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Channel Three owner MediaWorks has established a $ 20 million ad fund using unsold ads to provide free promotion to small businesses affected by Covid-19.
Free advertising on all MediaWorks and QMS streaming platforms will be available between May and July for small and medium-sized businesses currently trading online, as well as for community organizations.
MediaWorks is owned by US private equity firm Oaktree and Australian outdoor advertising business QMS.
MediaWorks Chief Commercial Officer Glen Kyne said Covid-19 had a “devastating” impact on New Zealand companies and that the media fund was designed to stimulate those companies and the New Zealand economy in the coming months.
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The free MediaWorks advertising fund will be available to SMEs from May to July.
“Research has shown that brands and companies that invest in marketing and advertising during a recession do better when the market improves,” said Kyne.
“We want to see as many Kiwi businesses continue and continue to grow as possible.”
In April, MediaWorks asked staff to accept a 15% pay cut.
The company has been classified as an “essential” media business, but it is believed that, like other large media companies, it has been affected by a sharp drop in advertising revenue since the level 4 blockade was announced.
Last week, the government announced a $ 50 million media package, as part of a two-stage financing plan, to help the country’s media companies cope with a huge drop in revenue during the crisis. of the coronavirus.
The main beneficiaries of that assistance, which will cost just under $ 22 million, included MediaWorks, along with TVNZ, MediaWorks, Sky Television and Maori Television.
Stuff-co-nz
MediaWorks chief commercial officer Glen Kyne Media says free advertising was not risking the company’s revenue.
MediaWorks Television received $ 3.6 million for 522 employees through the Government’s Salary Subsidy Plan.
MediaWorks Radio received $ 4.2 million for 606 employees.
Kyne said the free advertising was not putting any revenue at risk, it was using unsold inventory to support local businesses.
“This is not a group of money that MediaWorks is distributing, rather it is advertising worth $ 20 million. The government’s media aid package is a positive step, but we still have a long way to go in the coming months.” .
“Obviously there has been a huge slowdown in advertising on MediaWorks, which means we have a lot of advertising inventory available.”
