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Digiday: Wall Street Shrugs at Agency-Transparency Report

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Stocks for Omnicom, IPG and WPP all closed slightly higher at market close Tuesday, underlining how difficult it is to really quantify the impact of the Association of National Advertisers report that found that non-transparent practices existed in many corners of the media agency landscape.

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Forbes: Will The Advertising Payola Land Some Madison Avenue Honchos Behind Bars?

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To understand the ramifications of the investigation by the Association of National Advertisers into “non-transparent” practices by agencies, one has go back 30 years to 1986, at the start of the agency arms race. Needham Harper Worldwide, BBDO International and Doyle Dane Bernbach merged to create Omnicom Group, the largest advertising company in the world. Saatchi & Saatchi, previously No. 1, countered by buying Ted Bates Worldwide, thus becoming the world’s largest agency again.

Read More Forbes: Will The Advertising Payola Land Some Madison Avenue Honchos Behind Bars?

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Associations Now: Advertisers’ Report Puts Extra Scrutiny on Transparency Issues

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A new report released this week by the Association of National Advertisers makes some bombshell claims about how agencies and media buyers are using rebates and other means to receive kickbacks. Ad agencies, along with the group that represents them, responded fiercely.

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Wall Street Journal: CMO Today – Ad Business Rebate Study Rocks Industry

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The highly anticipated Association of National Advertisers report looking into rebates and other nontransparent practices in the advertising business finally dropped on Tuesday, and it’s threatening to really sour the rosé ahead of the annual ad confab in Cannes this month.

Read More Wall Street Journal: CMO Today – Ad Business Rebate Study Rocks Industry

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Cincinnatti Business Courier: Cincinnati Ad Agency CEO Calls for Disclosure of Firms that ‘Violated Client Trust’

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Jim Price, CEO of Cincinnati-based Empower MediaMarketing Inc., wants the Association of National Advertisers to reveal which ad agencies allegedly took kickbacks or volume rebates from media companies at the expense of advertisers.

Read More Cincinnatti Business Courier: Cincinnati Ad Agency CEO Calls for Disclosure of Firms that ‘Violated Client Trust’

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Wall Street Journal: Ad Business Full of Nontransparent Practices, Study Finds

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The Association of National Advertisers said its probe of the advertising business found that rebates and other nontransparent practices are “pervasive” in the U.S., raising alarms about how ad agencies conduct business throughout the industry.

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The Drum: ANA Media Rebate Fallout – Why Marketers Now Need to Take Ownership of their Media Strategies

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The Association of National Advertisers (ANA) investigation into rebates has exposed a worrying imbalance between the murky levels of governance, accountability and oversight applied to media budgets. The pressure is now on senior marketers to wrestle back some control of media management from the media agency.

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The Drum: WPP, Publicis and IPG slam ‘sensational’ and ‘inflammatory’ ANA report

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“Short-sighted”, “inflammatory” and “unsubstantiated” – the world’s largest holding companies have some strong words for Association of National Advertisers (ANA) as they try to distance themselves from the damming 58-page report into the long-running issue of agency rebates.

Read More The Drum: WPP, Publicis and IPG slam ‘sensational’ and ‘inflammatory’ ANA report

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AdAge: Q&A With Investigator Behind ANA Media Rebate Report

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Rich Plansky, exec managing director of K2 Intelligence, led the ANA’s investigation into agencies’ alleged collection of media rebates in the U.S. He talks to Ad Age about the process, and what was unique compared to K2’s other investigations.

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AdAge: Agency Groups Attack ANA Report Alleging U.S. Rebate Collection

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Agency groups are disputing claims in a new report from the Association of National Advertisers that they’re collecting rebates, including “cash rebates,” and that “other non-transparent practices” are pervasive in the U.S., at least within their own organizations.

Read More AdAge: Agency Groups Attack ANA Report Alleging U.S. Rebate Collection