Sales house HS3 Media closes citing weak trading conditions and shift to mobile
Publishing sales house HS3 Media has told its partners it is closing down, with all media representation services for clients ceasing on October 31, Mumbrella can reveal.
The company emailed its partners this week to announce the closure, telling them HS3 will remain trading only for the purposes of campaign reporting, invoicing, collections of monies and payments to publishers thereafter.
The media sales house launched in October 2010 and has worked with the likes of publishers: Delimiter, Australian Business Women’s Network and Anthill.
Explaining the move in an email to partners, HS3 chairman Shane Mitchell said: “In the last 12 months, there have been several factors weighing on the business ranging from weaker trading conditions, reduced buyer bandwidth, the shift to mobile by audiences, to programmatic buying.
Mitchell
“However it has mainly been the requirement of both founding partners to relocate overseas, myself last year and Andy [Corlett] this, that has forced this decision. It is also this latter reason that means we will be unable to assist you in finding an alternative representative.”
Mitchell was appointed as head of digital at Singapore media owner MediaCorp earlier this year.
The closure of HS3 follows on from the closure of sales house Ignite Media in April last year after a number of accounts, including Sound Alliance now known as Junkee Media, shifted to rival MCN. Last month saw Junkee Media take its media agency sales back in-house.
HS3 began cutting its staff numbers on September 1, however it is unclear how many staff have been let go so far.
In the email Mitchell said some staff will remain to ensure campaigns that are booked no later then September 18 are completed by October 31.
Mitchell also expressed his thanks and sympathies to those businesses whom the closure “may have a profound impact” upon.
HS3 and Shane Mitchell have not responded to multiple requests for comment.
Miranda Ward
Mitchell’s email in full:
I’m writing to you as a valued partner of HS3 Media.
Regrettably HS3 Media is closing. It will cease all media representation services for its publisher clients on 31st October 2015, and remain trading only for the purposes of campaign reporting, invoicing, collections of monies and payments to publishers thereafter.
We are writing to all advertising partners, beginning with those with active bookings and those with proposals pending. If an advertiser wishes to advertise they may only do so for bookings that are made no later than 18th September and that are completed by 31st October.
For bookings or proposal enquiries for campaigns outside of these dates, advertisers will be referred directly to you.
As a result of this decision we will be reducing staff numbers progressively from Tuesday 1st September 2015 and Cecilia will advise you of any future bookings as per the normal process.
Other staff will then remain on hand to ensure campaigns that meet the above criteria will be delivered and monies subsequently collected and paid as normal.
In the last 12 months, there have been several factors weighing on the business ranging from weaker trading conditions, reduced buyer bandwidth, the shift to mobile by audiences, to programmatic buying.
However it has mainly been the requirement of both founding partners to relocate overseas, myself last year and Andy this, that has forced this decision. It is also this latter reason that means we will be unable to assist you in finding an alternative representative.
On behalf of HS3 Media, may I sincerely thank you for all your support. We have been proud to connect premium independent Australian publishers such as you with leading companies and agencies for 5 years, and we hope we have delivered great service and value during that time.
On a personal note, I understand that our decision may have a profound impact on you. As someone who has endured tough times as a small business owner, I have deep sympathy with you if this is the case.
Yours sincerely,
Shane Mitchell
Chairman
Miranda Ward worked for Mumbrella from 2013 to 2017, eventually becoming deputy editor. Miranda joined Mumbrella in September 2013 from Sky News.
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