Marketer body AANA will ‘share findings’ of US media agency transparency report with members
The main Australian marketer industry body has conceded that a new US transparency report is “globally relevant”, but stopped short of committing to implementing any of its findings locally.
Gloster: ANA report is “globally relevant”
Overnight the US advertiser association, the Association of National Advertisers (ANA) released part two of its controversial transparency report, which recommended stringent new rules be put into place which would force media agencies to open up their books for auditing, as well as the creation of a chief media officer to manage relations for brands.
Responding to the report Sunita Gloster, CEO of the Australian Association of National Advertisers (AANA), said: “We welcome any recommendations that aid and benefit transparency in media advertising. The need for transparency in media buying is not a new issue and it is one that requires ongoing attention from advertisers.
“Although these recommendations have come out of the US, it is clear that they are relevant globally, so many businesses may find the guidance useful.”
The AANA was strongly criticised by marketing consultant Darren Woolley after the release of the first report, which found non-transparent practices around media rebates “pervasive” in the US.
Woolley has questioned a “lack of leadership” on transparency
Woolley accused the AANA of a lack of leadership on the issue and questioned if the AANA had a conflict of interest, as one of the few marketer bodies in the world that allows media agencies to also be members.
Today’s comment did not address the recent stoush but the AANA statement did note that it “is committed to helping its members address any transparency issues they may be facing with their media advisers”.
The marketer body said it also “made available to its members a range of tools and guidance, including from the World Federation of Advertisers, to enable them to establish a best practice that suits their operations.”
However it stopped short of saying it would implement the guidance with its members, saying instead it would “monitor how the US and other key markets respond”.
“What is key for advertisers is to be able to make informed decisions and the ANA recommendations form part of a wider mix of guidance for advertisers to draw from,” said Gloster, in today’s statement.
“Advertisers are ultimately responsible for ensuring they are able to put in place processes that give them fair value and transparency, and in talking to our members we also recognise that every advertiser’s contractual relationships are unique and commercially and competitively sensitive. We will certainly be sharing this report with our members.”
It is unclear whether the unprecedented action in the US will lead the AANA to overhaul its 243 word “transparency framework,” which it issued last year in the wake of a scandal which engulfed GroupM and its agency Mediacom around ‘value banks‘ as guidance for its members.
In contrast, the ANA in the US, working together with intelligence firm K2 and Ebiquity’s Firm Decisions auditing firm, has now published hundreds of pages on the topic of media rebates and transparency, with the most recent being last night’s 36-page guide to ways marketers should structure their arrangements.
Among the ANA’s recommendations in this latest report was that media agencies should be forced to declare all “conflicts of interest” and allow clients “thorough audits” which cover not just the agency but subsidiaries and parent companies.
The UK has also moved on this issue, preempting the US report by cracking down on “value bank” related practices in the UK with a new 50-page template contract.
In the statement, Australian body the AANA said: “It will review the recommendations in more detail with its members and monitor how the US and other key markets respond.”
The AANA response in full:
The report out of the US today highlights recommendations to help advertisers seek to establish greater levels of transparency over how their media budgets are being spent, and to increase accountability for advertising results.
Sunita Gloster, CEO of the AANA, said: “We welcome any recommendations that aid and benefit transparency in media advertising. The need for transparency in media buying is not a new issue and it is one that requires ongoing attention from advertisers. Although these recommendations have come out of the US, it is clear that they are relevant globally so many businesses may find the guidance useful.”
The AANA, which consists primarily of Australia’s leading advertisers, is committed to helping its members address any transparency issues they may be facing with their media advisers. The AANA has made available to its members a range of tools and guidance, including from the World Federation of Advertisers, to enable them to establish a best practice that suits their operations.
“What is key for advertisers is to be able to make informed decisions and the ANA recommendations form part of a wider mix of guidance for advertisers to draw from. Advertisers are ultimately responsible for ensuring they are able to put in place processes that give them fair value and transparency and in talking to our members we also recognise that every advertiser’s contractual relationships are unique and commercially and competitively sensitive. We will certainly be sharing this report with our members,” said Ms Gloster.
The AANA will review the recommendations in more detail with its members and monitor how the US and other key markets respond.
