- In an update to a federal investigation of media-buying practices in the advertising industry, influential trade group the Association of National Advertisers says it's been contacted by the FBI for help.
- That group represents more than 1,100 different companies spending a collective $400B in advertising and marketing each year.
- The FBI had issued subpoenas as part of its look into agencies getting rebates from media outlets, pointing to the potential for ad dollars being distributed more due to "kickbacks" rather than the best interest of clients.
- The ANA has said that media owners paid rebates to agencies in amounts ranging from 1.67% to 20% of media spending, depending on the deal.
- In major ad stocks today: WPP -1.4%; Omnicom (NYSE:OMC) -1.5%; Interpublic Group (NYSE:IPG) -1.6%; Publicis Groupe (OTCQX:PUBGY) -2.6%; Havas owner Vivendi (OTCPK:VIVHY) -0.1%.
- Previously: Advertising stocks move further down on probe news (Sep. 28 2018)
- Previously: WSJ: U.S. prosecutors probing ad industry media buying practices (Sep. 27 2018)
- Now read: International Dividend Stocks On Discount - September 2018
Original article