GroupM Set To Show Free-to-Air Loyalty With $650 Million Spend
Despite rumours to the contrary, GroupM – Australia’s biggest buyer of TV airtime – is set to spend $650 million over this financial year with Seven, Nine and Ten The Australian has reported this morning.
And despite losing its CEO, Hamish McLennan, today, Channel Ten appears to be the biggest winner with its share of the pie up three per cent from last year to 23 per cent for 2015-2016.
However, Seven is set to get the biggest piece of the pot with an estimated 40-42 per cent share. While Nine is not far behind with 37-39 per cent share (although Nine boss, David Gyngell, recently predicted the station would rise to 40 per cent share by the end of the year.) However, these figures could all rise (or fall) depending on how certain programs rate.
GroupM has put more money into a float that enables the agency flexibility if free-to-air audiences show signs of structural decline.
The news of the increased spend follows on from comments by outgoing chief trading officer Danny Bass who said in April that advertising on the free-to-air networks was too expensive considering the quality of programming and diminishing audiences.
Bass has since quit his role at GroupM to take up a new position as chief executive at IPG Mediabrands.
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