Radio asks ACCC to check customer advertising data control by Google and Facebook

Commercial Radio Australia wants the regulator to look at any attempts that would result in a concentration of data.

NOVA breakfast radio host Ryan 'Fitzy' Fitzgerald working from home. Picture: Toby Zerna

Australia's commercial radio industry has urged the competition regulator to scrutinise Google and Facebook's control of customer data that is collected from advertising and content on digital platforms operated by radio stations.

In its submission to the Australian Competition and Consumer Commission's recently established Ad Tech Inquiry, Commercial Radio Australia wants the regulator to look closely at any attempts by the two tech giants to limit access to data in the ad tech chain that would result in a concentration of data.

“The collection and use of consumer data by Google and Facebook makes it hard for traditional media platforms to compete on commercially equal terms, both in terms of competing for the advertising dollar and establishing new business models,” the CRA said in its submission to the ACCC.

The ACCC's Ad Tech Inquiry is looking into competition and transparency issues in the digital ad market, and follows the regulator's landmark report on digital platforms last December.

CRA, which represents Nine Entertainment’s Nine Radio, Southern Cross Media, HT&E’s Australian Radio Network and NOVA Entertainment, also wants more information about the pricing of services in the ad tech supply chain. They believe digital platforms should be required to disclose elements of commission or referral arrangements that could distort pricing structures.

“CRA urges the ACCC to investigate closely whether Google and Facebook are using their monopoly positions to distort the ad tech chain by using pricing, commission, referrals or bundling structures that unfairly favour certain parties over others,” the submission said.

“It is vital that any such practices are exposed, to ensure that all media players operate on a level playing field in terms of attracting advertising revenue.

“Increased advertising revenue enables digital platforms to continue to invest, market more widely, buy up competitors and expand their monopolies and influence. In the long term, this is likely to be at the expense of Australian local media platforms and the provision of quality content.”

CRA also wants Google and Facebook to be made to use independent third parties to verify their audience reach claims in order to remove the potential for data distortion and create more transparency for advertisers.

The industry group said the tech giants use their monopoly powers to sell ads based on metrics that are “distorted, misleading and poorly understood”.

CRA said digital impressions can be created automatically when content is sent from a server and no human has seen the content, and there have been instances of double counting and a lack of transparency and consistency in methodology.

“This practice must be stopped, as it unfairly disadvantages those players who have audited, standardised audience measurement processes,” CRA said in its seven-page submission.

“The ‘walled garden’ approach to advertising metrics particularly impacts on clients likely to advertise on commercial radio, as the digital platforms’ techniques tend to be effective in persuading small to medium sized businesses, such as local tradespeople and shops. These are businesses that provide the backbone of commercial radio advertising, particularly in regional areas.”

The ACCC has to submit an interim report on the Ad Tech Inquiry to Treasurer Josh Frydenberg by December 31, and complete the investigation and provide a final report by August 31, 2021.