ACCC calls for feedback into digital platforms review

The ACCC has called on the advertising industry to provide feedback for its review into the digital advertising industry.

The ongoing digital platforms inquiry is analysing issues around the digital advertising supply chain that affect Australian advertisers, such as the dominance of Google and Facebook.

During a speech to the Australian Association of National Advertisers (AANA), ACCC CEO Rod Sims said it is estimated that more than 68 cents from every dollar spent on digital advertising in Australia is going to these two companies.

“Being big is not a sin. Australian competition law does not prohibit a business from possessing substantial market power or using its efficiencies or skills to outperform its rivals,” he said.

“But the dominance held by Google and Facebook in certain markets, plus the incentives they face, does mean their conduct should be subject to particular scrutiny to identify whether it is creating competitive or consumer harm.”

The inquiry is also examining issues including whether there is adequate transparency around transactions involving the cut of the amount paid by the advertiser for each ad impression that goes towards intermediary services.

“It is important that we better understand the issues with the ad tech supply chain because a lack of transparency means that advertisers do not know what they are paying for, where their advertisements are being displayed and to whom,” Sims said.

“We have not yet reached a view on these issues and we are continuing to examine the ad-tech supply chain to understand better how it works and how this impacts advertisers. In this we would like the advertising industry’s help, as it is clear these are issues that require close examination.”

Another issue being explored is whether advertisers can verify whether the ads they are purchasing are actually shown to their target audience.

Currently, Google and Facebook monitor the delivery of advertisements on their own platforms, although both claim to allow third-party measurement partners to verify these metrics.

“We have not yet reached a view as to whether the existing arrangements on the major digital platforms are sufficient to address the issue. This is an issue we hope to achieve clarity on before our final report in June,” Sims said.

Image credit: ©stock.adobe.com/au/arrow

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