record, making it easier for employees to work across different tech stacks within an enterprise.
As silos collapse and collaboration takes center stage, it will remain a crucial part of our everyday work lives, leading to greater business success. Microsoft Teams will continue to be the leader in this space by bringing together synchronous and asynchronous collaboration and merging with applications and productivity tools.
However, Salesforce’s recent moves with Slack Canvas and Huddles are commendable. Zoom, which became the pandemic darling, has been expanding its platform aggressively. Additionally, HP’s acquisition of Poly and Cisco’s entrenched position in the collaboration space show that there will be no shortage of competition.
Collaboration will soon be a blend of the physical and digital worlds and will be further enhanced by AI, Metaverse, and 5G connectivity. It is no longer just about meetings and events, but collaboration on experiences, as exemplified by the Adobe Figma deal, which became one of the largest and most talked-about deals of 2022.
Wonderful Digital has announced a number of new client wins this month. Each client has partnered with Wonderful to engage with one of their unique service offerings, including digital transformation, product innovation and e-commerce. Founded by Matt Barbelli in 2022, Wonderful offers digital growth services. It combines data-driven research and insights, experience design, paid media, search and technology. Wonderful streamlines efficiencies, reduces costs across services, allows for scalability at speed, creates more robust strategies, allowing for more cohesive and connected solutions for its clients.