Enth Degree

Posts Tagged "media negotiation"

April 15An Article in The Australian on 27th April entitled “FTA Networks unite against GroupM” (Darren Davidson) opens with the statement that “The CEOs of the three main commercial networks have launched an unprecedented attack against the biggest buyer of television airtime in the country, warning WPP’s GroupM to stop talking down the free-to-air TV industry or face ­serious consequences in advertising negotiations.”  

It goes on to explain that … “the row has erupted weeks before GroupM thrashes out deals for the 2015-16 fiscal year to determine the share each network will get from an estimated $1bn annual budget. (GroupM) has questioned the cost of TV advertising, citing audience declines and cheaper alternatives like digital advertising. But the networks could offer more favourable TV ad rates to GroupM’s rivals, and give them first option on coveted ad spots in live event programming such as the State of Origin series and AFL grand final.”

 While this article needs to be recognised as a shot over the bow of the GroupM juggernaut by the networks as they commence annual group negotiations, it highlights a number of issues.