What will the ACCC investigation into the outdoor sector unearth?
The Australian Competition and Consumer Commission has launched an investigation into the outdoor advertising sector, to assess whether the use of rebates and discounts are in breach of the Competition and Consumer Act. Mumbrella’s Zoe Samios unpacks the potential consequences for the industry.
When Mumbrella broke the news the Australian Competition and Consumer Commission had launched an initial investigation into the outdoor advertising sector to look at its use of rebates and discounts, commentary swiftly began:
“Wowee!! That’s my box opened up right there!,” one user calling herself “Pandora” wrote.
The ACCC has raised concerns over rebates and discounts in outdoor advertising
Selling OOH 101
1. Start with a hyper inflated rate card
2. Give at least 80% discount, because agencies are KPI’d on % level of discounts they get from the media
3. If necessary, make production commission-able.
4. Give agencies 2 versions of the plan, one without commission on production for their clients. One with it for them.
5. Give further discounts, bonus billboards, movie tickets and other incentives if you can get 100 % of the buy.
Well it’s not just agencies taking incentives, there are other models out in market calling themselves specialists hugely benefiting from this.
In an industry rife with “the boys” doing the deals, who could wag the biggest Willy at deal time – it was only a matter of time before it all surfaced.
Too little too late? Let’s wait and see.
I’m sure there are a lot of nervous individuals who are hoping it all disappears as quickly as the mergers took place!