ABC News: Advertisers are ‘stupid’ for not paying for adverts
The world’s most popular video-sharing site is being criticised for not being transparent about the fees paid by advertisers to display its content on its sites.
Key points:The ABC understands advertisers are paying $7.9 million for the right to appear on the ABC’s site for 30 daysThe ABC says the fees are not being disclosed on the site, which has a huge audience of 2.4 billion peopleThe ABC’s online service is not accessible to people on a mobile phone or pay mobile servicesThe ABC has asked for a briefing about the issue and the company is currently reviewing its business model, including what changes advertisers may be requesting.
Key point:Advertisers on the platform are paying for the privilege of appearing on the network, and paying fees based on the number of times they are seen.
But the ABC understands that many ads are appearing and paying for views every 30 days.
While that may seem like a lot, ABC digital editor Matthew Taylor said that “almost nothing” of this amount of money was being paid to the advertisers.
“It’s not a lot,” he said.
“They’re not paying a lot of money, but they’re making money on it.”
The ABC is currently in the process of reviewing the company’s business model.
“The ABC Digital Media group is in the midst of reviewing our business model to determine what the right practices are,” he explained.
“We’re working through that process with the advertisers to see if there are any ways that we can make the advertising on the website better and more transparent.”
In a statement to the ABC, AdChoices Australia said it paid the fees for its ads and was not aware of any changes to its business.
“While we’re committed to providing a secure platform for our advertisers, we have a duty to ensure they’re not receiving preferential treatment or preferential treatment that is not fair and just,” the company said.
In a blog post last week, the Advertising Standards Bureau said it had received complaints from consumers about how they had been misled about how much their adverts were paid.
“Advertising should be free, but it is not,” the blog post said.
“Advertiser fees are a part of the cost of doing business.”
The bureau said it would be seeking to “develop a clearer picture of how the fees work, what they’re worth and how they’re used”.
But it is understood that while AdChoises Australia has provided the ABC with a copy of the fee schedule, it has not provided the relevant information to the organisation to understand how much the company was paying to display the ads.
The ABC can reveal that AdChoys Australian chief executive Stephen White is one of those advertisers who is seeking answers about the matter.
Mr White said he was disappointed the ABC had not sought clarification from the advertising watchdog.
“There’s no reason why we can’t be transparent and share the fees we pay with the industry,” he told the ABC.
“If we’re not transparent, the industry will take it out of the hands of us.”
I think it’s absolutely outrageous that they’re still in the dark about this.
“When it comes to advertising, there’s a very simple answer, which is you pay your fair share.”
And if the media’s not upfront with the consumers and the industry, then there’s no incentive for them to be transparent.
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