Mediacom Findings To Cost

Mediacom Findings To Cost
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Following this morning’s confirmation of inappropriate behaviour within the GroupM-owned Mediacom group, a number of its highly-prized clients could be starting to head for the exit.

Some of the business’s biggest clients have been involved in forged ratings and being on-sold TV space that Mediacom had secured for free. The clients include Foxtel, KFC, Pizza Hut and the Insurance Australia Group (IAG).

The Australian – who initially broke the Medicom story four months ago – reported this morning that IAG was reviewing its $40million media account. The article added that the entire affair – including the audit and compensation to clients – had already cost the agency in the millions thus far.

Foxtel – whose ad spend is said to be worth around $65million – moved its account to MindShare when details of anomalies at Mediacom first surfaced in 2014.

The News Limited-owned newspaper also revealed that another of Mediacom’s clients – Energy Australia – had initiated a review. It also quoted KFC chief marketing office Nikki Lawson as saying that its TV campaigns were routinely “falsified” and Mediacom would have to pay some form of compensation to the fast-food retailer, which was “likely to take the form of a cash payment”.

Already there has been a number of compensation payouts to Mediacom clients including its big three customers – Foxtel, IAG and Yum Brands! (owners of KFC and Pizza Hut). IAG also owns NRMA,SGIO, SGIC and CGU.

 

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