Rod Sims Calls For Ad Industry Feedback In ACCC Speech
In a speech delivered to an AANA and Think TV audience of marketing and television advertising executives in Sydney tonight, ACCC Chair Rod Sims called on the advertising industry to provide feedback on a number of preliminary recommendations before the inquiry’s final report in June this year.
The ACCC says its digital platforms inquiry is continuing to analyse issues about the digital advertising supply chain that affects Australian advertisers, including how advertising is verified on the major digital platforms.
In digital advertising in Australia, it is estimated that more than sixty-eight cents in every dollar is going to Google and Facebook.
Sims explained: “Being big is not a sin. Australian competition law does not prohibit a business from possessing substantial market power or using its efficiencies or skills to outperform its rivals.
“But the dominance held by Google and Facebook in certain markets, plus the incentives they face, does mean their conduct should be subject to particular scrutiny to identify whether it is creating competitive or consumer harm”.
The inquiry is also examining issues concerning the pricing of intermediary services, such as the cut of the amount paid by the advertiser for the ad impression.
This is seen by many to be cloudy, particularly when there are many intermediaries involved.
Collectively, the amount charged or ‘cut’ taken by intermediaries is estimated to be between 30 and 75 per cent of the final price paid for ads.
The ACCC is exploring whether there is sufficient transparency around these transactions.
Sims continued: “It is important that we better understand the issues with the ad tech supply chain because a lack of transparency means that advertisers do not know what they are paying for, where their advertisements are being displayed, and to whom.
“Higher advertising prices ultimately translate to higher prices for consumers for products and services”.
The ACCC argues that the lack of clarity around ad-tech also arguably disadvantages online media businesses’ ability to monetise their premium content via advertising opportunities.
Sims observed: “We have not yet reached a view on these issues and we are continuing to examine the ad-tech supply chain to understand better how it works and how this impacts advertisers.
“In this, we would like the advertising industry’s help, as it is clear these are issues that require close examination”.
Another side of the transparency equation is whether advertisers can verify whether the ads that they are purchasing are actually shown to their target audience.
The AANA and Free TV have raised that Facebook and Google monitor the delivery of advertisements on their own platforms arguably acting as the scorekeeper in a game where they are a player, while, for example, TV broadcasters are subject to third party verification of their audiences.
Both Google and Facebook have rejected claims that advertisements on their platforms are not verifiable. In addition to internal processes, they both say they allow third-party measurement partners to verify metrics on behalf of advertisers.
Further, Google vice-president of search Pandu Nayak has warned that too much transparency in their algorithms could open the door to manipulate the system.
“We have not yet reached a view as to whether the existing arrangements on the major digital platforms are sufficient to address the issue. This is an issue we hope to achieve clarity on before our final report in June,” Sims said.
Each month, approximately 19 million Australians use Google search; 17 million access Facebook; 17 million watch content on YouTube; and 11 million double tap on Instagram.
“With an audience of this size, digital platforms are a primary channel for businesses looking to reach Australian eyeballs and, more importantly, their wallets. This is why this inquiry is important for Australian advertisers, and we welcome feedback from everyone with an interest”.
Sims concluded: “As an independent regulator, we want innovation. But it requires strong competition.
“It is important, at this pivotal moment, that we stay true to our purpose of making markets work and ensure markets in this critical sector are working as they should: for the benefit of media businesses, consumers, and advertisers alike”.
Facebook senior policy executive Andy O’Connell has commented that the specific problem needs to be ascertained before a solution is proposed, while Google Australia managing director Mel Silva expressed in a B&T guest post that the regulation needs to keep up with the technology.
Latest News
New ‘Future Of Work’ Gives Reckitt Employees A Choice
Reckitt launches its Future Of Work Strategy. Thankfully, no mention of the robot armies or microchip implants either.
An Educated Guess: Three Ways Hypothesis-Based Marketing Can Work For You
Look, it's top tips to mastering hypothesis-based marketing that mercifully doesn't require revisiting Year 12 maths.
AFL Legend Kevin Sheedy Narrates ‘A Love Letter To Victoria’ Via Enthral Partners
In partnership with storytelling agency Enthral, AFL star Kevin Sheedy has voiced a video ‘Love Letter to Victoria’ using visuals to showcase the state’s natural beauty and culture. Victoria has been hit with the worst of the coronavirus pandemic compared with any other Aussie state experiencing four lockdowns. Sheedy has partnered with Ethral to share […]
Telstra’s Belong Appoints Howatson + White For Strategy & Creative, Retains OMD For Media
Telstra’s lower-cost telco, Belong, has awarded its strategy and creative account to Howatson + White, and has reappointed OMD to its media buying account, after a competitive pitch process. Howatson + White will handle strategy, planning, creative and CRM, while former agency Clemenger will continue to have a relationship with Belong, managing PR and retail activation. […]
Cummins&Partners Launches ‘Wear.Bleed.Wash.Repeat’ Work For Libra
Leading Australian period care brand Libra has launched a new integrated campaign to mark the launch of Libra Period Proof Briefs, created to educate on the ease of use when it comes to period underwear.
Coke Releases New Campaign, ‘Turn Up Your Break’, Via Ogilvy
Coca-Cola Australia has rolled out its new campaign ‘Turn Up Your Break’. The campaign will be led by a TVC that encourages people to truly pause with a Coke on their break so they can walk away feeling refreshed and uplifted. The TVC features two busy chefs stepping outside for a break, the bustling kitchen […]
Nova 91.9’s Ben And Liam Locked Up In Rundle Mall To Raise Awareness For Mental Health
Nova 919’s Ben & Liam breakfast show announced that they’ll be throwing their support behind and raising awareness for a cause very close to their hearts, mental health. On Monday 21 June Ben Harvey and Liam Stapleton will be locked in a purpose-built glass structure, in the middle of Rundle Mall, for an entire week […]
Visual Search Company TRENDii Launches Privacy-First, Cookie-Free Advertising Solution For eCommerce Businesses
TRENDii has announced TRENDii Ads, a new contextual advertising solution that leverages content and context to promote eCommerce products at scale around the world. TRENDii Ads is user privacy friendly and offers a new way for businesses and brands to target consumers at the moment that they are most inspired to shop. “We believe good […]
Cannes Lions Creates Trophies Out Of Parley Ocean Plastic From Reclaimed Fishing Nets
Not only will winning a Cannes Lion mean you can charge clients double, you'll also be doing good for the oceans too.
UEFA Threatens Fines If Players Move Presser Drinks, After Russian Football Manager Skols A Coke
B&T has no real opinion on press conference drinks, suffice to say the losing team deserves a gin and a Panadol.
The Ben Roberts-Smith Defamation Trial Gets Even More Complicated
Ben Roberts-Smith's defamation gets even MORE complicated! But if you understood The Matrix films, you should be okay.
Former SBS Journalist To Sue Network Over Alleged Bullying
The nation's tax-funded broadcasters continue to make headlines. Arguably to the horror of the taxpayers that fund them.
GET YOUR SKATES ON: Entries For This Year’s Women In Media Awards Close Today!
Here's an important one for today's 'to do' list. You need to even nudge it past 'send nasty email' & 'collect laundry'.
Nearly Half Of Australians Say They’re Addicted To Their Phones
Study finds 46% of Aussies are addicted to their phones. However, they're far less enthusiastic when it actually rings.
Drunk Welsh Footy Fan Takes Tumble Out Of Local Pub During Live TV Cross
Football is the 'world game', while drunk fans tumbling out of the pub after a win also appears a worldly thing to do.
After 11 Years, Manu Feildel’s Seven Contract Comes To An End
Seven says it won't be renewing Manu's contract, despite the Frenchman appearing on every single one of its TV shows.
Zurich Extends Partnership With Melbourne Football Club
Zurich extends partnership with Melbourne Football Club. Not that the head office has the foggiest idea about the rules.
dentsu ANZ Expands Merkle To Become Lead CXM Brand & Merges Isobar Into BWM
dentsu ANZ announces some extensions and a dash of merging here, in what appears to have been a rather busy weekend.
Isentia Names Top 75 Most Visible CEO Mentions In Australian Media
This CEO media list is a little bit on the predictable side. And not only that it's full of white, middle-aged men.
iHeartPodcast Network Australia And The New York Times Agree Podcast Ad Sales Deal
ARN and The New York Times have reached an agreement for ARN to become the advertising sales representative for The New York Times’s podcast portfolio in Australia. The deal will enable Australian brands to connect with Australian listeners to The New York Times’s most popular podcasts, such as The Daily, Serial and This American Life, […]
Study: Aussie Shoppers Still Buy On Price, But Emotion & Ethics Are Increasing Drivers
Study finds Aussies still mainly buy on price. Which is arguably not good news for chickens stuck in cages.
Sunday TV Wrap: Australian Ninja Warrior Launches To Just Under 800,000 Viewers
Ninja Warrior provides a possible insight into what you could look like if you ever bothered to use your gym membership.
DDB Remedy Launches New Campaign Heart Foundation Campaign ‘Saving Hearts’
Overdo it on the greasy burgers & fries over the weekend? Feel the coagulation in the chest watching these heart ads.
CHE Proximity Snares Justin Ruben Back From New York For ECD Role
CHEP looks to New York for new ECD, snaring Justin Ruben. Although he stresses he's no relation to the famed sandwich.
Kathmandu Hosts Urban Zipline Event In Partnership With Beyond Blue
Nothing says the outdoors like the Kathmandu brand. Although it readily fails to mention the chances of bear attack.
Victoria’s Secret To No Longer Call Ambassadors ‘Angels’ As Part Of Major Rebrand
In bad news for perverts everywhere, knickers brand Victoria's Secret is shifting its marketing out of 1972.
Evian Uses Ronaldo’s $5.2 Billion “Drink Water” Stunt In Own Marketing
Nothing screams "wanker" quite like an Evian water, does it? Admittedly, a well-hydrated wanker.
Verizon Media Academy Ends For 2021 With Youth Charity Pitch-Off
Verizon Media’s talent program has come to an end for the third year, closing with a hybrid pitch-off event for Musicians Making A Difference (MMAD). The Verizon Media Academy class of 2021, made up of 44 emerging leaders from across Australia and New Zealand media, advertising and marketing industry, were given just one hour to […]
Facebook To Expand Transparency Around Political And Social Issue Ads In Australia
Facebook to expand transparency around political & social issue ads. Mark still refusing to crack a smile, however.
Industry’s Gamers Unite For UnLtd’s Virtual Rocket League Comp
Social purpose organisation UnLtd’s Big Games competition has raised a combined $85,000 for children and young people at risk. Running over five weeks, the competition involved 32 teams from across the advertising, marketing and media industries battling it out virtually for a chance to qualify for the Rocket League final. The tournament culminated in a […]
