B&T’s Fast 30 podcast is back again, this time featuring CHE Proximity CEO and industry nice guy Chris Howatson.
Among the many tantalizing topics spoken about throughout the podcast (produced by audio specialists Eardrum), it was the discussion about media transparency that had B&T’s John Bastick and Daisy Doctor sitting on the edge of their seats.
Listen to the podcast here:
When asked which issue in media had not been given enough attention recently, Howatson was quick to respond with, “transparency”.
With Howatson later adding, that there is “huge dodginess” in Australian media.
Howatson admitted seeing shifty behaviour among media agencies while working with them for an unnamed client.
“I see it and won’t suggest who or anything, we work with some clients alongside media agencies and you can see in their proposals; the recommendations are biasing towards highly commissionable channels,” he said.
“Whether that’s through pre-organised rebates or whether that’s inventory they’re owning and trading on; there’s just not the transparency to the client about whether the mark up they’re getting from those sources of ad inventory is more or less than others,” he added.
Asked if the solution is self-regulation, Howatson said no.
“I think it’s going to be really hard to self-regulate because it’s broken.
“The ex-CEO of MediaCom said, ‘Why is it agency compensation is going down yet revenue is going up?’ Those two things just don’t line up, right, so that just kicked off the whole thing.
“So I think the industry has done it to itself because procurement has pulled out all the margin and therefore people have had to look in different ways to make money.
“That’s why they’ll create their own inventory banks and sell them off at major multiples higher than what they paid for it,” Howatson said.
Speaking about who’s getting it right with transparency, Howatson praised Omnicom Group.
“Omnicom Group, for example, is very clear about remuneration.
“It’s certainly how we model our agency, we call it ‘Nothing Dodgy Media’.”
“If we can’t disclose transparency around where their dollar goes than you end up spending a lot of money,” he added.
Check out the podcast below:
It’s the latest episode of B&T‘s Fast 30 podcast, produced by the talented team at Eardrum.
If you’re a fan of our fortnightly podcast, please join our dedicated Facebook group and comment on who we should invite on next!
In a massive shift in the broadcasting landscape, Amazon Prime has secured the Australian rights to the next cricket World Cup alongside a range of other tournaments run by the International Cricket Council (ICC) until 2027. The deal means that Australian Cricket fans can only access the tournaments if they have a paid subscription to […]
With just over 24 hours to go until the world premiere of Addy Lala and the Mood Tea Thieves, limited tickets are still available for the pantomime, which will run for one night only at the Everest Theatre in Sydney’s Seymour Centre on December 5th. All in the industry are encouraged to come along to […]
2045, a Melbourne-based creative agency founded by Tim Evans and Nick Auditore has just launched. The agency takes its name from the year futurist Ray Kurzweil predicted organic and artificial intelligence would converge. Lead Image: 2045 Team Evans was formerly a Partner and Executive Strategy Director at DT (now AKQA), before co-founding B.B.E in 2015. […]
The National Breast Cancer Foundation has been announced as the Charity Partner for Sydney New Year’s Eve. The Australian not-for-profit organisation is represented by the pink ribbon and raises money to fund world-class research towards its vision of zero deaths from breast cancer. Research that saves lives through a better understanding of how to prevent […]
This holiday season, Emporium Melbourne has announced its festive creative campaign that celebrates and encourages the Melbourne community to embrace their personal ‘untraditional traditions’ – the unique traditions that make Christmas truly special for them, and their family. The campaign’s tagline, “Every tradition starts somewhere”, reflects Emporium’s commitment to embracing, inspiring and applauding diverse traditions […]
Reddit has announced updates to its new ads placement with Carousel Ads and Product Ads. These new units, placed in the heart of Reddit discussions, provide an even more dynamic and compelling way for advertisers to scale to relevant audiences, deliver deeper value to users, and drive stronger, full-funnel performance among the hundreds of thousands […]
Automotive Network Drive has announced its 2024 upfronts, its biggest in more than a decade, with a suite of more than 12 new products that underpin its vision to be the number one automotive network in Australia. Now in its 27th year and with a monthly audience of 2.45 million, Drive is leveraging its reputation […]
B&T unaware of the vitriol & acrimony between the online mattress companies. We were aware of it between News & the ABC.
oOh!media continues to rapidly expand its large format digital network, launching seven new sites at premium locations across major arterials in Sydney, Melbourne and Brisbane. The latest large format digitals include another premium site in the exclusive Sydney suburb of Mosman. Positioned at the gateway of the lower north shore on Military Road, the high-impact […]
The Seven Network revealed the results of the second round of its flagship innovation initiative – Ignite – which saw seven employee-led generative AI concepts selected for prototype development. An inspiring three-week event, Ignite brings together internal cross-functional teams of engineers, data scientists, product managers and staff from across the business to collaborate and develop […]
Australian tech consultancy Engaging.io has scored a major business win with the appointment by a leading Texas-based US National Basketball Association (NBA) team to revolutionise its marketing and communication strategies. The powerhouse NBA franchise turned to Sydney-headquartered Engaging to spearhead a major HubSpot implementation, driving greater efficiencies, personalisation and a more seamless experience for fans. […]
Dentsu Queensland has formed a strategic partnership with DeadlyScience, an organisation that provides science, technology, engineering and maths (STEM) resources to Aboriginal & Torres Strait Islander students across Australia. The partnership is in collaboration with UnLtd, which helps connect the media and marketing industries with charities helping children and young people at risk. This is […]
Victoria-based Venetian Media Group (VMG) has acquired web and digital strategy shop Digital Native. Lead image L-R: VMG CEO, Michael Fishwick; Digital Native big chief, Matt Gardan. Digital Native specialises in digital strategy, branding, UX and web design it has deep experience in renewables, emerging technology and not-for-profit. Its web design process and collaborative approach […]
One of Australia’s biggest off-street car and motorbike festivals, Rare Spares Rockynats, is returning to Rockhampton for Easter 2024 and has kicked off its promotional calendar with a high-octane media campaign. The two-phase campaign, via award-winning marketing agency Murmur-Group, will launch across large format out-of-home and retail placements and will be supported by local radio, […]