IAG is the third client to be affected by the MediaCom investigation, but the agency denies that Volkswagen is investigating its accounts.
The Australian reported this morning that Volkswagen is “reviewing its accounts with MediaCom” regarding the accounting, suggesting it is the fourth client whose business has been mishandled. It followed a story in Mumbrella that IAG had been named as the third brand invovled.
It has already been reported that Foxtel and Yum! Brands had been notified by MediaCom around what has been described as overcharging, with John Steedman, GroupM chairman confirming to AdNews yesterday (1 December) that there was a third client affected. He refused to comment on which client was affected. It was uncovered by
Mark Pejic, MediaCom CEO told AdNews this morning “categorically” that Volkswagen is not being looked at specifically for irregularities.
He also declined to comment directly on IAG, calling it speculation and saying that it's between the agency and its clients.
Speaking to AdNews yesterday, IAG said it was in discussion with MediaCom, awaiting the outcome of the review and that it was “happy the agency was taking it seriously”.
Update: Volkswagen clarifed that it is not currently one of the clients MediaCom has identified as being affected but said: "We are undertaking a review with Mediacom of our accounts and will await the outcome of the review. We have been in regular contact with Mediacom since the first reports and we are satisfied with the process we have undertaken to ensure their are no irregularities."
The auto brand is also not suggesting that it is reviewing its media account - rather the accounting - as part of the Ernst and Young review taking place.
For more news:
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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