Media: Tensions grow over TVNZ ad review

TVNZ is considering bringing Tim Wilson back to Auckland.

Advertisers have asked for Television New Zealand to "Please explain" its revamp of ad rules that some agencies believe will threaten their sector.

News of the TVNZ review on commissions was revealed in the Business Herald two weeks ago.

Since then TVNZ has been talking to advertisers and the Communications Agencies Association of New Zealand (Caanz) has warned about the TVNZ plans.

The commissions are paid to agencies when they buy time on TVNZ channels.

Meantime, TV3 is watching growing tensions between TVNZ and some advertising agencies over the way that advertising is bought and sold at state TV.

A lot is at stake.

A memo from the Association of New Zealand Advertisers says: "It is apparent that the TVNZ review covers more than commission structures and is also looking at existing pricing systems.

"We have asked TVNZ to clarify their thinking," said ANZA commercial general manager Lindsay Mouat.

Agencies less reliant on the commission system agree that it is time for change. But others say that it could undermine the agency system in this country.

The TVNZ approach, which coincides with a bigger role making advertorials, includes suggestions commissions could be abolished by this time next year.

In a memo to advertisers and agencies, chief executive Rick Ellis, who has led the review with sales boss Dave Walker, said the recession had heightened the need to adapt.

"We believe that the current system of pricing and commissions requires reform.

"We can promise you that there will be no TVNZ price increases to advertisers as a direct consequence of any changes we might make."

Agency critics - led by Caanz president David Walden - dismiss TVNZ's claim.

The review comes when there is an unprecedented fall in advertising revenue.

Ellis' memo placates the advertisers but not the agencies. He insists it is in advertisers' interests to change.

He says if commissions were to be reduced or eliminated, the full impact would be passed on to to advertisers as a price adjustment.

SPREADING THE NEWS

TVNZ is looking at bringing New York correspondent Tim Wilson back to Auckland, which might save TVNZ some money.

How much does it cost to maintain him in the TVNZ outpost in the Big Apple? Wilson is popular with news boss Anthony Flannery and has turned up often enough lately.

But Wilson says so little of any consequence - and you can't help but wish that if there was a big story they just took a feed off the BBC rather than rehash a wire story.

Television New Zealand has laid off local journalists and cut programme budgets. Yet it maintains a New York correspondent regurgitating material from American TV networks - material that I can watch live on Sky. Apparently he is a nice enough bloke - with a reputation as an intelligent writer.

But watching him on Wednesday night reporting the death of Ted Kennedy and when I heard his analysis on Barack Obama's political travails, or Michael Jackson's funeral, I wondered why TVNZ bothers with a New York bureau.

TVNZ PITCH

Hell Pizza is making a pitch to TVNZ for a reality show. It is about - what else for a youth-oriented company built on marketing - a bunch of young creatives in a competition making ads. Hell co-founder Warren Powell and marketing man Matt Blomfield say the series is part of a bid to create an ad agency for "Generation Y" 18 to 25-year-olds.

Advertising creatives working in pairs would "battle it out through a series of advertising pitches to secure a career in a brand new youth-centric agency".

Hell said the series would turn the old advertising model on its head: "No longer would 40-somethings be trying to figure out what youth wanted."

SHOCKING AYE

The pilot to be presented to TVNZ is apparently built around the Hell billboard that features - I would argue racist - copy about "brownies" eating their pets, alluding to a story about a Tongan family that barbecued its dog.

Like most "shocking aye, tee hee" publicity stunts the billboard was lapped up online, creating hits and boosting ad revenue.

Maybe the cutting-edge Gen Y humour will emerge from this ad with a follow up. I'd argue though the "brownie" ad would not just appeal to 18-25 years old. It would appeal to rednecks of all ages.

As for the "pitch", it is one of dozens that get considered each year by the networks, but it conjures up memories from the 1990s when Neil Roberts was in charge, and used an approach dubbed "Project Great New Zealand Television". With sponsors links and a Gen Y focus, the idea should speed through the commissioning process at public television.

Who knows, a series about advertising pitches could come in handy. The series would give TVNZ the chance to remove the dividing lines between advertising and programming altogether.

UPS AND DOWNS

Advertisers appear to be focusing on tried and true titles, according to magazine players approached by the Business Herald.

Magazine publishers are the same as all media at the moment - on a white-knuckle ride. They are trying to maintain editorial content and keep ad revenue up as advertisers tighten spending and consumers think twice about discretionary purchases.

The last thing you need in this market is to lose readers. Audit Bureau of Circulation figures for magazines circulation to June 30 show that, overall, magazine sales remain stable, but there have been big falls for individual titles and changes across categories.

Magazine Publishers Association executive director John McClintock said magazines with a strong subscriber base have been in a good position.

Retail sales - from the supermarket, petrol stations or dairies - are being knocked as consumers have second thoughts spending in the recession.

Like the advertisers, they seem to be opting for one title where they once might have taken two, according to one source.

Magazine Distribution company Netlink delivered its report on the ABC figures noting that circulation of food and wine magazines was up 8.3 per cent in circulation compared to June 30 last year, led by Healthy Food Guide, which was up 13.7 per cent on the year.

Women's interest titles were up by 4.1 per cent partly because of the introduction of new titles Recipes Plus and Mindfood, which entered the market in the first half.

The largest declines were in the current affairs and business category. These were down 34.8 per cent, in part because three titles - New Zealand Management, New Zealand Marketing and AdMedia - were caught up in the sale of 3Media group and dropped out of the audit.

Fairfax's NZ House & Garden was down 17.4 per cent and Cuisine down 11.6 per cent.

Fairfax's New Zealand Gardener was up 13.3 per cent while ACP Magazine's New Zealand Lifestyle Block was up 24 per cent.

New Zealand Magazines, with a smaller stable of a titles, held up well with Creme up 10.8 per cent, though New Zealand Woman's Weekly was down 4.4 per cent compared with 6 per cent for its arch rival, ACP's Women's Day.

Pacific Magazines' New Idea was down 7.8 per cent.

The biggest women's title fall was Cleo - down 25.6 per cent and Next was down 9 per cent, possibly because of the arrival of Mindfood in its market. Metro was down 18.8 per cent and was relaunched last night in its old A4 bound format.