ad tech services accc digital inquiry advertising
Ad tech and ad agency services inquiry kicks offThe ACCC is calling for feedback and information about the digital advertisingtechnology 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 advertisingand media agencies, social media platforms, website owners, app developers,and ad tech services companies.The ACCC has today released an issues paper for the Ad Tech Inquiry along withfact sheets of key questions for advertisers and ad hosts. Submissions to theissues paper are due by 21 April.“This inquiry will allow the ACCC to assess whether these advertising and adtech markets are operating effectively and, importantly, gauge whether theyare working well for a range of different stakeholders,” ACCC Chair Rod Simssaid.“We strongly encourage all interested parties to make sure their views areheard.”The ACCC wants feedback on the competitiveness, efficiency, transparency andeffectiveness of ad tech services and ad agency services. The key issues to beexplored 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 thatare most relevant to their experiences and are not expected to address everyquestion in the Issues Paper.“During our Digital Platforms Inquiry, we heard many concerns about thecomplexity and opacity of ad tech and ad agency services. This has realpotential to undermine advertisers’ abilities to choose services that providethe best value for money for them,” Mr Sims said.“It may also prevent the companies that host those ads from maximising theiradvertising revenue.”“Higher prices for advertisers means higher prices for consumers. And lowerrevenues for ad hosts could in the longer term lead to a reduction in thequality and diversity of online content.”The ACCC will also use its compulsory information-gathering powers to accessinformation from market participants that is not publicly available.“What an inquiry offers the ACCC is information gathering powers that meancompanies are legally obliged to provide us with the detailed information togo deep on these issues. We believe that online display advertising practicescertainly warrant some digging,” Mr Sims said.Further information is available at: Digital advertising services inquiry.BackgroundOn 10 February 2020, the Treasurer signed a Ministerial Direction requiringthe ACCC to hold a public inquiry into markets for the supply of ad techservices and ad agency services.This inquiry is being conducted by the ACCC’s new Digital Platforms Branch,and will build on the findings of the ACCC’s Digital Platforms Inquiry, whichdelivered its final report in July 2019.The ACCC will also work with international competition authorities such as theUK Competition & Markets Authority, which recently published the interimreport from its comprehensive ‘Online Platforms and Digital Advertising’market study.The ACCC is required to provide a preliminary report to the Treasurer by 31December 2020 and a final report by 31 August 2021.The Digital Platforms Branch has also commenced a separate Inquiry intomarkets for the supply of digital platform services.