Australian regulator approves ‘federal’ digital advertising network for $15bn,but details still to be finalised

Posted October 03, 2019 07:19:53A federal regulator has approved the national digital advertising market for $10bn, with a finalised list of providers to be released by the end of the year.

Key points:The ABC is the first media organisation to be given approvalThe Australian Communications and Media Authority (ACMA) will set up a national advertising networkThe new network will be a national pay-per-click platform, with paid search, adverts and social media capabilitiesThe ABC has a national broadcasting licence that expired last yearThe decision by the Australian Communications Commission (ACC) to approve a $15 billion digital advertising system is likely to spark controversy as it marks the start of the Australian Broadcasting Corporation’s (ABC) national advertising licence.

Key highlights:The Australian Competition and Consumer Commission has already made recommendations for the creation of a national digital marketThe ABC will be given a new licence to operate on its own digital platform that will allow it to operate in the new national advertising marketThe ACMA will set the list of national advertisers for the ABC to be approved for the new scheme, which will be based on the latest digital advertising data available.

The ABC was initially given a licence to run national digital ads for the 2017-18 financial year, which expired last December.

But the ABC failed to secure an Australian Broadcasting Commission (ABC) approval for the program, which was due to be launched on Monday.AACC chair Greg Medcraft said the decision was not a reflection of the ABC’s performance.

“We’ve had a number of inquiries from organisations around the country, and there is some concern about whether the ABC has done enough to ensure it has met the requirements of the new commercial broadcast licence,” he said.

“The fact that it is now being approved by the commission is a further affirmation that the ABC will continue to be the go-to source of local advertising for Australians.”‘

Not a bad deal’The ABC’s chief financial officer, Greg Martin, said the ABC was “fully committed to delivering the Australian people with quality, local advertising”.

“The Australian public has confidence in the ABC, and we are determined to deliver the best local and international news and current affairs coverage available,” he told the ABC.

“Our digital advertising platform is an important step towards ensuring this.”

The ABC also has a local broadcast licence which expires next year, but it is likely that the current contract will be extended for another three years.ABC managing director, Robyn Anderson, said she hoped the ABC would be able to continue to offer a “broadcast-first” model of content.

“It’s about delivering content that Australians want to watch and enjoy, not one that is only about advertising,” she said.

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