Tuesday 18 June 2019

Eir drops media-buying agency in low-cost drive

Xavier Niel, owner of Eir
Xavier Niel, owner of Eir
Samantha McCaughren

Samantha McCaughren

Eir, one of the largest advertisers in the country, has stopped using media-buying agencies to plan and buy all its advertising.

In recent weeks, Eir informed media companies that it would be buying all advertising directly. It had been using Dentsu Aegis, one of the country's largest ad agencies, as its media buyer.

According to industry figures for 2017, Eir spent around €9m on advertising last year, making the company the fifth-largest advertiser in the country. Agencies typically get a cut of between 2pc and 5pc of the advertising spend.

It is understood that no new staff have been employed by Eir for the media-buying functions and that the task is being taken on by staff working in the areas of advertising and marketing. Direct ad buying has already begun.

Taking the ad-buying function in-house is a radical approach in the Irish market by the telco, which has seen a change of ownership in recent months.

French businessman Xavier Niel's investment vehicle NJJ and Paris-listed telecoms company Iliad, in which he owns a 52pc stake, agreed in December to acquire 64.5pc of Eir in a deal worth €3.5bn.

In April, just after the takeover was approved by regulators, Eir confirmed plans to cut 750 jobs as part of wide-ranging cost-cutting plan.

Neither Eir nor Dentsu Aegis had any comment to make on the new advertising model, which Niel has used in other countries.

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