MediaWorks fighting ad blocking, newsroom investment revealed

MediaWorks has ploughed $5 million into upgrading its newsroom and is also investing in digital initiatives to combat ad blocking, according to AdNews.

Senior staff from the company, which owns TV3 and several radio brands including The Edge, travelled to Sydney this week to present its strategy and content update to Australian advertising executives.

Chief executive Mark Weldon is quoted saying Oaktree Capital, the overseas hedge fund that owns the company, has given the green light for MediaWorks to invest an “eight figure sum” over the next six to nine months, mainly into digital.

Two weeks ago MediaWorks announced it would put all its news programmes under one name: Newshub. Roughly $5 million is being invested in an integrated newsroom and more specialist reporters in key interest areas such as health and real estate will be hired, Mr Weldon reportedly said at the event.

The former NZX boss said MediaWorks is working with US-based video hosting platform Brightcove to combat ad blocking.

“The CMS that we're building allows us to insert an ad at the server end, and what that does is it stitches it together so that adblockers view it as content and it doesn't get adblocked. That immediately gives us about a 20-25% increase in inventory on day one.”

He also said MediaWorks wants to use the data it has about consumers, saying it has 1.3 million email addresses available. It won’t sell the data but will allow advertisers to “buy against” it.

“A lot of resources” are being put into the company’s planned daily soap although MediaWorks spokeswoman Charlotte McLauchlan stressed to NBR the drama is still subject to a funding decision from NZ On Air.

Mr Weldon emphasised that programme is intended to heavily feature product placement.

“We're looking at doing things a bit differently. Nowhere in New Zealand have you ever had Tony Soprano with his can of Coke. It's been a product-free zone. That's the opposite of James Bond,” Mr Weldon said.

Radio saved the video star
MediaWorks Radio, which is understood to be keeping the business afloat while TV declines, will keep the business stable while the changes are made, Mr Weldon said.

The change in New Zealand’s radio industry surveyor as well as the methodology will bring it more in line with Australia, MediaWorks group trade marketing manager Sarah Ferbrache said, adding that it will give information on listeners’ locations.

Match Media group client director Jacqui Capel, who attended the event, told AdNews she was interested in the drama series' brand integration, mainly because this was already used extensively in the Australian market.

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