MEDIA-I: Axe falls at BMC Media operations

<p>SINGAPORE: BMC Media has closed its Singapore and Beijing offices </p><p>and downsized its Hong Kong operations as part of broader cost-cutting </p><p>measures that have led to 36 job losses in the company globally. </p><p><BR><BR> </p><p>The workforce in Hong Kong has fallen from around 10 to two, while the </p><p>Singapore and Beijing offices each have around five staff. There were </p><p>also staff cutbacks in Australia but the Tokyo operation has been spared </p><p>because it recently signed a lucrative contract with local agencies, </p><p>including Hakuhodo, for online marketing campaigns. </p><p><BR><BR> </p><p>A spokesman for BMC Media said maintaining a presence in Hong Kong was </p><p>crucial to the company's progress in China, in particular because </p><p>Beijing would be hosting the 2008 Olympics. BMC Media had earlier sold </p><p>ad space on websites set up for the Sydney Olympics. </p><p><BR><BR> </p><p>The Australian-based firm, which competes against DoubleClick, made the </p><p>cutbacks to reduce its cash burn rate and preserve cash reserves of </p><p>A$7.4 million (US$3.6 million). The online ad firm plans </p><p>to use this money to acquire businesses that are profitable or close to </p><p>cash flow break-even, explained BMC Media chairman, Nick Greiner. </p><p><BR><BR> </p><p>The cost-cutting will reduce monthly overheads by 62 per cent he </p><p>said. </p><p><BR><BR> </p><p>Any future acquisitions will aim to reposition BMC Media as a full </p><p>service digital marketing firm, Greiner added. </p><p><BR><BR> </p><p>BMC Media also wants to take on tasks - database management and some </p><p>email marketing work - which it previously outsourced. </p><p><BR><BR> </p><p>The company is also keen to drive further consolidation in the online ad </p><p>market by acquiring competitors. The number of online advertising rep </p><p>companies has fallen dramatically this year, with Real Media and </p><p>DoubleClick withdrawing from Australia and Engage quitting its Asian </p><p>operations. BMC Media's share price has plummeted in recent times from a </p><p>high of A$7.60 early last year to A4.5 cents (US2.2 cents) last </p><p>week. </p><p><BR><BR> </p>