Issues in relation to the contract and proposed solution options (ABC Media)
The issues that are related to the ABC Media contract are identified as the technological change, convergence and new competition that continue to generate unpredictable events everywhere in the media sector. The ABC is also established to be faced off with additional uncertainty and solely depend upon funding decisions that are yet to be decided upon their approval or at least disclosed by the government. ABC Media is in the middle of the most recent triennial funding agreement. This agreement was made back in the year 2013. The agreement is identified to have a year and a half to be put into action. However, it’s very rare for the ABC’s budget to be cut while the triennial funding agreement is at its middle. The fact about ABC’s budget is that it has been cut and more cuts are expected in the following years.
Developing a range of options
In the meantime, the ABC Media fraternity continue to develop a range of options to deal with the already known issues and come up with contingency plans to encounter what is not still known. The proposed solution options are:
i. Efficiency: ABC Media will be focused to lower the budget in real terms and more than 1400 fewer staff will be appointed to man the five ABC TV services. In this regard, efficiency is no longer a nightmare to ABC Media however, it is in the organizational DNA.
ii. Future audience focus: ABC Media is intended to remain an audience-focused, content-driven media organization.
iii. Reinvestment: there is a continued check-up with ABC’s current content spend to trace where funds could have been saved, freed up to reinvest where it is more needed. The expenditure on television and radio is to at its minimum cost and spending are to be maximized on online and mobile and not just focusing more on content but also on the capacity to deliver services demanded.
Importance of meeting the advertising campaign schedule.
By meeting the advertising campaign schedule specific objectives are met. This includes;
i. Increasing sales of a product that is currently introduced
ii. A branding campaign to build on build on brand awareness, its favourability, and familiarity.
iii. Launching a new product
iv. Promotional campaigns to increase sales by offering a seasonal discount.
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