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.

Latest News

Enero Agencies Team Up To Reveal What Makes A Brand Truly Great
  • Marketing

Enero Agencies Team Up To Reveal What Makes A Brand Truly Great

Insight and strategy consultancy The Leading Edge has conducted research into what makes a brand great. In partnership with its sister Enero group agencies Hotwire and Orchard, the report identifies five specific roads that take brands from good to great to greatness. The findings reveal that brands which encompass greatness have five distinct qualities: passionate vision, a sense […]

HP & Planet Ark Help Aussies Face Up To Plastic Pollution With Monster Installation
  • Campaigns

HP & Planet Ark Help Aussies Face Up To Plastic Pollution With Monster Installation

Australia is home to some of the deadliest predators in the world. But nothing has posed a greater threat to our environment and marine life than single-use plastic. A new report by HP and Planet Ark released last week found that Aussies rate marine plastic pollution as their top concern when it comes to environmental […]

HP & Spikes Asia Announce Finalists Of ‘Young Spikes Design Competition’
  • Media

HP & Spikes Asia Announce Finalists Of ‘Young Spikes Design Competition’

Ten teams of young creatives will vie for the prestigious Young Spikes Design Competition Award at Spikes Asia 2018, a three-day festival of creativity held between 26-28 September 2018. The competition garnered 123 submissions – the most of any Young Spikes competition – from executives aged 30 and under across the Asia Pacific and Japan. […]

Director Appointment Strengthens Corporate Affairs Specialist Wilkinson Butler
  • Media

Director Appointment Strengthens Corporate Affairs Specialist Wilkinson Butler

Corporate affairs agency Wilkinson Butler is delighted to welcome Nick Albrow to join its board as a director. Albrow joins chairman Peter Wilkinson and managing director Andrew Butler as the business builds on its reputation as one of the leading crisis and issues firms in Australia. Joining in September 2017 as an account director, Albrow has […]

Mastercard Marketing Chief Sarah Pike Exits
  • Marketing

Mastercard Marketing Chief Sarah Pike Exits

Mastercard marketing boss Sarah Pike has exited. Sadly, not via a half-pike somersault with twist, but the actual exit.

by B&T Magazine

B&T Magazine
Adobe Appoints New ANZ Marketing Director
  • Marketing
  • Technology

Adobe Appoints New ANZ Marketing Director

Adobe announces new ANZ marketing 'big cheese' who's set to go by the title of marketing director and not Queen Gouda.

by B&T Magazine

B&T Magazine
Publicis Media Agencies Named ‘Leaders’ By Independent Research Firm
  • Media

Publicis Media Agencies Named ‘Leaders’ By Independent Research Firm

Publicis Media agencies Zenith and Starcom were named a ‘Leader’ and a ‘Strong Performer’, respectively, in The Forrester Wave: Global Media Agencies, Q3 2018. Both agencies were among the select companies that Forrester invited to participate in this evaluation of the media agency landscape. Zenith received the second-highest score in the ‘Strategy’ and ‘Current Offering’ […]