Media agencies are preparing for a damning report that is expected to reveal they are collecting media rebates from vendors in deals brokered in the US.
An eight-month Association of National Advertisers probe is predicted to shed light on the scale of kickbacks that media agencies receive when they buy media, Ad Age reports.
This is likely to include non-transparent practices such as rebates and overselling data and services that have minimal value. The 'non-transparent' services are mainly linked to agency holding companies rather than the agencies themselves.
The report is unlikely to name or shame, but could call into question trust between clients and agencies over what they are charging.
One media executive told Ad Age the report is going to give the agency industry "another black eye" and "further erode trust".
In response, GroupM and IPG denied any wrongdoing while Publicis Groupe said it could not comment until it had seen the report.
The report is expected to be released this week.
Keep an eye on AdNews for more on the report as it breaks.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.