In this op-ed, Enth Degree boss Graham Webster questions whether junkets for media buyers are appropriate.
You will probably recall that Barry O’Farrell lost his job as NSW Premier in 2014 for overlooking the fact that he had accepted a $3,000 bottle of wine from Australian Water Holdings executive Nick Di Girolamo in 2011.
This came to mind recently when I realise that there will be a conga line of media buyers heading to the Paris Olympics, with all expenses paid courtesy of some large media suppliers.
These are the same media buyers that will be “negotiating” with their hosts on their return.
Many of these attendees are the same people who play both sides of the fence, arbitraging time and space to offer their client opaque “savings”.
Am I the only one who sees a conflict? It can cost a Premier his job in 2014, but continues to be acceptable in 2024’s media world.
I will declare that I too was the beneficiary of media largesse when I worked as a media buyer – Olympics, America’s Cups, Margaret River “market tours”, Melbourne Cups, etc. The 80s were notorious for their excesses.
Did it sway impartiality? Of course I would argue ‘no’, but as a poacher turned gamekeeper, I now see it for what it is – an opportunity to curry favour and eke out a couple of extra share points.
There isn’t a major sporting event, concert or musical that isn’t attended by this same conga line in the name of “forging good partnerships with the media”.
While buyers can’t see a problem, many of their clients can. Marcoms teams from some of Australia’s largest advertisers are not permitted to accept “gifts” from suppliers – but their agencies can.
As marketers’ budgets tighten and the cost to reach audience escalates, one wonders who really benefits from this excessive entertainment. I am in no doubt that it is to the media’s fiscal advantage. Why else would they do it?
Speaking of playing both sides of the fence, I was interested to hear from multiple sources that some consultants seem to think it is acceptable to work with marketers to find the most suitable agency partner, and then accept payment from those same candidate agencies by offering training and/or advice to give them a better chance during the pitch process.
Surely this is a conflict of interest also. As my business partner Peter Coffey says, “it’s only a rort if you’re not in it”.
Graham Webster is the CEO of the marketing management consultancy Enth Degree.
