Foxtel moves media buying from Mediacom to Mindshare after TV ratings irregularities
Steedman
Foxtel has moved its $50m media account from Mediacom to sister GroupM agency Mindshare after “irregularities” emerged in reporting of TV ratings by the agency to a small number of its clients.
The problems relate to the post-campaign TV reports for three clients of its Sydney office – Foxtel, IAG and Yum! Brands – after questions arose over the accuracy of those figures.
In a statement today GroupM chairman John Steedman confirmed Foxtel had moved its account, and said auditors Ernst & Young were overseeing a review of practices across its four agencies Mediacom, Mindshare, Maxus and MEC. Steedman’s statement in full:
“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.”
So far, more than ten staff have left Mediacom in the wake of the irregularities.
Nothing to see here then…..
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Will EY be including a review of processes between GroupM and its agency subsidiaries as well as those of the individual agencies themselves – just wondering.
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So the EY report on all the GroupM agencies will be delivered mid Jan, but it’s already been decided that Mindshare are in the clear. Why would they not run an open and transparent pitch process?!?
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I don’t really understand what’s happened. Was the problem with the buying, the reporting or both?
Is moving to an agency really going to make a difference?
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I’m sure Foxtel are perfectly capable of deciding where their media account goes. Unless you’re implying their judgement is flawed??
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Simple Bobby T, Foxtel can’t stop advertising and in the short term it’s a great fix. Move the account out of one company to a sister company. No need to change a lot of things and allows them to function as a business. Who is to say in the long term that there won’t be a pitch.
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@Bobby T – to be fair, there is nothing to suggest that Mindshare, Maxus and MEC have any issues. EY are going in to audit Mediacom’s processes, but just to be safe they will audit the others as well for good measure. If I was Mindshare I’d be greatly annoyed to now have to sit through yet another audit when they have done nothing wrong..
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Show me one agency that does perfect post reporting other than Faulkner audited accounts. can any agency raise their hands and say “we do”??? The they need to be audited before Mediacom has to be. Not talking for Mediacom. Its just that how you train your staff to report is what has to be brought to light. So everyone can shush up & put up with it.
If an industry wide audit is done we will see who does what & how.
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@Sherlock you make a good point. An audit of Astus, Plista, Xaxis etc would be far more interesting…
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