Foxtel has moved its media business from MediaCom to Mindshare in the wake of the reporting irregularities identified last week.
The move was "collectively agreed" by Foxtel, Mediacom and Mindshare, according to a statement released by GroupM chairman John Steedman today.
The agency network is in the midst of a full review that has been extended to all GroupM agencies; Maxus, Mindshare and MEC.
The full Ernst & Young audit is due in mid-January.
The full statement is below:
A statement from GroupM Chairman John Steedman
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.
GroupM 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.
For more news:
MediaCom confirms IAG under investigation, denies VW
Rogue traders: how MediaCom’s dynamite exploded
MediaCom: What now - will a raft of agency audits kick off?
MediaCom exits linked to Foxtel and KFC overcharging
Raft of sudden exits hit MediaCom
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