Mediacom Admits To Forging Reports And Selling Discounted TV Ad Space

Mediacom Admits To Forging Reports And Selling Discounted TV Ad Space
SHARE
THIS



One of Australia’s biggest agencies faked campaign reports for clients an audit into the company’s business practises has revealed. Mediacom – part of the GroupM group – also sold back to clients free or discounted TV time it had been given by the three free-to-air stations.

Three of Mediacom’s biggest clients are said have been on the end of the practices, including Foxtel, Insurance Australia Group (IAG) and Yum Brands! (owners of KFC and Pizza Hut).

Revelations of untoward goings on at Mediacom first surfaced in late 2014, and, to its credit, GroupM launched an immediate investigation into the allegations using the independent auditor Ernst & Young.

The outcomes of Ernst & Young’s report were detailed to the media on Friday and made public this morning.

Of most concern was the revelation that Mediacom employees altered OzTam audience figures even though campaigns had clearly missed their targets.

The report also found that Mediacom sold television ad spots that it had been given for free or at heavily discounted rates. However, the company has admitted to the mistake and clients have reportedly been reimbursed prior to the release of this morning’s audit.

The report said that Medicom has taken appropriate “steps to deal with employees involved” and it has been reported that a dozen or more employees had left the Mediacom businesses since the allegations first surfaced.

The Ernst & Young report said it “traced reporting irregularities across a number of clients” and “confirmed that two Medicaom clients Yum! And IAG were both affected with the same campaign performance misreporting issues”.

It also “discovered three other clients that were outside GroupM’s accuracy threshold. These three clients have been identified as falling into a ‘rational or accidental’ versus the intentional category”.

The report recommended four key action plans:

  1. The establishment of an Australian compliance team – Three people have been appointed to the new created compliance team and are charged with a “specific focus on the delivery of on-going TV performance reporting, including campaign cost, TARP/audience and reach”.
  2. Contractual agreements and MBAs – Processess will be enhanced to ensure that agreements and the details of reports between GroupM and its clients are centrally stored in auditable form.
  3. Systems and process enhancement – A number of systems will be put in place to ensure that files “can only be accessed at the explicit approval of the Compliance team” and agency heads.
  4. Ernst & Young internal reviews – The independent auditor will review Mediacom’s and GroupM’s dealings every six months and has a “commitment to transparency”.

Latest News

Pooled Energy Appoints Magnum & Co And The Wired Agency
  • Advertising
  • Marketing

Pooled Energy Appoints Magnum & Co And The Wired Agency

Swimming pool electricity retailer Pooled Energy has appointed Magnum & Co and sister agency The Wired Agency to its roster, following a competitive pitch. Magnum & Co will handle Pooled Energy’s social media and PR, while The Wired Agency has been appointed to manage the company’s search and display advertising. Both agencies will collaborate with […]

Masculinity Roasted In Clever New Ad
  • Advertising
  • Campaigns

Masculinity Roasted In Clever New Ad

Think masculinity means drinking a case without chundering? Well, rediscover it (& possibly yourself) with this top ad.

by B&T Magazine

B&T Magazine
WPP AUNZ Partners With Career Trackers Indigenous Internship Program
  • Advertising

WPP AUNZ Partners With Career Trackers Indigenous Internship Program

Advertising and marketing network WPP AUNZ has joined the Career Trackers Indigenous Internship Program as part of its commitment to a diverse workforce, and the creation of opportunities that inspire excellence. As part of the program, WPP AUNZ has welcomed its first three interns: Abi-Leigh Dillon (WPP AUNZ), Amy Mccutcheon (MediaCom) and Jacinta Evans (Ogilvy), […]

Taboo Goes On A Hiring Spree
  • Advertising

Taboo Goes On A Hiring Spree

Taboo has gone a hiring spree. And when it comes to sprees, that's far better than a shooting one or a farting one.

M&C Saatchi Group’s 1440 Shuts Up Shop
  • Marketing

M&C Saatchi Group’s 1440 Shuts Up Shop

Sadly, M&C Saatchi's 1440 is no more. And chances of it being reborn as 1550 not looking much chop either.

by B&T Magazine

B&T Magazine
Luke Kelly Becomes A Partner At HBT
  • Advertising
  • Marketing
  • Technology

Luke Kelly Becomes A Partner At HBT

B&T's not sure what's with that twirly thing in the press photo, suffice to say a vortex to an alternate dimension?

Women In Media Profile: Alison Michalk
  • Media

Women In Media Profile: Alison Michalk

If B&T's Women in Media profiles were an animal they would be a gazelle or lioness, or even a lioness eating a gazelle.

by B&T Magazine

B&T Magazine
Grant Broadcasters Makes Several Changes To Senior Executive Team
  • Media

Grant Broadcasters Makes Several Changes To Senior Executive Team

Independent media company Grant Broadcasters has announced a number of changes to its executive ranks. Grant Cameron will move up to become non-executive chairman for the company, and Alison Cameron (pictured above) – currently the chief operating officer – will assume the CEO role. Dugald Cameron remains responsible for the family’s investment portfolio and is […]

Shopper Media Group Partners With Mist To Offer New Tech & AI-Driven Capabilities
  • Advertising
  • Media

Shopper Media Group Partners With Mist To Offer New Tech & AI-Driven Capabilities

Australian retail out-of-home (OOH) business Shopper Media Group (SMG) has announced a partnership with AI-powered wireless networks provider Mist. The partnership will see SMG offer new WiFi, analytics and location-based services across the company’s portfolio of Australian shopping centres. Mist currently provides WiFi and location services using virtual Bluetooth LE technology to businesses across all […]

Indy Agency This Is Flow Wins Cruiseco’s $5 Million Media Account
  • Advertising
  • Media

Indy Agency This Is Flow Wins Cruiseco’s $5 Million Media Account

Travel organisation Cruiseco has announced the appointment of Sydney independent agency This is Flow (TIF) to handle its $5 million media account. This is the first time Cruiseco has appointed an agency, having managed its communications internally. Cruiseco is the largest and broadest distributor of cruise products in the Southern Hemisphere. With a membership base […]

Women In Media Profile: Naomi Shepherd
  • Media

Women In Media Profile: Naomi Shepherd

Need a Monday morning pick-me-up? You could stand naked next to the office fridge or read these inspiring words.

by B&T Magazine

B&T Magazine
APN Outdoor Takes Off With Queenstown Airport Contract
  • Advertising
  • Media

APN Outdoor Takes Off With Queenstown Airport Contract

Out-of-home media business APN Outdoor has won the tender for New Zealand’s Queenstown Airport. As part of the new agreement, APN Outdoor has flagged extensive development plans for Queenstown Airport’s advertising assets. The new contract adds Queenstown Airport to APN Outdoor’s existing portfolio of Auckland and Christchurch Airports. The media company will hire a South […]