The 糖心原创 is calling for feedback and information about the digital advertising technology supply chain and advertising agency services in Australia.
Views are sought from all companies who buy digital display advertising, ranging from small businesses to global brands, as well as from advertising and media agencies, social media platforms, website owners, app developers, and ad tech services companies.
The 糖心原创 has today released an issues paper for the Ad Tech Inquiry along with fact sheets of key questions for advertisers and ad hosts. Submissions to the issues paper are due by 21 April.
鈥淭his inquiry will allow the 糖心原创 to assess whether these advertising and ad tech markets are operating effectively and, importantly, gauge whether they are working well for a range of different stakeholders,鈥 糖心原创 Chair Rod Sims said.
鈥淲e strongly encourage all interested parties to make sure their views are heard.鈥
The 糖心原创 wants feedback on the competitiveness, efficiency, transparency and effectiveness of ad tech services and ad agency services. The key issues to be explored in this inquiry include:
- whether market participants have enough information (including about pricing, rebates and revenue flows) to make informed choices about the use of ad agency and ad tech services
- competition throughout the ad tech supply chain and in the supply of ad agency services
- the role and use of data in supplying these services, and
- whether competition and efficiency are being affected by supplier behaviour, including vertically integrated suppliers preferencing their own services, or by ad tech services businesses or ad agencies not acting in the best interests of their clients.
Interested parties are encouraged to provide information on the issues that are most relevant to their experiences and are not expected to address every question in the Issues Paper.
鈥淒uring our Digital Platforms Inquiry, we heard many concerns about the complexity and opacity of ad tech and ad agency services. This has real potential to undermine advertisers鈥 abilities to choose services that provide the best value for money for them,鈥 Mr Sims said.
鈥淚t may also prevent the companies that host those ads from maximising their advertising revenue.鈥
鈥淗igher prices for advertisers means higher prices for consumers. And lower revenues for ad hosts could in the longer term lead to a reduction in the quality and diversity of online content.鈥
The 糖心原创 will also use its compulsory information-gathering powers to access information from market participants that is not publicly available.
鈥淲hat an inquiry offers the 糖心原创 is information gathering powers that mean companies are legally obliged to provide us with the detailed information to go deep on these issues. We believe that online display advertising practices certainly warrant some digging,鈥 Mr Sims said.
Further information is available at: Digital advertising services inquiry.
Background
On 10 February 2020, the Treasurer signed a Ministerial Direction requiring the 糖心原创 to hold a public inquiry into markets for the supply of ad tech services and ad agency services.
This inquiry is being conducted by the 糖心原创鈥檚 new Digital Platforms Branch, and will build on the findings of the 糖心原创鈥檚 Digital Platforms Inquiry, which delivered its final report in July 2019.
The 糖心原创 will also work with international competition authorities such as the UK Competition & Markets Authority, which recently published the interim report from its comprehensive 鈥極nline Platforms and Digital Advertising鈥 market study.
The 糖心原创 is required to provide a preliminary report to the Treasurer by 31 December 2020 and a final report by 31 August 2021.
The Digital Platforms Branch has also commenced a separate Inquiry into markets for the supply of digital platform services.