SCA pushes back on media agencies driving carbon agenda, eyes bigger slice of TV budgets for audio as inflation rises, reach tails off – and FMCG advertisers are getting the message

Southern Cross Austereo Chief Sales Officer Brian Gallagher has some contrarian views on the big push from agency groups to have media owners meet ESG and carbon neutral benchmarks as part of their annual ad deal negotiations. He also argues media buyers might be a little lost in the haze of numbers when audio platforms like Spotify bundle overall podcast audience numbers, which include SCA shows that Spotify can't commercialise. Gallagher says there's widespread misconception that they can. On the flip side, SCA Head of Ad Product, Jonathan Mandel are buoyed by the continuing surge of digital audio listening. At a market level, 9.4 million people are tuning in every week into the digital channel – the same number as broadcaster BVOD audiences. Mandel says there are major reach gains to be had for advertisers that take a slice of TV budgets: “If you're investing into a BVOD campaign, the studies we have developed show that if you put 15 per cent of that budget into digital audio, you can increase your reach and the overall reach curve by an additional 40 per cent.” Gallagher says the message is landing: “We've got FMCG advertisers onboard that have never advertised on radio before. I’m talking seven-figure commitments.”See omnystudio.com/listener for privacy information.See omnystudio.com/listener for privacy information.