Seek To Start Charging For Recruiters To Access Its Database

Seek To Start Charging For Recruiters To Access Its Database
SHARE
THIS



Twenty years after it disrupted the newspaper game, online recruitment specialist Seek now finds itself having to bend its model to the will of a rampant, global insurgent – in this case LinkedIn.

For the first time the company will charge its recruitment industry clients to access its databases via its Talent Search system, according to a financial analyst report.

In the report by Morgans, obtained by Which-50 off the back of the usual truck, analyst Ivor Ries notes, “SEEK managing director Australia Mr Joe Powell yesterday confirmed that the company has commenced negotiations with major recruitment firms on charging for the ability to access candidates via the Talent Search system. While clients would be granted credits for the volume of current business, any consumption of candidate data and access above a set data limit would be subject to charging.”

The report estimates the size of the recruitment placement fees market at $4 billion and suggests the industry will have to cop five to eight per cent of that pool being directed to the cost of database access in future.

Ries is bullish in Seek’s move, buying the company’s spin that the decision to pull forward the new model is a measure of its strength and acceptance by the recruitment sector.

There is no escaping the reality though that Seek’s moment alone in the sun following the decline of News and Fairfax in the 90‘s and noughties as tier one recruitment channels is long past.

From ancient grudge break to new mutiny

LinkedIn has reset the rules around recruitment in two important ways. Firstly for many companies LinkedIn isn’t necessarily a better way to advertise – but rather it has removed the need to advertise altogether, or at least mitigated against it as anything but a last resort, especially in senior white collar jobs.

And just as importantly LinkedIn has reframed the recruitment industry game through the provision of new subscription based services levels of which database access is just one component.

News and Fairfax bore the brunt of the first change, and Seek, the market leader for online jobs down under must now respond to the second.

Don’t write them off, but watch them closely

Seek has a long track record of success and unlike the companies it usurped, it has a native understanding of what disruption looks like, and the chaos it can unleash on slow moving incumbents.

Its problem however – just like local banks going up against tech giants in the transaction space, or retailers battling Amazon and Alibaba – is the tech stack.

It will be battling a global technology superpower and ultimately it will struggle to match the levels of investment in that stack. It will have to find a new way to respond.

And while LinkedIn’s users are permanent and highly engaged, that’s not a claim a job’s board can credibly make.

In his report, Ries writes, “The importance of a successful launch of the Talent Search database product – sometimes dubbed SEEK 2.0 – cannot be underestimated. The market for job advertising is limited and job ads only result in approximately 25-30% of job placements. Only by penetrating the market for candidate data can SEEK grow its domestic recruitment business to provide a larger share of successful job placements, and thus the value created.”

He cautions however that some cannibalisation is inevitable. 

“Every job placement made via the database means that no job is advertised and SEEK loses revenues. Therefore it is reasonable to expect that the gains in revenues projected from the database will result in some erosion in advertising revenues.”

Morgans estimates Seek will deliver Ebitda of $371 million this year.

 Article by Andrew Birmingham which first appeared on www.which-50.com

Latest News

Women In Media Profile: Judy Sahay
  • Media

Women In Media Profile: Judy Sahay

B&T's Women in Media profiles are like a wave washing over you. Even more so if an actual wave washes over you.

by B&T Magazine

B&T Magazine
How B2B Companies Can Use Their Customer Data More Effectively (And Why They Need To)
  • Marketing
  • Opinion

How B2B Companies Can Use Their Customer Data More Effectively (And Why They Need To)

In this opinion piece, SalesPreso co-founder and CMO Joel Thomson (pictured below) explains how B2B companies can use their data more effectively and deliver a personalised customer experience that matches their B2C counterparts. From the Cambridge Analytica scandal to the EU’s recent GDPR legislation, this year has prompted individuals all over the world to consider […]

Opinion

by B&T Magazine

B&T Magazine
M&C Saatchi Launches THIS Film Studio
  • Advertising
  • Marketing
  • Media

M&C Saatchi Launches THIS Film Studio

Not one to rest on its laurels, M&C Saatchi unveils new production studio it hasn't called 'Not One To Rest On Laurels'.

Creative Agency Launches Project Management Tool ‘Hassl’
  • Advertising
  • Technology

Creative Agency Launches Project Management Tool ‘Hassl’

Yesterday at TedX Melbourne the team behind award-winning, Melbourne-based agency Your Creative launched their new tech venture Hassl, the project management platform taking on Trello and the likes. With the belief there was a better design solution to project management, the platform has been developed over the last two years in collaboration with their clients. […]

ABC Axes Tom Ballard’s Tonightly
  • Media

ABC Axes Tom Ballard’s Tonightly

It's one of the ABC's edgier, controversial shows, but Tom Ballard's proven too edgy and controversial for ABC chiefs.

Taboola Strengthens APAC Programmatic Offering With New Partnership
  • Advertising
  • Media

Taboola Strengthens APAC Programmatic Offering With New Partnership

Global discovery platform Taboola has announced a strategic partnership with Wider Planet, Korea’s largest demand-side and data management platform. The partnership builds on Taboola’s programmatic efforts in Asia-Pacific, and will bring together Korea’s largest demand platform for agencies and brands to provide access to Taboola’s global audience through premium publisher placements. The partnership means advertisers […]

The Haus Picks Up Two New Clients
  • Marketing

The Haus Picks Up Two New Clients

The Haus announces two new client wins. Admittedly, not as good as winning three, but far better than losing four.

businessman using tablet PC and information communication technology concept. IoT(Internet of Things). GUI(graphical user interface). paperless office.
  • Marketing
  • Technology

Smartly: The Future Of Martech Is Automated

Automated ad buying platform, Smartly was at the centre of the tech innovation stage at the Online Retailer conference 2018. Smartly head of ANZ Marta Bonzanini (pictured below) discussed the integral role automation plays in the future of marketers and creatives. “If an ad is not performing as well as planned, you probably have some […]

Messenger Launches Video Chat AR Games
  • Technology

Messenger Launches Video Chat AR Games

For the moments when we can’t be together IRL, Messenger video chat helps you connect in real-time with the people you care about most. Chatting face-to-face live makes all the difference when you have exciting news to share, you need a study buddy for a big test, or you simply want to pass the time […]

Sphere Wins Stockdale And Leggo
  • Media

Sphere Wins Stockdale And Leggo

Sphere snares Stockdale & Leggo business, which is a real estate group & not a simmer sauce as first reported on B&T.

Aussie AgTech Start-Up Leads Global Farming Innovation
  • Technology

Aussie AgTech Start-Up Leads Global Farming Innovation

With Aussie farmers facing so many challenges, could the answer be Blockchain technology? Ranking top 10 at this year’s Overseas Talent Entrepreneurial Conference (OTEC), pitching against 32 other start-ups from around the world, Aussie start-up Agunity are leading AgTech innovation. Having won the right to represent Australia during Investible’s nation-wide pitch competition, AgUnity took to […]

Women In Media Profile: Carolyn Bollaci
  • Media

Women In Media Profile: Carolyn Bollaci

Facebook's Carolyn Bollaci is the latest to sup at B&T's truth serum we prefer to call our Women in Media profiles.

by B&T Magazine

B&T Magazine
Vic Govt Unveils ‘Tafe + Jobs’ Via Fuel Agency
  • Advertising
  • Campaigns

Vic Govt Unveils ‘Tafe + Jobs’ Via Fuel Agency

The Fuel Agency has launched the new ‘TAFE + Jobs’ campaign, aimed to promote and drive applications and enrolments for courses starting in 2019 There’s a lot happening in Victoria, with record investment in road and rail projects, and in the health, community and disability sectors. As a result, there’s greater demand for skilled workers. […]

Rakuten Marketing Appoints New CEO
  • Marketing
  • Technology

Rakuten Marketing Appoints New CEO

Rakuten has a new CEO. However, judging by the tired handshake photo, B&T doesn't have any new ways of illustrating it.

Why Consumers Block Your Advertising
  • Advertising
  • Opinion

Why Consumers Block Your Advertising

Who better to explain why your ads are getting blocked than a real ad blocking expert. As B&T has done right here.

Opinion

by B&T Magazine

B&T Magazine
Women In Media Profile: Jackie Crossman
  • Media

Women In Media Profile: Jackie Crossman

B&T has spared no expense with today's top Women in Media profile, save for suit hire, corsage and dry-cleaning.

by B&T Magazine

B&T Magazine
Kantar certified by Google as a verified Measurement Partner
  • Technology

Kantar certified by Google as a verified Measurement Partner

The announcement designates Kantar as an approved third-party measurement provider for brands looking to verify their media spend performance on Google owned platforms. Kantar is approved globally to provide both Brand Lift Insights for evaluation of brand impact from campaigns and for independent measurement of audience reach from campaigns on Google properties. Kantar CEO Eric […]

THIS
  • Advertising
  • Marketing
  • Media

Final Call! B&T Late Entries Close Today!

B&T Award entries officially close at 5pm today! Good news if you've almost finished, bad news if you haven't started.

by B&T Magazine

B&T Magazine