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

Shell & HSBC Launch Global Agency Reviews
  • Advertising
  • Media

Shell & HSBC Launch Global Agency Reviews

Going with ‘new year, new me’ theme, Shell and HSBC are looking to freshen up their respective media businesses.

by B&T Magazine

B&T Magazine
Comexposium Takes Over NZ Partner MTS To Become Largest Trans-Tasman Events Group
  • Marketing

Comexposium Takes Over NZ Partner MTS To Become Largest Trans-Tasman Events Group

Marketing events group Comexposium has absorbed its New Zealand joint venture partner MTS to deliver an expanded event solutions business across the Trans-Tasman. The deal will see Ryf Quail (pictured above) return to Sydney to lead Comexposium Australian and Kiwi team, while his current MTS team remains in place as Comexposium employees. While the business […]

Eyeota Kick-Starts 2018 With $15.6 Million In Additional Funding
  • Marketing

Eyeota Kick-Starts 2018 With $15.6 Million In Additional Funding

Audience data provider Eyeota has announced a $15.6 million Series B capital raise to spearhead additional growth in 2018. The company was founded simultaneously in Singapore, Australia and Europe in 2010, and has remained independent and enjoyed strong growth locally, as well as launching into the US. Peter Hunter (pictured above), Eyeota’s general manager for […]

Poem Wins Four New Clients
  • Marketing

Poem Wins Four New Clients

Sydney-based PR and social agency Poem has announced it has won four new clients following another strong year of growth. The four clients are Property NSW (The Rocks and Darling Harbour), Fantastic Furniture, Ovolo Hotels and Purpose (a conference on purpose-driven business). Poem co-founder Matt Holmes said: “We’ve hit a nerve with clients who are […]

Facebook Makes Another News Feed Change
  • Media

Facebook Makes Another News Feed Change

Social media behemoth Facebook has announced its second major update for News Feed to make sure the news people see, while less overall, is high quality. This week, Facebook announced that the platform will launch a small test in the US focused on prioritising news from publishers that users find trustworthy. Facebook is also exploring ways […]

Attention! B&T’s Inaugural Bootcamp Launches!
  • Advertising
  • Marketing
  • Media
  • Technology

Attention! B&T’s Inaugural Bootcamp Launches!

B&T announces its new industry bootcamp! And, if you're like us & didn't know anything about it, all's revealed here.

by B&T Magazine

B&T Magazine
Domain Boss Antony Catalano Exits
  • Media

Domain Boss Antony Catalano Exits

Mystery surrounds Domain boss's surprise exit, although the Mystery Machine nor a talking dog not spotted at Fairfax.

PHOTOPLAY Offers A Ghost Train Ride Like No Other At Sydney Festival
  • Media

PHOTOPLAY Offers A Ghost Train Ride Like No Other At Sydney Festival

Jasmin Tarasin, director at boutique production company PHOTOPLAY, is inviting invites audiences to take a trip through the inner-workings of the mind in ‘Ghost Train’, her latest multi-sensory VR project set to feature at this year’s Sydney Festival. Working in collaboration with musician and co-creative director Jonnine Standish, Tarasin’s uniquely immersive ‘Ghost Train’ is a […]

March One To Rebrand Fundraising Institute Australia
  • Marketing

March One To Rebrand Fundraising Institute Australia

Independent advertising and branding agency March One has been appointed to oversee the rebrand and repositioning of Fundraising Institute Australia (FIA). FIA is the national peak body representing professional fundraising in Australia. It was established to advance advocacy and professional standards, and has identified the need to better promote its role as the industry self-regulator, […]

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, […]