Data service could push down Australian ad rates
Australian media owners fear their ad rates could be forced down by a new information service showing exactly how much the country’s major media buyers have spent, and where.
Standard Media Index – launched by Jane Schulze, formerly a journalist with the newspaper The Australian, and marketer Sue Fennessy – has signed up 12 of the country’s largest media buyers to supply monthly data on the actual value of ad buys with each outlet.
The dozen agencies are believed to represent between 50 and 80 percent of expenditure on conventional media and about a third of online spend. They are understood to include MediaCom, Mediaedge:cia, OMD, Starcom MediaVest, Universal McCann and ZenithOptimedia.
The Standard Media Index service has also obtained historical data on their spending back to 2007, which will allow subscribers to track the changing fortunes of different media outlets. And it may help to clarify the Australian revenue of international operations such as search engines and social-networking Websites which do not publicly break down their sales by territory.
However, media owners are worried that by revealing the true discounts given on ratecard it will exert downward pressure on prices, as well as affecting the share values of publicly-traded companies.
Outdoor advertising in Australia slumped in the first half of this year, with net revenue dropping 13.5 percent to AUD188.3m ($156.5m). The plunge followed six straight years of growth.
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