Group M has issued a statement from CEO John Steedman in response to reports suggesting agency Mediacom overcharged clients Foxtel and KFC.
“GroupM has become aware of certain practices surrounding the reporting of post campaign rating results, confined to a small number of Sydney-based clients within our Mediacom agency.
GroupM and Mediacom have appointed EY as independent advisers to review its processes, reporting directly to our regional office. In the interests of ensuring this review is fully comprehensive, we have asked EY to include Maxus, MEC and Mindshare within the review.
As of today, Foxtel has moved its business from Mediacom to Mindshare. This was collectively agreed by Foxtel, Mediacom and Mindshare.
Contrary to industry speculation, VW is not reviewing its media buying arrangement with Mediacom.
Some news coverage has speculated that Mediacom has overcharged its clients. Mediacom denies this.
There has also been speculation relating to bonus airtime at Mediacom. We have addressed this proactively with specific clients and we have been open and transparent in all our communication with them. They are satisfied with the company’s cooperation and willingness to address the situation.
We look forward to receiving EY’s report in mid-January.
Group M and its constituent agencies are committed to acting ethically in all aspects of our business and to maintaining the highest standards of honesty and integrity. The Mediacom management has my continued support.
Mediacom and GroupM will not be making any further comment until the completion of the audit.”
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