Online ad broker DoubleClick announced its retreat from the Asia Pacific region with the closure of its office in Sydney, Australia. The decision follows the shut-down of the group’s Latin American operations.
Said local managing director Jason Ward: “Today's decision is unfortunate and distressing but realistic, given market conditions. Advertising sales over our network led the company's growth during the initial two years but in the past twelve months the market has changed significantly”.
According to Ward, there is a glut of online advertising brokers contesting the Australian market. "We know of one ad agency [that] had dealt with forty-nine online suppliers,” he said. “You can't run a business efficiently with that many suppliers."
Rivals homed in to mop-up DoubleClick’s estimated 14% share of the Aussie market. One, BMC Media, boasts that its slice of the cake will increase by at least 25% as a result of DoubleClick’s withdrawal.
The latter, however, is at pains to emphasize that the closure does not affect its TechSolutions division, which will continue to operate both a sales and regional support center from Australia.
News source: Advertising Age - International Daily