By DITA DE BONI
The country's first media-buying website looks destined to close after its Asian parent withdrew funding for the operation.
XS-Media, launched with great fanfare at the end of last year, introduced the world of media buying to the world of the internet in a pitch designed to streamline
the buying of media space. But the venture appears to have lost the support of its Southeast Asian backer.
Now, 90 per cent of the operation's New Zealand staff have gone, leaving only three on board, including local general manager Scott MacDonnell. But he is leaving too - for Italy in just over a month.
Speaking to the Business Herald yesterday, Mr MacDonnell said the operation's funders had not given XS-Media enough time to work.
"I feel a little sad that [the site] did not get the time it deserved. Online [media buying] is definitely going to happen - it's just a question of by who and when.
"I feel sorry if people think the site is closing down because of a failed business model, because that's not true."
Mr MacDonnell said that although the site had registered 1000 users, he could not judge the success of its buying function as it had only started a few weeks ago and now looked set for extinction.
While some media buyers had criticised the site for trying to automate a process that usually required strong customer relationships, Mr MacDonnell said the site needed time to educate the market.
"We required another 12 months to establish a change in the marketplace.
"But the international funding took a back pedal and without [that] we could not continue to operate as we were doing."
The site would either close down or "go into hibernation" until September, he said.
"But I repeat, if it is not us, someone else will be doing this here at some stage."
