JPMorgan Chase Hires Auditors To Examine ZenithOptimedia Relationship After ANA Report

JPMorgan Chase Hires Auditors To Examine ZenithOptimedia Relationship After ANA Report
SHARE
THIS



American banking brand JPMorgan Chase has hired external auditors to examine its relationship with its US media agency ZenithOptimedia. The news comes in the wake of a damning report from US industry body ANA (Association of National Advertisers) that suggested media rebates were widespread among agencies in the States.

JPMorgan Chase in the US has confirmed to B&T the story – that first appeared on Business Insider – is accurate. The auditors hired for the investigation are K2 and Firm Decisions.

The Business Insider piece does not state ZenithOptimedia has done anything untoward regarding what was claimed in the ANA report, nor is B&T suggesting as such.

A JPMorgan spokesperson referred B&T to the statement sent to Business Insider: “We have launched an audit of Zenith, and have paused new work with them in the meantime. They have been cooperative, and we look forward to completing this quickly.” The examination allegedly came as a result of the ANA report.

B&T has contacted ZenithOptimedia in the US but had not heard back at the time of publication. CEO of ZenithOptimedia Australia and New Zealand, Matt James, said the audit and report has had no impact on the Australian arm of the business, and no local clients have launched audits.

A ZenithOptimedia spokesperson sent Business Insider this statement regarding the JPMorgan Chase audit: “We have a great relationship with JPMorgan Chase, with a strong partnership for more than a decade. Audits are a standard part of the business process. We look forward to a collaborative audit process and a continued relationship.”

ZenithOptimedia has held the media account for JPMorgan Chase since 2005, according to US trade media publication AdAge.

The ANA report

The ANA study came out three weeks ago, claiming media and cash rebates and non-transparent practices were rife in adland in the States.

“Advertisers and their agencies are lacking ‘full disclosure’ as the cornerstone principle of their media management practices,” said Bob Liodice, president and CEO of the ANA in a statement at the time.

“Such disclosure is absolutely essential if they are to build trust as the foundation of their relationships with their long-term business partners.

“Whether acting as agency or principal, vast changes in technology, the complex digital supply chain, and the proliferation of media outlets provided agencies with additional opportunities to increase their profit margins beyond agency fees.

“This has led to disconcerting conflicts of interest and a lack of transparency.”

Many media agencies hit back at the report, claiming it was “insubstantive” and used “subjective methodologies”.

Boss of mammoth communications network WPP, Sir Martin Sorrell, also questioned the report’s vaildity, claiming it wasn’t independent.

Lead image via The New York Times.

Please login with linkedin to comment

Latest News

Case Study: How Content Helped Tribal Marketing Come To Life Amongst Rev-Heads.
  • Opinion

Case Study: How Content Helped Tribal Marketing Come To Life Amongst Rev-Heads.

In this guest post, CEO of content marketing agency Edge, Fergus Stoddart (pictured below), says brands would do well to play on their customer’s loyal tribalism… Normally over Christmas, any downtime is spent asleep on the sofa, mildly lubricated with a belly full. This year, with the Ashes in the background, I managed to stay awake […]

Opinion

by B&T Magazine

B&T Magazine
Red Bull Holden Racing Team Unveils 2018 Cars On Sydney Harbour
  • Marketing

Red Bull Holden Racing Team Unveils 2018 Cars On Sydney Harbour

Red Bull Holden Racing team took the covers off its 2018 Holden Commodore Supercar today. Floating on a barge in Farm Cove, the harbour provided a stunning backdrop for the reveal. Teammates Jamie Whincup and Shane van Gisbergen have won the past two championships for the squad. Whincup, now the greatest of all time with seven Supercar’s titles, […]

Victorian Government Launches VR Bushfire Experience Via The Fuel Agency
  • Advertising
  • Campaigns
  • Technology

Victorian Government Launches VR Bushfire Experience Via The Fuel Agency

As part of its summer fire campaign, the Victorian government has launched a virtual reality (VR) bushfire experience and content series via The Fuel Agency. The VR experience places the user in the midst of a large bushfire, and is designed to encourage people to leave early on high-risk days before it’s too late. The […]

Local Ad Tech Company VeNA Partners With RugbyPass
  • Advertising
  • Media
  • Technology

Local Ad Tech Company VeNA Partners With RugbyPass

ad tech company VeNA has signed an exclusive reseller partnership covering Australia and New Zealand with digital rugby network RugbyPass. Across Asia and parts of Europe, RugbyPass is the exclusive digital rights holder and over-the-top broadcaster for live rugby, including the Super Rugby, the Rugby Championship and autumn internationals, the Six Nations, the Aviva Premiership, […]

SpotX Appoints Gavin Buxton As Asia MD
  • Advertising

SpotX Appoints Gavin Buxton As Asia MD

Video advertising platform SpotX has announced it has appointed Gavin Buxton as managing director of Asia to lead the company’s expansion in the region. Buxton has over 17 years’ global experience in the digital advertising space, having worked in leadership roles at tech and publishing companies, including Microsoft, Turner Broadcasting, and LinkedIn, with the last […]

Big Mobile Doubles Down On Ad Tech & Rebrands
  • Advertising
  • Technology

Big Mobile Doubles Down On Ad Tech & Rebrands

B&T Awards 2017 finalist Big Mobile has unveiled a fresh look to reflect its new ad tech credentials. The company successfully pivoted its business from ad network to mobile ad tech vendor when it announced a joint venture (JV) with Widespace in October last year. As a result of the business changes, Big Mobile wanted […]

March One Appoints New Senior Account Manager
  • Advertising

March One Appoints New Senior Account Manager

Independent ad agency March One has appointed a fresh face to the team, with Melanie Tozer to reinforce its mission to put humans first as a senior account manager. Tozer (pictured above), an up-and-coming talent from New Zealand, will align her extensive experience in FMCG marketing with March One, having worked on accounts for Bunnings […]