Ebiquity Report: Aussie Advertisers Getting As Little As 40 Cents Of Media For Every $1 Spent

CASH BLOWING OUT OF OPEN WINDOW
SHARE
THIS



A new report by media strategy firm Ebiquity has found that Australian advertisers can get as little as 40 cents of actual media for every dollar they spend.

The findings of the report, published on The Australian today and to be presented to an Australian Association of National Advertisers (AANA) conference tomorrow, highlight on ongoing issue in Australia’s media landscape that a long list of players are “taking a cut of the ticket” when it comes to media spends.

It’s been reported that Ebiquity’s research found that as much as 60 per cent is being sucked up by agencies, who, worryingly, can’t vouch for the rogue monies. However, the biggest culprit appeared to be the programmatic purchase of digital advertising.

Nick Manning, Ebiquity’s chief strategy officer, told The Oz: “From advertisers’ perspective, they pay $100,000 for a campaign and only get $40,000 of media. Then the problems start as viewability and fraud reduces even this by roughly half on average, so the $100,000 actually equates to $20,000 of useful media,” he said.

The AANA has been one of the more aggressive industry bodies in attempting to get more transparency in media buying in Australia. The AANA works for the actual advertisers and not their agencies. In particular, it has petitioned the likes of Facebook to have more third party verification for its data.  In late 2016, Facebook found itself in trouble after grossly misreporting its audience numbers.

Ebiquity’s findings appear to mirror a worrying report into US media agencies released in June of last year. The report by the US Association of National Advertisers found evidence of a “fundamental disconnect” in how agencies and advertisers view their relationship and “systemic elements” to some non-transparent business practices outlined in the report, some of which senior executives are aware of or mandate.

Other findings included mark ups on media sold through principle transactions ranging from around 30 to 90 per cent, with media buyers allegedly being pressured or encouraged by their agency holding companies to direct client spend to them regardless of whether it is in the clients’ best interest.

Commenting on the US study, the AANA’s  CEO Sunita Gloster said at the time: “Any best practice guidelines or initiatives that emerge are likely to have universal application, so we will aim to share them with our members here.

“Whilst the US report reminds advertisers to remain vigilant, it is important that we remember these principles of transparency, disclosure and fairness are central to the reputations of all parties involved. Equally importantly, adherence to these principles is crucial to achieving our common goal which is to show the link between advertising and business growth. Businesses need to have confidence in the integrity of their media spend allocations,” she said.

Please login with linkedin to comment

Advertising Standards Bureau Popular YouTube ads ZenithOptimedia

Latest News

Shop! ANZ Calls On Industry To Participate In ANZ Shopper And Retail Marketing Industry Survey
  • Marketing

Shop! ANZ Calls On Industry To Participate In ANZ Shopper And Retail Marketing Industry Survey

Shop! ANZ is calling on shopper and retail marketing professionals from all retail related disciplines to participate in the first ANZ Shopper and Retail Marketing Industry Survey in four years. This important research provides a guide of where the retail marketing industry in Australia and New Zealand has come from and what is anticipated to […]

How To Align A Marketing Strategy With Customers’ Shifting Perspectives
  • Opinion

How To Align A Marketing Strategy With Customers’ Shifting Perspectives

In this guest post, Ania Kubiak (main photo), A/NZ country manager at Lucid, offers her tips on how to align your brand with customers’ fast-moving expectations… In today’s digital world, the speed at which consumers’ perspectives and opinions on political and social environments is changing faster than ever before. Consumers are inundated with new information […]

Opinion

by B&T Magazine

B&T Magazine
Woolies’ Retail Media Business Cartology Announces New Appointments
  • Advertising

Woolies’ Retail Media Business Cartology Announces New Appointments

Cartology, the retail media business of Woolworths Group, has further expanded its team with Martin Wood (pictured below) been promoted to head of strategic partnerships and Matt Gower (main photo) has joined the business as senior manager of research and insights. Wood will lead a new team dedicated to servicing the retail media business’s largest […]

Condé Nast Agree To Wage Raise After Two-Year Campaign By The New Yorker Union
  • Media

Condé Nast Agree To Wage Raise After Two-Year Campaign By The New Yorker Union

CondÉ Nast, the publisher of publications such as VOGUE, Vanity fair, Pitchfork and The New Yorker has agreed to raise the minimum wage for employees after a campaign by the New Yorker union. The union had previously organised a protest, which saw New Yorker staff demonstrating outside VOGUE editor-in-chief Anna Wintour’s home. Placards at the protest had […]

GoDaddy Wins Gold As Official Partner For Australian Olympic Team
  • Technology

GoDaddy Wins Gold As Official Partner For Australian Olympic Team

GoDaddy has announced it has been named as the official website builder partner of the Australian Olympic team for the Tokyo 2020 Games.  GoDaddy has a history of supporting entrepreneurs and small business owners in Australia. Many Australian Olympic athletes are small business owners themselves, running businesses and side hustle to help support the pursuit […]

Global Media Network MDC Partners Adds This Is Flow To Global Affiliate Program
  • Marketing

Global Media Network MDC Partners Adds This Is Flow To Global Affiliate Program

MDC Partners (NASDAQ: MDCA), the company that owns agencies including 72andSunny, Anomaly and Media Kitchen, has expanded its global footprint in a partnership with This Is Flow. The Australian based indie will become MDC’s affiliate media planning and buying agency across Australia and New Zealand and will help manage global clients and participate on global pitches etc. however This is Flow will still remain 100% independent.

Woman hand using mobile phone and laptop, Worldwide connection technology interface.
  • Technology

DoubleVerify’s Custom Contextual Targeting Launches On The Trade Desk

DoubleVerify has announced the expansion of a partnership with The Trade Desk to include activation of DV Custom Contextual, which will enable programmatic advertisers using the platform to target relevant audiences in a privacy-safe manner that does not utilize cookies or personally identifiable information. The Trade Desk now supports a comprehensive suite of DV’s pre-bid […]

Seven Reveals Revenues Up 45% In Q4
  • Media

Seven Reveals Revenues Up 45% In Q4

Seven West Media releases Q4 update. Yet, no mention of Ben Roberts-Smith or James Warburton's gold-plated toilet seat.

Swinburne University Of Technology And FourthRev Help Students Gain Hands On Digital Skills
  • Marketing

Swinburne University Of Technology And FourthRev Help Students Gain Hands On Digital Skills

Swinburne University of Technology has launched a series of  Bootcamp Graduate Certificate courses, developed in partnership with FourthRev. The courses, an Australian-first, will upskill career changers and provide students the capabilities required to thrive in the digital economy. They are available on-campus and through its online arm, Swinburne Online. Alongside completing projects which will emulate […]

PayPal Partners With Welcome To Country
  • Marketing
  • Media

PayPal Partners With Welcome To Country

PayPal has partnered with Welcome to Country, Australia’s first Indigenous-led not-for-profit marketplace, which showcases businesses that support Aboriginal and Torres Strait Islander communities. Welcome to Country launched in 2019, providing an online platform for Indigenous experience providers across tours, day treks, scenic flights, bush food, festivals, art and cultural experiences. When the pandemic hit, the […]