Media: Agencies fear state-owned ad rival

Barry Soper is getting married in Parliament's historic Grand Hall. Photo / Mark Mitchell

Advertising agencies are casting a wary eye at Television New Zealand and signs that state television may be planning to cut their commissions and move into making ads.

One small agency - Spawn - has warned a new relationship with an advertorial company BrandWorld could lead to the creation of a state-owned ad agency.

But TVNZ says ad agencies are being overly nervous about change.

The broadcaster is about to announce its financial results to June 30 and is under pressure from the Government to deliver more profits.

The advertising body Caanz has warned that if commissions are cut the cost of advertising to clients will go up.

Agencies could take business to other media, said president David Walden.

Three of the four agencies approached by the Business Herald were unhappy with the commission review and other initiatives

TVNZ confirmed it was reviewing the commission structures, but spokeswoman Megan Richards said nothing had been decided.

An agency source said TVNZ was looking at cutting the percentage of commission for money spent placing TV ads from 20 per cent to 15 per cent.

The money is paid to ad agencies and makes up a large part of the sector's revenue.

Deals between advertising agencies and their clients vary enormously.

But a cut could have a big impact, particularly on some small agencies.

SMART CHOICE?

Separately some ad agencies are nervous about TVNZ's new relationship with advertorial company BrandWorld that makes Family Health Diary and the new segment Smart Choices Everyday.

TVNZ head of advertising sales Dave Walker said Smart Choices Everyday was the first of a few different projects for the broadcaster and BrandWorld.

Simon Healy of advertising agency Spawn said that under the deal TVNZ staff wrote the ads, BrandWorld executives produced and supervised the ads, and they were shot in TVNZ studios.

Under contract with advertisers, TVNZ plans and then also buys the advertising time - off themselves.

"But to hide behind the veil they invoice production and media through BrandWorld," Healy said.

Television New Zealand could not be contacted yesterday to verify Healy's interpretation of TVNZ's role in advertising production.

TVNZ has said that it had made ads in the past. It was aware of nervousness in the ad industry.

But Healy said: "This potentially has huge implications for advertisers, but especially ad agencies - of all sizes.

"It can only mean a cannibalisation of agency business, by the very industry that generates TVNZ's biggest single source of revenue.

BrandWorld is part owned by Clemenger BBDO which owns Colenso BBDO. TVNZ recently dropped its longtime ad agency Saatchi & Saatchi and will announce soon it is moving its business to Colenso BBDO.

FAMILY FEUD

Passions are running hot at MediaWorks after two clashes between its radio and television divisions. The first squabble involved Phillipa Keane, hired by radio boss Sussan Turner to produce Marcus Lush's RadioLive breakfast show. Keane is a former producer for Paul Homes, at TVNZ and Prime. Within three months TV3 poached Keane to take over from Carol Hirschfeld as executive producer for Campbell Live. A MediaWorks source said that Turner had been furious about the backroom deal, okayed by chief executive Brent Impey, and there had been heated discussions within the group.

Turner was very unhappy. She is a strong admirer of Lush and kept the flame burning for Lush to break through breakfast radio ratings. There have been one or two encouraging signs. His chats with Dean Lonergan work well, showing he is more than an alternative broadcaster. But losing Keane will not help the cause

STAR POWER

The other spat is over nine-to-noon host Michael Laws and his spirited - nay virulent - attacks over two days last week about charities. Laws' rants are grist for the mill. But TV3 was pumping huge resources into Telethon - which was its biggest marketing event - and calling for people to donate. A MediaWorks source said that corporate bosses were astonished by the tirade on its own station. But Laws is RadioLive's biggest earner for ad revenue - and you can't tell him to shut up or ship out.

PERKBUSTERS: THE GOOD NEWS FOR INSIDERS

With all the fuss over Parliamentary perks it was interesting to read recently that Newstalk ZB political editor Barry Soper and One News reporter Heather du Plessis-Allan would be wed in Parliament's historic "Grand Hall".

The Speaker of the House, Lockwood Smith, was wed there recently and at least one other Press Gallery journalist tied the knot there.

Anyway, some old journalist muckers were planning a class reunion, and I wondered about corporate rates for a knees up in the centre of our Democracy.

Alas Parliamentary Services, which looks after MPs and Parliament, said that use of the buildings for private functions was only for people who worked in Parliament, or other special people, for special occasions "like weddings or a 90th birthday". The good news for insiders - it is a perk. Free, gratis, nix - a little private perk utilised by MPs and those who work in Parliament.

The only requirement is that you have to use Bellamy's to cater for events and clean up after yourself. Soper said that he had to get "dispensation" to get the free deal. He is being paid thousands by Woman's Day for the big day, but Soper said it would still be a costly do.

GALLERY MERGER?

Fairfax is looking at a proposal to merge its three offices in the Parliamentary Press Gallery, creating a Fairfax political bureau serving all its papers. Five people work in three offices for the Press, Dominion Post and Sunday Star-Times. Group executive editor Paul Thompson said nothing had been decided but if there were changes it would occur by the end of the year. He said that changes were aimed at improving political coverage and not cost cutting.

TV HIGH FLYERS

This column usually avoids covering awards - media and marketing folk are always throwing around gongs and could fill a page with results.

But in television the annual Qantas Television Awards are a huge part of the marketing for the TV channels. TVNZ head of news and current affairs Anthony Flannery will be chuffed.

Among 33 finalists for 11 news and current affairs awards, 24 were for TVNZ and two for Maori Television.

TV3 has seven finalists in seven awards, with its current affairs show Campbell Live named in one, best camera.

TVNZ's top performer was TV One's Close Up which scooped the pool with all three finalists in categories for best current affairs reporting in a daily programme, best current affairs series, and investigation of the year. Finalists in best news and current affairs presenters were Paul Henry, Kevin Milne and Andrew Saville.

Though you have to ask if any of them are delivering news and current affairs. Henry is entertaining, but his performance on Breakfast is hardly current affairs. In any case, TV3 news and current affairs boss Mark Jennings has acknowledged he was disappointed by the number of finalists.

He said he was particularly surprised that John Campbell's coverage of Barack Obama's inauguration was not being recognised.

REAL NEW ZEALAND

Close Up does seem to be pushing the right buttons. There are too many plugs for TVNZ shows, and Mark Sainsbury is not a great interviewer, but these awards are as much about marketing as anything else.

Producer Mike Valintine has pitched the show at the heart of middle New Zealand - where a daily current affairs show belongs.

I used to be a regular viewer of Campbell Live, but wondered about the cutesie tie ups with Bro'Town.

But after the first year I drifted away because it was inconsistent. Budgets appear to have been cut and to be honest I still have not gotten over Campbell's medal thief interview.

The good news is that TV3 seems committed to the show. Maybe the new Campbell Live executive producer Phillipa Keane will get it back on track and make it required viewing.