Ritson: "Out of touch" advertisers to blame for digital overspend
Advertisers, not media agencies, are the major reason why digital advertising is being over-indexed compared to traditional media, branding professor Mark Ritson has said in a column in The Australian.
Ritson said that although it may be convenient to level criticism at media agencies, which are predominantly staffed by younger Sydney-based talent that don’t consume traditional media, such criticism is “lazy thinking” because media agencies are professional and “play [investment decisions] straight”.
“The bigger problem in the world of media is the advertiser. According to my analysis, about 80% of the media decision-making power still resides completely or partially with advertisers and they are far less objective, professional or astute when it comes to understanding the changing landscape,” Ritson said.
“Unlikely to look at data, dangerously out of touch and desperate to appear on top of the latest trends for the next marketing conference — advertisers, not agencies, are the reason that ad dollars will be spent sub-optimally next year.”
Ritson urged marketers to look at their target segments and the research from these groups in order to make strategic and tactical decisions.
Government rules out additional ABC funds
Communication minister Mitch Fifield has warned there will be no extra funding for the ABC after the public broadcaster promised to deliver some staff sign-on payments, back pay and domestic violence leave on top of 2% annual wage increases, The Australian reports.
In another sign of escalating tensions between the conservative government and public broadcaster, Fifield warned the ABC’s triennial funding arrangement was set in the last budget and would not be increased to absorb escalating costs.
Fifeld and Employment Minister Michaelia Cash have written to ABC chairman Jim Spigelman asking why the ABC’s board has offered entitlements “significantly more generous” than what is adopted by other Australian government bodies.
Spigelman responded by stating the ABC Act enshrined the broadcaster’s independence in negotiating pay.
Stan banks on Showtime, local content as subs hit 600k
Stan has 600,000 active subscribers with an estimated 1.5 million active users and is reaping the rewards of its alignment with CBS’s Showtime, investment in local productions and the backing of joint venture partners,
Fairfax Media reports Stan CEO Mike Sneesby said that Stan is a pure play SVOD, which differed from Foxtel (a traditional Pay TV operator) and SVOD content bundle packages such as those offered by Foxtel Play and Optus TV.
This was important as the likes of Netflix and Amazon Prime, heavily rumoured to launch in Australia soon, are increasingly becoming production houses.
Costello tops media board pay
Former Australian Treasurer and Nine Entertainment chair Peter Costello is the best paid non-executive director of an Australian media company, netting the pro-rata equivalent of $425,000 per annum, reports.
Costello, widely regarded as one of countries finest Treasurers, was paid $266,266, including superannuation because he joined in February.
Nine also had the highest base boardroom fee of $180,000. The next best-paid chairs are Seek’s Neil Chatfield ($400,000), REA Group’s Hamish McLennan ($375,000) and Fairfax Media’s Nick Falloon ($364,000). Seven West Media chair Kerry Stokes receives $335,000, while the average fee was $255,000.
The Australian didn’t include News Corp chairman Rupert Murdoch’s take home pa in the analysis because the global media company is headquartered in the US. Last year it was reported Murdoch’s package was worth nearly $7.2 million.
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