External ‘Bias’ Outed

AUCKLAND, Today: NZ advertisers can ‘shop local’ by choosing domestic media platforms, says Sydney-based James Bayes, the AUNZ GM of global demand-side platform The Trade Desk.

“The Covid-19 pandemic represents a generational shift,” Bayes says. “The global disruption the virus has caused has not been seen since World War II. With a global emergency of this magnitude, people and businesses have been impacted regardless of their sector.

“It’s not until the dust starts to settle that the less visible impacts begin to emerge. Some of the most significant change in the last six months has been in the media industry.

Even pre-Covid free-to-air television had been facing growing challenges over the last two decades, first from pay television and more recently from the increasing popularity of social media and streaming video.

“Global platforms have aggressively diversified into the traditional television and news markets, challenging the ad-funded economics of content production that have underpinned the sector for decades.

Now, with the cancellation of marquee sporting events like the Olympics and delays to local and international production, free-to-air television is in danger of losing critical ‘pull’ with advertisers.

“By contrast there has been a rise of connected television in New Zealand which has allowed for the streaming of quality local news, current affairs, drama, comedy and lifestyle programming by traditional television stations and players with increasing market share like TVNZ On-Demand and Lightbox.

“The Trade Desk partners with 17 agencies across New Zealand.”

“Meanwhile, there is potent concern within the domestic television industry that with Covid-19 accelerating audience fragmentation, advertisers will further shift the focus of their budgets toward social and online advertising.

“This would likely see millions redirected from the domestic free-to-air market toward global giants like YouTube, Facebook, Google and Amazon – millions in potential revenue spent overseas.

“Adopting such an approach will not support New Zealand’s media industry, nor does it support the production of quality Kiwi content, especially at a time when business chambers across the country, along with all levels of government are encouraging us to ‘shop local’.

“The risk for advertisers is that a heavy reliance on social media and social streaming services subjects their campaigns to the vested media interests of these global platforms.

“Rather than placing advertisements based on where data shows a relevant audience is viewing content, many global platforms will often direct advertising content toward channels they have an affiliation with.

“For example, in November 2006 Google acquired YouTube for US$ 1.65 billion.

However, by considering the alternative approach and targeting streamed New Zealand content, marketers can support the domestic industry as well as be assured their advertisements are reaching their target demographic efficiently and without the influence of external bias.

“IAB NZ estimates the local programmatic market to be valued at $ 115m in 2019, less than 10% of the overall digital market which amounted to $ 1.25b.

“Kiwi advertisers can play their part by looking at smarter options with broadcasters rather than defaulting to global media platforms.”

“But as we move inevitably toward a more data driven media environment and traditional media continues its march toward digital delivery, its imperative brand investment is allocated without bias and with full transparency to protect the funding model that underpins our local internet.

“The impact of a non-objective digital supply chain on our local publishing and content industries are simply too great.”

About The Trade Desk
James Bayes: “The Trade Desk was founded in Ventura, California 10 years ago and has been operating in Australia and New Zealand for around five years.

“The international regional office is in Sydney, Australia, and The Trade Desk partners with 17 agencies across New Zealand and we’ll be looking to get back on the ground when the world is released from the threat of Covid-19.

“The Trade Desk has already established some great working relationships with a number of New Zealand businesses.

“The Trade Desk works with all digital platforms and we aren’t incentivised to steer a brand towards our own media assets, simply because we don’t own any.

“We work with traditional broadcasters and publishers without fear or favour, with an objective approach that rewards all players fairly for their contribution to the value created.

“Importantly, with this model advertisers retain full transparency on where their advertisements are showing, why it is being placed there and what content they are supporting.

“As the Prime Minister has reminded us, the heavy lock-down response to Covid-19 and the subsequent hard slog of economic recovery could take a long time.

“During this time, it will be critical that our local media industry is supported. Advertisers can play their part by looking at smarter options with broadcasters rather than defaulting to global media platforms.”

• The ideology and strategy behind The Trade Desk’s model can be found at www.thetradedesk.com