SEPT 2009 - TVNZ’s Decision Announced. Industry-Wide Changes to Come?
Posted: 25 September 2009
TVNZ has announced its decision to reduce the commission paid to agencies by 10%, effective from 1 January 2011. These changes differ from proposed plans and have been reached after consultation between TVNZ and Industry Associations (including NZMA, ANZA - and led by CAANZ).
The NZMA stands in a unique position, with a broad and diverse member base including agency, media and client-side organisations, and must work to represent all parties fairly. Sue McCarty, Chief Executive, NZMA says “While we understand the commercial realities driving TVNZ’s changes and their imperative to review their commission structure, it is our responsibility to ensure that the intent of these changes is upheld. We need to monitor, invite feedback and provide support to our member base alongside other Industry Associations.”
McCarty adds “Based on TVNZ’s responses to questions raised during consultation with them we understand that TVNZ are reviewing the major disparity between the rate card value of their inventory and what advertisers actually pay, and it is likely that TVNZ will reduce the cost of the inventory together with a corresponding reduction in discounts. We have been assured by TVNZ that this will not increase the cost of advertising.”
The NZMA believes these changes have the potential to affect marketing budgets and allocation of marketing spend, as well as the commercial relationships and arrangements between agencies and clients, for the vast majority of members as a result of the possible knock-on effect on other media.
The NZMA will now communicate TVNZ’s decision to its member base and invite wider industry feedback. Your feedback on these changes is important – to help Industry Associations assess the impact of these changes and what support is required to ensure we maintain a vibrant industry with a healthy level of competition across agency and media organisations of varying sizes and areas of specialisation. Feedback can be provided to the NZMA by posting your comments on the Marketing Agencies Council Blog or by emailing Sarah Hastie.
Full details of TVNZ's announcement are available here.
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