$5m iiNet ad blitz

Perth-based internet service provider iiNet is poised to spend more than $5 million on an advertising blitz in Sydney and Perth in a bid to significantly increase customer numbers.

iiNet will launch a television, radio, print, outdoor and cinema advertising campaign on April 15.

It is the first campaign in the group’s long-term major advertising strategy.

Managing director Michael Malone told WA Business News the company intended to spend between $6 million and $7 million each year “sustaining the brand.”

While details of the creative are under wraps until its launch, Mr Malone said he wanted to position iiNet as a credible alternative to industry heavyweights Telstra and Optus.

He said the ISP wanted to develop a stronger brand in the Sydney market, where prompted awareness was much lower than in Western Australia.

About 70 per cent of the campaign’s funds will be spent on the Sydney market.

But Mr Malone said iiNet would also invest in advertising in Perth to build on its recognition in its home market and drive further growth.

iiNet has room for about 60,000 additional broadband customers on its existing network, or about one third of its current capacity.

Mr Malone said the biggest growth in customer numbers was expected to come from Sydney, where it had more than 40,000 broadband customers.

iiNet was aiming to attract between 50,000 and 60,000 customers across Australia by December, which was nearly double its usual growth.

The company had historically gained between 25,000 and 30,000 customers every six months.

iiNet will also continue to roll out more broadband infrastructure so that it can service more customers.

Mr Malone said the company would spend between $5 million and $6 million on the advertising blitz between April and June.

Perth advertising agency Meerkats had been appointed to develop the campaign’s creative following a national tender process.

Mr Malone said the business was now focused on attacking growth after picking itself up from a disastrous 2005-06 following a series of internal accounting flaws.