Mediacom audit: Media Federation says there are no wider industry problems and no need for tighter regulation
The boss of the Media Federation says the media agency trade body has no plans to issue its members with a tightened code of behaviour in the wake of Mediacom’s revelations that some clients were misled on campaign performance.
“We are not a regulator,” Sophie Madden, CEO of the MFA told Mumbrella. “This is a highly competitive industry, we are not a regulator but we take the code seriously and we believe our members take them seriously.”
The MFA’s code of behaviour – shown in full below – sticks to general principles such as “do the right thing”.
Madden said that the MFA has no role to play in addressing the issue of value banks, where agencies accumulate bonus airtime from media owners based on volume of business put their way. She said: “This is a competitive industry but we are not privy to how each of members manage their commercial operations but we can’t regulate it, nor is it appropriate to.”
Asked if the MFA thought that problems identified at Mediacom could be present at other agencies, Madden replied: “No we don’t. We believe our members are committed to our values and principles outlined in the code of practice.
“In terms of transparency being an issue for the industry we have sent out today of codes of behaviour that members sign up for. There is the code that is what everyone signs up for when they join the MFA.
“What is important for the industry is that we abide by honesty and trust. Individual contracts with agencies is not something we can comment on.”
Mediacom, and its fellow GroupM agencies are all long term members of the MFA.
Asked whether the issue could raise questions of client trust in media agencies as a whole, Madden claimed: “There is a danger but clients who work with MFA members can be assured that they industry professionals who are providing expert services and and acting in their best interests as per the code of behaviour.
“There are going to be learnings that come out of the review and that will serve to strengthen the industry in future.”
Nic Christensen
In depth:
- TV misreporting issues explained
- GroupM’s value banks admissions and what they mean
- Marketers seek compensation over misreporting as IAG mulls review
- How GroupM is tightening its practices
- The debate the media industry needs to have
The full MFA statement:
The Media Federation of Australia (MFA) today welcomed the release of findings by independent auditors Ernst and Young into aspects of Media Communication Agency Mediacom’s TV campaign performance reporting and accounting processes.
The review was commissioned by Group M after certain practices regarding the reporting of post campaign results on some client accounts within its Mediacom business were brought to its attention.
MFA CEO Sophie Madden said we applaud Group M for taking the necessary steps to address the issues identified at Mediacom, in order to reflect the MFA codes of behaviour.
“Our Code of [Behaviour] requires our members to act professionally, honestly and to always provide clients with advice that serves their best interests,” Ms Madden said. “The transparency of the independent review process initiated by Group M was fully supported by the industry.
“The reputation and integrity of the media buying industry as a whole is shaped by individual actions of all of our member businesses, regardless of size or market share. “Group M took the responsible and necessary approach of engaging external audit specialists to examine client account issues that were brought to its attention. “
A copy of the MFA Code of Behaviour are attached:
MFA CODE OF BEHAVIOUR
Play fair. Respect your competitors; compete on merit and encourage keen and vigorous competition. Be fair; don’t poach staff with less than 12 months’ experience. Don’t discredit others.
Value your people. Place a high value on recruiting, developing and retaining talent. Invest in their continued learning. Leave room for family, friends and fun.
Do the right thing. Don’t break or bend the law. Don’t go looking for loopholes. Follow your good conscience and demonstrate self-regulation. Comply with all IP rights laws.
Be transparent and trustworthy. Always act professionally. Give clients honest, unbiased advice that serves their best interests. Act impartially and independently in the provision of services. Conduct business in a socially responsible manner.
Be honest. Stand up for what you believe is right, and encourage others to do the same.
Create an open and trusting environment with colleagues, clients and suppliers. Keep your word. Respect confidentiality.
Uphold and build our reputation. Respect the values and standing of the MFA and its members. Do not disparage other MFA members.
Sophie has an opportunity to drive the industry in a better direction with increased transparency and regulation. Instead they decide to keep their head in the sand and continue with the smoke and mirrors and deny there maybe anything wrong.
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Weak response… as if nothing happened.
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Given the fact this story was published at midday today, I am amazed that there has been only one comment in the two hours since it was posted.
Sophie has just demonstrated what a joke the MFA code of behavior is.
Given that Group M has just undergone an audit of all of their agencies, wouldn’t every other agency also want to stand up and undergo the same scrutiny just to further validate the claims being made by the MFA?
Well done to John Steedman for standing up and bringing an external party in to verify this was an isolated instance.
To me the, the silence is deafening as to what could lie beneath. The fact we haven’t seen a public statement by any other agency to say yes we will do the same for the credibility of the industry.
If nothing further happens independently, I would suggest revising the code to require a level of external audit across all members each year, It would be very interesting to see who stays a member and who cites some flippant excuse to hand in their membership.
I think the MFA is too scared to ask the question every client wants reassurance on.
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What really lies beneath.
My comments were made at 1.00pm and 1.02pm but apparently are still under moderation…….too inflammatory perhaps for this forum?
Perhaps I should copy and paste all to LinkedIn?
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Nothing to see here……move on…..
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I beg to differ Sage Observer, this whole thing is a massive car crash that was waiting to happen.
Now it has, some of the industry are expressing shock, disgust and horror, the rest are turning their heads away and hope that it hasn’t happened.
The recriminations of this are very serious and could threaten the entire existence of the largest media buying group in Australia, hundreds of jobs, and the long & hard earned reputations of some the industry heavyweights.
I can’t believe Martin Sorrell isn’t involved in this yet, although knowing him he probably is behind closed doors….
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Paddy, chillax!
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I was inferring in my 3;22pm post that that was the MFA’s attitude to the events that have unfolded.
Clear now?
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Then we are in complete agreement Sage Observer. My apologies for having missed your subtle inference.
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To think that this stuff has only gone on at Group M is, to my way of thinking, naïve in the extreme.
In the same way, do you really think that the deplorable acts being uncovered at Knox Grammar are isolated to Knox? Highly unlikely.
“The Media Federation says there are no wider industry problems and no need for tighter regulation”.
What a disgrace.
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Sophie, this is really disappointing. Perhaps the wettest and floppy reply you could have possibly given. Media and media agencies are completely on the nose. They need strong leadership to help them – not this kind of drivel.
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A pathetic response from the MFA, though maybe it’s due to the pressure from some on the board that are terrified of the spotlight being turned onto their own agency. Everyone in the industry knows this goes on, along with a host of other questionable activities that clients in the vast majority, have no idea is going on. At some point it’s all going to come crashing down. Those who know they should be doing more are just hoping they get out before it blows up.
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Hey Paddy…. you have commented on every single Mediacom article.
I think you need 5mins on the bench!
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Reading this statement from the MFA, I am reminded of “Comical Ali”, the Baath Party media spokesman from the first Gulf War.
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Lazy and subservient
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Bypass MFA. The agency that gains and services the account in its terms of business includes the facility for the client to see an independent media auditor’s compliance report, funded by the agency, every quarter.
Its like a rego check for media operators. And a big bloody stick.
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if it walks like a duck, squawks and preens like a parrot in a gilded cage, then it’s probably a f@#$%d up bird – sounds like some of these media agencies.
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