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Advertisers chasing ‘unrealistic’ discounts

Seven sales boss says the network refuses to deal with some advertisers who expect unrealistic discounts on ad rates.

seven 008Seven Media Group chief sales and digital officer James Warburton says advertisers are attempting to push media advertising rates down by as much as 40% in the $12 billion advertising sector.

He said some media buying groups were comparing the Australian market with those in North America and Britain and expecting ”insane” deal-making from media owners.

”Last week’s bookings for October were the best we’ve had since the Olympics,” he told the Sydney Morning Herald.

”Volume is coming back and that is being partially driven by September, when people got caught out.

”There are quite a few media sectors beyond television which are realising we are through the bottom and we’re back into a period of progression,” he said.

Warburton said Seven had refused to deal with some advertisers because their demands were unrealistic.

He said Channel TEN and the Nine Network had encouraged the fringe behaviour to some extent because of their drive to shore up advertising market share.

Source: smh.com.au

3 Responses

  1. @James: As far as I’m aware, networks are only allowed 15 minutes per hour, however that can be an average, so in the early hours of the morning, ad breaks may be only a minute long. But during prime time ads reach over 4 minutes (according to the chapters I’ve made on my dvr) which still stays within the average.

    As for having in-show pop up ads, ten also runs promos for those shows during regular ad breaks, so there is no substituting going on.

  2. Paul – There are content restrictions for Commercials and Promos.
    The amount of advertising content you see now has been in place since the 90’s.
    The way Ten has 2 spots in a half hour is no different to an advertiser having the same commercial in the same break.

  3. Seven just need to put on more ad breaks during their show. Instead of 3-4 mins during prime time, why not increase that to 5 minutes. They could also put some in-show ads for other products. After all, tv has become so ad-ridden now days that it can’t look much worse. (I’m annoyed at Ten most, for putting up silly Glee ads, Idol Reminders, and other ads for new shows twice per half hour show.)

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