![]() ![]() ![]() All media plans identify these products clearly for client approval and clients decide whether to participate or not.” All clients who buy these products are carefully appraised of these terms and conditions and sign a specific contract before buying them to acknowledge their agreement. “Any profit or loss that GroupM makes from this sale is kept confidential under the products’ terms and conditions of booking. On programmatic buying, Steedman said that GroupM shoulders the financial risk on delivering guaranteed outcomes of audience deliver through its Xaxis trading brand. ![]() GroupM also moved to clarify its position on the markups that surround programmatic buys, and media credits, two focal points of discussions. “Where these additional discounts arise, we will – in conformity to our policy – make sure that these advantageous pieces are invoiced to clients at the price at which the agency will pay the media owner and any client specific bonus airtime provided by media owners is passed on to the respective clients at zero cost,” he said. The clients were refunded the money they were charged in November, but Steedman would not be drawn on the value of those refunds.Ĭlients received the airtime they wanted – but it was in breach of GroupM’s policy to charge for it.įrom now on, new procedures and controls are being put in place to make sure it doesn’t happen again. It’s not illegal but it’s against the ethics of our company and not acceptable.” He told AdNews: “Value bank on selling – it was a situation that was against the ethics and regulations within GroupM Australia – no on charging of value banks is allowable. The policy is that value banks should never be monetised for the agencies gain. In a statement given to AdNews, Steedman outlined GroupM Australia’s policy on value banks – “the additional discounts secured over and above normally negotiated media rates – either in the form of advantageous client prices and/or bonus airtime” - had been breached. The admission comes out of the independent Ernst & Young audit being carried out over the past two months, but the clients have not been identified. MediaCom has admitted that on four instances over the last two years, value bank inventory has been on-sold to clients – against its own guidelines. ![]()
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