Reports in advertising trade media today, including Ad News, say that Telstra has confirmed that “all 60 positions in its display ads team,” have been made redundant as a result of the deal with MCN.
According to Ad News’ report today, a Telstra spokesperson told the publication that, while 60 of the advertising team had been made redundant, some of the affected employees who worked for its advertising network may be redeployed within the company or may be taken on by MCN.
However, as Ad News and other media have speculated, the redundancies from Telstra’s Advertising Network (TAN) give credence to industry views that the days of TAN are numbered.
As Stuart Corner, in iTWire’s specialist telecommunications industry publication, ExchangeDaily, observes today, “Telstra has finally thrown in the towel on its$636m, 2004 acquisition of the Trading Post,” and further comments: “The bold claims made by the head of the Telstra Advertising Network at its formation a year ago have come to nought with the hiving off of ad sales on Telstra online properties to MCN last week and of the Trading Post web site to carsales.com this week.”
While the deal on Trading Post still has wait on approval from the Australian Competition and Consumer Commisssion (ACCC) before it can be completed, it’s expected that it also will result in more redundancies at Telstra.