Why the FBI is investigating media buying practices
Page 1 of 2 12 LastLast
Results 1 to 10 of 11

Thread: Why the FBI is investigating media buying practices

  1. #1

    Join Date
    Apr 2016
    Location
    Solano County, California
    Posts
    7,953

    Why the FBI is investigating media buying practices

    https://digiday.com/marketing/fbi-in...ing-practices/

    Here the FBI is Looking into Business practices at the Media outlets.

    The feds are getting ready to come knocking. On Oct. 10, the Association of National Advertising sent a letter to its members sharing that the Federal Bureau of Investigation had contacted the ANA’s outside counsel Reed Smith LLP about assisting with its investigation into U.S. media buying practices. The Wall Street Journal first reported the investigation on Sept. 27. The ANA’s letter, signed by ANA CEO Bob Liodice, suggested next steps its members can take such as consulting with Reed Smith.
    Last edited by frankberry; 10-15-2018 at 07:00 PM. Reason: Quoted too much text.

  2. #2
    Sounds like a fishing expedition to me. They're entitled to do it, and they may come up with a bite or two.

    They could just as easily revive payola investigations. Not to say they haven't already. We don't know.

  3. #3

    Join Date
    Aug 2016
    Location
    West Michigan
    Posts
    520
    Much ado about nothing just like some lawyer suing broadcasters and ad buying.

  4. #4
    Quote Originally Posted by Megatron View Post
    Much ado about nothing just like some lawyer suing broadcasters and ad buying.
    Unless you're the one paying the legal bills.

  5. #5
    Moderator/Co-Administrator
    Join Date
    Jul 2003
    Location
    SoCal
    Posts
    37,650
    Quote Originally Posted by Megatron View Post
    Much ado about nothing just like some lawyer suing broadcasters and ad buying.
    If they prove the "rebates" to agencies are real, then there are various issues... particularly if the rebates are not returned to the advertisers that employed the agencies.

    They should look at Puerto Rico, USA. The media has been forced the give rebates (called, euphemistically, "volume discounts") to agencies for the last 40 years or more. Some agencies even ask for the rebates to be delivered in cash, rather than credits on agency billing.

    The practice is real.
    www.americanradiohistory.com
    Broadcasting Magazine and Yearbooks, Billboard, Cash Box, R&R, Record World, Music & Media, Audio, Television/Radio Age, R&R, Duncan's American Radio, Popular Electronics, Studio Sound, Broadcast Engineering, db, and more.

  6. #6
    The advisory from the ANA is that all media organizations should be prepared that the DOJ will be sniffing around for anyone who might be stretching certain laws. You get one complaint, and you follow it up, and it becomes a time-consuming and expensive process. They may wait until the next AG takes office to actually begin filing charges. I don't expect it to be a problem for broadcast companies, because they aren't a threat.

  7. #7
    I know there was an issue some time back involving newspapers that inflated their subscription
    numbers by distributing large numbers of copies for free and then rolling them into their circulation stats.

    Since ad rates are set based on those numbers it amounted to a de-facto defrauding of their advertisers.

    I am guessing that the FBI suspects something like that may be going on.

  8. #8
    Moderator/Co-Administrator
    Join Date
    Jul 2003
    Location
    SoCal
    Posts
    37,650
    Quote Originally Posted by FreddyE1977 View Post
    I know there was an issue some time back involving newspapers that inflated their subscription
    numbers by distributing large numbers of copies for free and then rolling them into their circulation stats.
    This is not about ratings. It's about the way the ad agency business deals with the media, often extracting rebates that are not passed on to the agency clients who should benefit from such deals and, of course, know that media may be selected for the rebates they offer, not the effectiveness.
    www.americanradiohistory.com
    Broadcasting Magazine and Yearbooks, Billboard, Cash Box, R&R, Record World, Music & Media, Audio, Television/Radio Age, R&R, Duncan's American Radio, Popular Electronics, Studio Sound, Broadcast Engineering, db, and more.

  9. #9

    Join Date
    Jul 2003
    Location
    Knoxville, TN
    Posts
    10,952
    This reminds a bit of the FBI raid on Pilot Flying J in Knoxville, and though a different industry, it involved a rebate scheme. People are still being tried and given prison sentences over that.

  10. #10
    Quote Originally Posted by DavidEduardo View Post


    This is not about ratings. It's about the way the ad agency business deals with the media, often extracting rebates that are not passed on to the agency clients who should benefit from such deals and, of course, know that media may be selected for the rebates they offer, not the effectiveness.
    ahhh….an old-fashioned kickback scheme then.

Page 1 of 2 12 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  




     
Our Conferences
Useful Contacts
Community


Contact Us