Media Agencies Slam Transparency Report Claiming Widespread Rebates
A report coming from the States claiming media rebates and non-transparent practices are widespread among the US media buying landscape has ruffled a large amount of feathers among media agencies.
A number of media agencies have come out swinging at the report, claiming it’s “insubstantive” and was based on “subjective methodologies”.
A number of big brands have also released their own statements, citing concern of the findings, as have industry bodies.
The study released by the National Association of Advertisers (ANA), the US industry body, claims there’s a number of non-transparent practices going down in Adland in the form of media rebates.
The study cited a number of instances of non-transparent practices and pressure on senior agency execs from higher up.
Below are the statements we have so far, some sourced from AdAge and Business Insider. B&T has contacted a number of media agencies in the Australian landscape for their take on the report. We’ll update this story as we hear back.
Dentsu Aegis Network
From Jerry Buhlmann, global CEO
Today’s ANA Report (June 7th) is an insubstantive report with subjective methodologies and anonymous input. The business practices referenced in this report do not exist within our US business. Our media buying process is robust and transparent for our clients, is subject to rigorous compliance processes and all our clients have the ability to audit us. Furthermore, we pride ourselves on our focused and extensive efforts on compliance policies, practices and controls.
GroupM
From David Grabert, director of global communications
The ANA report and the objectivity of its authors and advisors needs to be examined carefully. The report should not be allowed to tarnish the entire industry, nor every company in it. As we stated from the outset of the ANA’s exploration, GroupM does not seek, nor accept rebates or hidden revenues in any form from media partners in the U.S.; nor do we accept service fees from vendors that are not disclosed to clients. GroupM is straightforward with clients concerning our proprietary media products and the value they provide; clients always exercise an informed opt-in to participate. As we’ve already indicated, we insist that the ANA share any specifics relating to our group with us so that we can ensure continuing contract compliance. If clients have any questions, they should contact us.
Omnicom
We have not yet had a chance to fully review the ANA study, however based on the overview provided in the press release we believe that the key findings — neither quantified nor qualified, and based on a small sampling of unnamed sources — do not accurately portray how Omnicom’s agencies work on behalf of our clients; in so doing, it does not serve the best interests of the clients that the ANA purports to represent.
As we have said since the ANA first launched its study last year, we believe that trust and disclosure are the cornerstone of every client relationship. This means that all of our U.S. media agency clients receive all value negotiated on their behalf in the form it is received. Compliance with each individual client contract has always been central to that trust at Omnicom – as is transparency in the structure and execution of each contract.
Publicis
Had the ANA been willing to have an open dialogue with our industry, we would have been immediately ready to cooperate, as we did last year, and that is reflected in our engagement with the 4A’s. By refusing such a dialogue and choosing a sensational approach, it seems clear that the ANA is not trying to find a solution to the alleged problems, and instead is acting with other goals in mind.
The ANA has failed its members, advertisers, agencies and the entire industry by releasing a report that relies on allegations about situations involving unnamed companies and individuals to make broad, unsubstantiated and unverifiable assertions.
Australian Association of National Advertisers (AANA)
From Sunita Gloster, CEO
Any best practice guidelines or initiatives that emerge are likely to have universal application, so we will aim to share them with our members here. Every advertiser’s contractual relationship with its media partner is unique and commercially and competitively sensitive. Individual advertisers therefore have the primary responsibility to ask the right questions of their agency partners so that they can be reassured that there is transparency. The role the AANA can play is to help equip members with the basic framework that is a prerequisite to obtaining transparency.
Whilst the US report reminds advertisers to remain vigilant, it is important that we remember these principles of transparency, disclosure and fairness are central to the reputations of all parties involved. Equally importantly, adherence to these principles is crucial to achieving our common goal which is to show the link between advertising and business growth. Businesses need to have confidence in the integrity of their media spend allocations.
From Matt Tapper, chair
Advertisers are ultimately responsible for ensuring they are appropriately equipped to put in place agreements and processes that deliver fair value to all parties involved. The need for transparency in media buying is not a new issue. It is a perennial challenge, one that will only get more complex. New media platforms and technology developments mean new trading arrangements are springing up all the time. This US report is a timely reminder that advertisers cannot be complacent about these conversations.
World Federation of Advertisers
From CEO Stephan Loerke
Transparency has long been considered a critical issue by WFA and remains a priority for its members. We welcome the findings from the ANA and will continue to address the challenge globally, not least in emerging markets where transparency problems can be more acute.
Advertisers should take the lead in addressing the challenge but WFA also believes in, and calls for, global cross-industry collaboration to find answers. That’s why we have been conducting systematic dialogues between media agencies and clients around the world to better understand the issues and ultimately try and engender greater trust in the marketplace.
Unilever
From Luis Di-como, senior vice president of global media
Trust and transparency are critical to any relationship, so we take the ANA’s findings very seriously. We support its work to ensure that as the media industry evolves these values remain a top priority.
At Unilever, we are actively engaged with our agencies and the industry at large to exert greater control and responsibility around media transparency. We go to great lengths to make certain that our proprietary procedures and policies maximise our investments and fulfil our contracts, in both the letter and spirit. We’re confident the right steps will be taken to strengthen our industry.
Proctor & Gamble
We appreciate the ANA’s diligence to study media transparency practices, particularly as technology is bringing a significant transformation in the industry. As a result of the study, it’s important that advertisers and agencies work together appropriately to deal with the changing media ecosystem.
At P&G, we want and expect strong agency partnerships based on mutual trust, transparency and teamwork. We have a “trust but verify” approach that includes having clear and thorough stipulations in our contracts, regular audits on performance, and third party verification that ensures transparency. If we find irregularities, we will take remedial action.
Please login with linkedin to comment
100th employee Advertising Standards Bureau ana ana report Is He Asahi media rebatesLatest News
Scroll Media Recruits Costa Panagos From Twitch
Digital publisher network Scroll Media has employed ex-Amazon Twitch gaming executive Costa Panagos (lead image) to strengthen its Scroll Gaming capability. Panagos is highly experienced in game advertising and media sales professional with two years in account management at Twitch and three years in media sales at News Corp, so will bring his extensive media agency […]
Year13, Microsoft & KPMG Australia Launch AI Course For Gen Zs
School-leaver service Year13 has launched a new Artificial Intelligence course to upskill young people in AI, made in collaboration with Microsoft and KPMG, at an event to rally industry support behind youth AI fluency. The free online course AI Amplified which is part of Year13’s Academy aims to provide all young people with the opportunity […]
General Motors Snares Heath Walker From Scania
General Motors has announced the appointment of Heath Walker (lead image) as the new marketing director for GM Australia and New Zealand, effective April 23, 2024. Walker brings a wealth of marketing and communications experience gained from working across various industries, including IT, sporting, and auto – notably Tesla, Nissan and most recently, Scania in […]
VML Launches New “Envoyage” Brand For Flight Centre
VML unveils new brand for travel operator Flight Centre. Alas, no sign of those paid actors pretending to be pilots.
Subaru Places Media Account Up For Review
Subaru puts media up for review, as adland journos get set for mandatory "agency drives off with..." headline.
TV Ratings (17/04/2024): Contestants Faced With Harsh Realities As Alone Australia Heats Up (Or Cools Down)
Alone still doing the business for SBS. Overly long train journeys not doing the business, but they persist anyway.
Ben Fordham Loses Number One Spot As Ray Hadley Celebrates 156th Ratings Win
The radio numbers are in! Discover who's off for a boozy lunch today & who's waiting for the dreaded HR death knock.
Gourmet Ice Cream Brand Connoisseur Launches New “Thrill Your Senses” Iteration, Via SICKDOGWOLFMAN
Rattling the old "truth in advertising" adage comes this ice-cream spot full of noticeably thin people.
Paramount’s Global Sales Boss: ‘Australia’s Converged Model Is A Blueprint For How I’d Like All Of Our Markets To Be’
Paramount's global sales boss gives local sales ops the thumbs up. Didn't weigh-in on the Lisa Wilkinson debacle.
TikTok Starts Testing Its Instagram Rival In Australia
In exciting news for piano playing cats & brattish pranks in shopping centres, TikTok unveils its Insta rival plans.
Man Wrongly Named By Seven As Bondi Killer Hires Lawyers
Struggling to save for a house deposit? Why not get wrongly identified by Sunrise!
Smartsheet Appoints Indie Agency Sandbox Media To Its Media Account
Can't stand your colleagues? Like to dob them in when they miss a deadline? These work management platforms are ideal.
Boss Not Letting You Come To Cannes In Cairns? Use This Business Case To Convince Them!
Stingy boss won't spring for a ticket to Cairns? Add this to your persuasive argument repertoire. Or grovel.
Alt/shift/ Brisbane Builds Portfolio With Ausbuild Creative, PR, Content & Social Account Win
The Brisbane comms/PR agency lands constructor Ausbuild. Also hoping for a discount on its new glass conservatory.
Young Guns Versus The Old Guard: Who Adds More Value to Our Industry?
Cannes In Cairns poking this hornet's nest in a lively debate. Just so long as the oldies can get up the stairs.
70% Of Aussies Don’t Have Green Power Plans ENGIE Says In Major Brand Campaign Via HERO
Are you the notorious "light leaver on-er" in your flatshare? Quell any infighting with this green energy news.
PrettyGood Launches Offering Brand & Media Solutions For Australasian SMEs
B&T applauds the charitable nature of this new agency. Although we'd hate to see it impact any Chrissie present sends.
A Blunt End: Dolphins Medicinal Cannabis Sponsorship At Risk
Yes, it's another NRL drug story. Yet, thankfully it doesn't involve coke in Kuta during the off-season.
Slew Of New Creative Hires At Leo Burnett Australia
Ahhh, all black! The outfit of choice for agency creatives, David Jones staff and everyone in Melbourne.
Under Armour Unveils Local “Live in UA” Campaign
American apparel brand set for yet another tilt at the Aussie market, as Nike declares "we'll see about that".
Pepsi Launches New Look, Refreshing Classic Fashion Staples Via Special PR
Are you always the bridesmaid, never the bride, as the old saying goes? How do you think Pepsi feels?
Pure Blonde Returns To A Place Purer Than Yours In New Campaign Via The Monkeys
B&T's always been a huge fan of the 'drink yourself thinner' diet plan. So big thanks to Pure blonde, vodka & tequila.
Spotlight On Sponsors: Carsales Strikes With Another Storm-Based Team
Think our hacks are living their sports journalist dreams vicariously through B&T? Confirm it with this reporting.
Commission Factory & AGL Energy Ignite Strategic Partnership To Empower Australian Energy Consumers
Concerned by global warming yet ran the fans non-stop over summer? Add to the guilt with this read.
Allied Nabs Nicola Gold From Pico International Dubai
Seasoned marketer relocates from Dubai to Sydney. Says the shopping's not as good but at least you can get a drink.
Nine’s Push For Gold, Silver & Bronze Ad Opportunities Could Break New Ground In Broadcasting
Nine insists that AI won't dominate its Olympics coverage. And not merely because Bruce McAvaney doesn't understand it.
TV Ratings (16/04/2024): Toxic City Girls Too Much For Farmer Bert
Fans calling out toxic behaviour on Farmer Wants A Wife, seemingly unaware that's the very premise of any dating show.
Kaimera Wins Afterpay ANZ Media Account
Have couriers even started to mention you're overdoing the online shopping? Probably best to avoid this Afterpay news.
Industry Reacts: Stuff Group Swoops In To Save 6pm News After Newshub Closure
As you'll read here, New Zealand's media's in a right state of flux. And nor have they forgotten 1981's underarm.
a2 Milk Launches “Only a2 Will Do’ Brand Platform In First Work From BMF
A2 milk drinkers tend not to bother everyone with their gut health issues & it's a lesson for vegans & the gluten-free.
Can You Recite It In Under 4 Seconds? Maccas Relaunches Iconic Competition With Modern Twist
Do you know what would make a fantastic ad? Drunk people at 3am trying to recite the ”two all-beef patties"
‘Liar, Liar’: Lehrmann Exposed As High Profile Defamation Case Comes To A Close
Having exhausted all avenues in his defamation case, is there only one option left for Bruce - reality television?
MECCA & Fendi Among Premium Advertisers For oOh!media Woollahra OOH Network Launch
If you've not been to the snooty suburb of Woollahra, the locals would like to thank you again for staying well away.
Yahoo Academy Announces Class Of 2024
This academy is strictly for "emerging leaders". Courses don't include 'sleeping at your desk' or 'bunking off early'.
Top 35 Media Leaders Announced For 2024 TikTok Agency Accelerator Program
Despite the ban threats, TikTok keeps marching on. Cementing its reputation as the Julian Assange of the tech.
AiMCO Announces First-Ever Diversity Webinar To Explore Inclusion In Influencer Marketing
Think influencer marketing's a little on the white side? This free webinar's for you. Sadly, it's not given TV ideas.