Tourism Australia media review hit by strong Aussie dollar
From Mumbrella
The strength of the Australian dollar and changing global economic conditions has applied the brakes to the $180m Tourism Australia media review, with a decision not expected until at least the end of May.
A recommendation for a media buying agency – which is a four-way race between MediaCom, OMD, Carat and ZenithOptimedia - has been made to the tourism minister, according to a source close to the process. However, changing market conditions have prompted TA’s marketing department to revisit their choice, as they decide whether that agency is strong enough in tourism markets less affected by a strong dollar.
“The market is moving and TA is having to think on the run. If the markets that were originally a core focus become less of a priority, this impacts the media spend needed in these markets. Which affects the ability to confirm the winning agency,” said the source.
Tourism Australia marketing executives have been visiting the competing agencies in key markets such as China, US, UK, New Zealand, Japan and Korea, to ensure the agencies have the right services – which includes social media and search as well as traditional media – and staff in place.
“In a volatile tourism market, you’ve got to get it right,” the source added. “You have to think about what the world look like in 3-5 years’ time. Will the winning network be able to ensure consistent delivery in that time?”
From Mumbrella
