There was apparently some grumbling over finances Sunday at the general assembly meeting of the Federation of European Direct Marketing here in Strasbourg, France. During a press conference yesterday, Ivan Hodac, the group’s new chairman, downplayed the rift, which the conference’s rumor mill on Sunday characterized as “fireworks” but Hodac called “a hiccup.”
Hodac was reluctant to provide specifics and would not say whether Fedma is running at a deficit. He did say, however, that if it is in the red, it is only 2% to 3% of the entire budget.
The differences stem from the merger of the two groups that became Fedma. The two entities were Edma, or the European Direct Marketing Association (the trade group), and FDMA, or the Federation of European Direct Marketing (the lobbying group). The two merged in 1997, but operated in parallel until the following year.
“It was putting the separate accounting systems together that created openings or gaps,” said Alastair Tempest, director general of Fedma public affairs and self-regulation.
“I don’t really see it as a major problem. Every merger has some surprises,” Hodac said. “There are none that save money immediately.” He added that he hoped the financial situation would be straightened out by year end, and to “have a reasonable cushion behind us after two years.”
Fedma’s corporate membership has remained flat at about 500 over the past few years. The group will soon conduct a survey of those companies that have left it to find out why they did. Their loss has been made up by new members. Fedma also has 17 national direct marketing associations as members.
