Competition watchdog the ACCC today launches its investigation into the opaque operation of advertising technology and whether brands get value for money.
The focus will be on whether marketers get enough information to understand how effective ad dollars are when using ad agencies and other adtech services.
“This inquiry will allow the ACCC 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,” says ACCC Chair Rod Sims.
“We strongly encourage all interested parties to make sure their views are heard.”
The ACCC wants feedback on the competitiveness, efficiency, transparency and effectiveness of ad tech services and ad agency services. Submissions must be made by April 21.
The key issues to be explored in the inquiry:
- 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.
- 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.
“During 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’ abilities to choose services that provide the best value for money for them,” says Sims.
“It may also prevent the companies that host those ads from maximising their advertising revenue.”
“Higher 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.”
The ACCC is due to report by the end of this calendar year.
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