Apparently DOJ Not Finished With U.S. Media Buying Investigation

According to an article published by AdAge on March 25, 2019, the Department of Justice had impaneled a federal grand jury, enabling the U.S. Attorney to issue a subpoena to an unidentified “large marketer” for its media records.

This comes as a surprise given December 2018 reporting by both AdAge and Adweek that the DOJ had cleared five major holding companies.

The FBI’s investigation into U.S. media buying and transparency practices began last April as a result of a 2016 media transparency report, also known as the K2 Intelligence Report, released by the Association of National Advertisers.

The K2 report cited serious problems that went against media buying best practices and agency-client contracts.

This week’s AdAge article cites concerns among ANA member marketers over agency backlash and blacklisting should their participation in the K2 and DOJ investigations become public.

Apparently the DOJ has been working with a non-redacted version of the K2 report which contains the names of more than 40 sources that participated in the ANA-sponsored investigation.

 

Bajkowski + Partners LLC is a leading consultancy providing services to marketing and procurement teams including building in-house media planning and programmatic as well as in-house creative and production operations. For more information, please visit our website.

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Posted in Agency Audits, Agency Remuneration / Agency Compensation, Marketing Mgt, Marketing Procurement, Media Investment Management, Media Transparency.