Business & Finance

AdNews October 2016

AdNews is Australia’s oldest and most reputable advertising, marketing and media industry publication. Published monthly except for January, AdNews covers each of the industry’s many diverse sectors including marketing and advertising, media, research, sales promotion, digital, direct marketing, design and creative through breaking industry news, case studies and in-depth special reports.

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6 Issues

in this issue

2 min.

Trust is a big deal and it’s being shaken. The recent scandal that has enveloped Dentsu Inc in Japan isn’t exactly a surprise to anyone. Everyone knows the Japanese media market is a very murky world indeed. Its opaqueness is well documented and the control Dentsu Inc has there is quite staggering. It’s hard to imagine similar ownership structures here. The transparency train has reached Japan and the repercussions will be mighty. More than 100 clients are affected and the first to emerge was Toyota. A client relationship that goes back decades and one so deeply engrained with the agency that some have said it was difficult to see where Dentsu’s team ended and Toyota began. If an agency can so knowingly rort a client with which it has the deepest of connections…

1 min.
diageo’s $20 million investment in ‘sexy’ premixes

Diageo has shifted the focus of its marketing and dropped $20 million on campaigns to support the launch of four premix drinks. The company wants to make the $2.3 billion ready-to-drink category “sexy again” with new products under its Bundaberg Rum, Gordon’s, Smirnoff and Pimm’ brands. The move echoes a wider shift in the industry towards products low in alcohol and sugar to appeal to increasingly health-conscious Australian consumers. Both Heineken, which launched Heineken 3, and CUB are also leveraging the market demand for healthier options through new products and marketing. Of the $20 million investment from Diageo, $10 million is backing the latest Bundaberg product, Lazy Bear. The product is designed to take on beer and put the Bundaberg brand front of mind for men looking for a new…

1 min.
facebook inflates video views

Facebook has copped some deserved flack after it emerged it had been over-inflating the average time spent watching video on the platform by as much as 80% for the last two years. It has fuelled further debate around the 'black box' practices it and other digital platforms operate and put the platform's measurement integrity into question. Facebook is often criticised for 'marking its own homework' by not allowing third party verification of its metrics. “The danger is that these digital publishers can cut the numbers whatever way they like in their favour. It just lacks integrity,” one agency head of digital told AdNews. Jason Tonelli, chief digital and technology officer at Publicis Media, says: “Our broader concern is that publishers do not act to allow us to use our third party partners to…

1 min.
overcharging scandal rocks japan’s most powerful agency

Dentsu Japan has apologised and reimbursed JPY230 million (A$3 million) to more than 100 clients over “suspicious” digital transactions. The scandal, first revealed by AdNews before making global headlines, initially surfaced when key client Toyota questioned billings from Dentsu's performance-based digital business DA Services and Links. After receiving an inadequate response, Toyota began a broader sweep of billings while Dentsu launched its own internal investigation and went public with the findings. Dentsu’s chief executive Tadashi Ishii admitted the agency had overcharged 111 clients in 633 transactions. The problems include discrepancies of advertising placement periods that may or may not be intentional, failure of placement, and false reporting regarding performance results or achievements. It also includes incidents where "invoices did not reflect actual results, resulting in unjust overcharged billing". The scandal has tarnished the reputation…

1 min.
google brandcast

Google went big with its annual Brandcast event to hammer home the message its online video network is serious competition to free-to-air television. It upped its focus on the effectiveness of its video content offering and the network's ability to capture the attention of audiences. It claims 72% of people aged 18-54 now watch YouTube content at least once a week. Google ANZ MD Jason Pellegrino focused on how YouTube content is becoming more influential and how the platform can deliver for brands saying: “YouTube is home to the audiences your brands are looking to meet and you can’t reach them on TV alone. For brands reach and frequency are always the starting point of campaign planning, but attention has to be the goal. The ability to generate attention is what…

3 min.
mla spring lamb you never lamb alone

There are few creative properties in Australia that have the resonance and consistency Meat and Livestock Australia (MLA) has. Partly, it's because the brand taps into national pride each year with its Australia Day campaign, but also it's a brand that each time it hits our screens aims to stand for something. It has a history of marketing leaders who back bold, creative work. The latest work from the MLA for lamb sees the organisation and creative agency The Monkeys tackle the much talked about issue of the year — diversity. It's an unusual association for meat products but the brand and its agency chose to tackle this issue because it epitomises what lamb stands for under its 'never lamb alone' positioning. It has gained notoriety globally and more creatives have voiced…