Podcast Summary: On Strategy Showcase – "The Story Behind Telstra's Marketing Transformation"

Podcast Information:

• Title: On Strategy Showcase
• Host: Fergus O’Carroll
• Episode: The Story Behind Telstra's Marketing Transformation
• Release Date: July 27, 2025

Introduction

In this insightful episode of On Strategy Showcase, host Fergus O’Carroll delves into the transformative marketing journey of Telstra, Australia's leading telecommunications company. Fergus welcomes Brent Smart, the Chief Marketing Officer (CMO) of Telstra, to discuss the strategies and creative initiatives that have repositioned the brand from its government-owned roots to a dynamic, privately-run enterprise. The conversation offers a deep dive into Brent's extensive background, the challenges faced during Telstra’s rebranding, and the innovative campaigns that have set new standards in the industry.

Brent Smart’s Background

Brent Smart brings a wealth of experience from his tenure in the advertising world. Before joining Telstra, he held prominent positions at Colenso BBDO in New Zealand and served as the CEO of Saatchi & Saatchi in New York City. His agency background is pivotal in shaping his approach to marketing at Telstra.

Brent Smart [05:04]: "I've always just sort of loved everything about creating the work, and I was good at selling it. That was sort of my superpower."

Transition to Telstra and Marketing Transformation

Brent was recruited to Telstra to spearhead a significant rebranding and repositioning effort. Telstra, akin to AT&T in Australia, transitioned from a government-owned entity to a private company, bringing along challenges associated with its legacy.

Brent Smart [16:12]: "If you want to change how people feel about your brand, change how the brand feels."

Brent emphasized the importance of altering the brand’s personality to shift public perception, moving away from the old government-associated image that was often perceived as rigid and customer service-challenged.

Key Strategies Implemented

Upon joining Telstra, Brent focused on both quick wins and long-term strategic changes to build momentum and demonstrate immediate impact.

Creating a New Brand Identity

One of the cornerstone strategies was the introduction of the "Better on a Better Network" campaign. This initiative involved producing 26 unique 15-second stop-motion animated spots aired during the Olympics, showcasing Telstra’s superior network coverage, especially in regional areas.

Brent Smart [33:01]: "If you can get the idea really simple, then there's lots of room for the craft to really sort of kick in and make it quite extraordinary and amazing."

Quick Wins: Christmas Ads and Sponsorships

Brent strategically launched emotionally resonant Christmas ads and leveraged Telstra’s sponsorship of major football events to connect with audiences on a personal level. These campaigns were designed to highlight moments of connection, aligning with Telstra's core service offerings.

Brent Smart [17:32]: "We wanted to make a bunch of little 15s that just keep turning up during the Olympics and each time they sort of surprise you."

Agency Partnership

Telstra partnered with the creative agency Bear Meets Eagle on Fire, led by the exceptionally talented Michael Walker. This collaboration enabled Telstra to maintain a high level of creativity while leveraging the strategic and delivery capabilities of the larger TWA network within the Omnicom group.

Brent Smart [24:26]: "Micah brings two things to the brand... he brings very strong views on our voice... and he brings unbelievable craft."

Creative Campaigns

"Better on a Better Network" stood out as a testament to the power of simplicity and craftsmanship. These stop-motion animations, inspired by the style of Wes Anderson, were meticulously crafted over seven months, combining nostalgic aesthetics with modern CGI to highlight Telstra’s network strength in a playful and engaging manner.

Brent Smart [34:03]: "I love the craft of the human hand is one of our personality traits."

Brand Positioning and Personality

Telstra’s new strapline, "Wherever we go", encapsulates the brand's commitment to partnership and an optimistic future. This phrase reflects Telstra’s mission to build a connected future where everyone can thrive, emphasizing collaboration and mutual growth with customers.

Brent Smart [28:25]: "Where we go, we go together. Partnerships are inherent in it."

Impact and Metrics

The marketing transformation has yielded impressive results for Telstra. Over 18 months, Telstra’s Brand Strength index saw an increase of 2.9 points, while the rest of the telecommunications sector experienced a decline of -1.5 points. Additionally, Telstra achieved a 75% increase in ROI for performance marketing efforts, demonstrating the effectiveness of integrating strong brand-building initiatives with performance strategies.

Brent Smart [47:18]: "Our brand strength's gone up 2.9 points in the last 18 months, while the rest of the telcos have gone down -1.5."

Marketing Effectiveness vs. Science

Brent differentiates between "marketing science" and "marketing effectiveness," emphasizing the practical application of effectiveness principles over rigid scientific rules. He advocates for strategies like Future Demand by James Herman to guide brand building and marketing effectiveness.

Brent Smart [43:16]: "I like brand strength... it's about the equity in the brand. That's not about how big your revenue is or how big..."

Notable Collaborations

A highlight of Telstra’s creative endeavors includes a collaboration with renowned animation director Dougal Wilson, known for his work with John Lewis. Together, they produced a series of cinema spots encouraging moviegoers to silence their phones, blending nostalgic aesthetics with modern storytelling.

Brent Smart [40:35]: "We've got a long-standing advertising spot where... 'Turn off your phone from Telstra.' We wanted to make that better."

Conclusion

Brent Smart’s tenure at Telstra exemplifies a successful blend of creative innovation and strategic marketing effectiveness. By reimagining Telstra’s brand identity, fostering strong agency partnerships, and prioritizing brand strength, Brent has not only enhanced Telstra’s market position but also demonstrated the tangible benefits of investing in creative, emotionally resonant marketing strategies. The episode concludes with Brent reflecting on his achievements and expressing optimism for Telstra’s continued growth and impact.

Brent Smart [50:36]: "I'm a big fan of the show. It's been great to be on and awesome talking to you."

Key Takeaways:

• Brand Transformation: Changing brand perception by altering its personality and identity.
• Creative Campaigns: Leveraging unique, high-quality creative work to stand out in crowded markets.
• Strategic Partnerships: Collaborating with specialized agencies to balance creativity and scalability.
• Effectiveness Over Strict Science: Focusing on practical marketing effectiveness principles rather than rigid scientific rules.
• Measurable Impact: Demonstrating tangible improvements in brand strength and ROI through strategic marketing initiatives.

This episode serves as a compelling case study for marketers seeking to understand the intricacies of large-scale brand transformation and the critical role of creativity in driving commercial success.