Hands-off plea from net marketing group

By DITA DE BONI

An offshoot of the Direct Marketing Association is ready to plead against Government intervention in its proposed self-regulation of e-marketing.

The yet to be formed e-marketing council, called eM=DM (e-marketing equals direct marketing), is touting for membership from media agencies, web developers, internet service providers and e-commerce operators with the hope of establishing an industry vehicle to address challenges to e-marketers.

The first challenge has been laid down by Consumer Affairs Minister Phillida Bunkle, who has alluded to a Government review of e-marketing practices to protect consumer privacy and prevent disclosure of personal information.

Direct marketing bodies, which include e-marketing and e-commerce bodies, are accustomed to accusations of trampling on privacy rights. However, the interim chairman of eM, Lee Parkinson, says the rights of consumers are amply covered by present legislation.

Mr Parkinson, who is also deputy chairman of the Direct Marketing Association, says direct marketers are regulated by the Data Privacy Act, as well as a host of self-regulatory guidelines which cost the industry around $650,000 a year to administer.

"We [the association] have a code of conduct for members. We also give them a seal of approval if they are operating ethically and handle complaints from the public," he says. "I really believe there are no examples of unethical internet use in New Zealand.

"What I'm hoping we can do is work in consultation with the Government, the Advertising Standards Authority and the Marketing Council to examine what is in place and what existing self-regulation there is. What might be required is an analysis of areas that perhaps are not adequately covered."

So far the ministry has promised to avoid taking "direct action" if its talks with Mr Parkinson and others prove satisfactory.

Far more pressing to the industry, he says, is a shortage of web designers, programmers and strategists.

The shortage is leading to a "bun fight" with new graduates demanding salaries of up to $110,000 or going to higher-paying markets such as America or Britain.

"eM will be a voice or a body starting to look at the shortage of resources, the brain drain, and working to promote our sphere as a great career choice," he says.

"We are also looking at an annual salary survey of e-marketers, to provide a reality check and perhaps help establish salary ranges."

Mr Parkinson denies that ad-marketers are losing interest in industry bodies, and points to several companies interested in joining eM, including Air New Zealand, Glaxo Wellcome, FlyingPig, Advantage Group and Deloitte e-Business Practice.

"New media is a special area of people sort of floating around at the moment, not quite covered adequately by any of the existing structures. But they are vitally important and will be very heavily involved in the strategy of where business is going."

Mr Parkinson says most companies have some involvement in e-business offerings and will eventually use the services of a web master, new media designer, programmer, information architect or internet marketing specialist.

A survey by Deloitte Touche Tohmatsu of 279 New Zealand businesses shows 51 per cent have spent up to $50,000 implementing e-business initiatives and most plan to spend more.