Japanese ad giant admits to overcharging more than 100 clients
Tokyo-based advertising giant Dentsu has acknowledged that it overcharged more than 100 clients after it conducted a month-long investigation into its own financial records. The probe turned up at total of 633 business transactions that warranted suspicion -- worth about $2.3 million overall. In some cases, its agency properties charged fees for ads that were never placed. There were also instances in which a campaign's performance was exaggerated in order to hike up the price. It's not clear which of Dentsu's clients were affected, but the holding company said in a statement that it had contacted and apologized to each of them. It also vowed to refund the sum in full. Most of the dubious dealings -- which the company refers to as "inappropriate operations" -- centered on Dentsu's digital ads business. The company is responding by setting up a separate group to bring more independent oversight to the process. "In order to ensure that human errors or inappropriate operations in digital advertising will be prevented and detected, in early September we transferred operations to verify the specifics of advertising placements, publications and billing to a separate section which is independent from the section previously responsible for such operations," a spokesperson said in a statement. Dentsu said it found no evidence that its overall business performance was affected by the irregularities. The company launched its investigation in mid-August, not long after America's biggest advertiser trade group, the Association of National Advertisers, published a study accusing U.S. ad agencies of using secret business arrangements like "rebates" to sweeten deals without clients' knowledge. While American ad execs have sworn off such dealings, surveys show these arrangements are common practice in other parts of the world, including Japan and China, which boasts the highest level of rebates. A report from an international brand trade group, the World Federation of Advertisers, found the Chinese and Japanese ad markets to have some of the lowest levels of transparency in the world. The ANA's report also highlighted the many conflicts of interests that have arisen as the global advertising industry has consolidated into just a handful of holding companies. Dentsu, which owns a mix of media properties, media buying agencies, media wholesalers and creative outfits at every level of the advertising assembly line, is much more prone to these entanglements. "[It's] not a set-up which lends itself well to transparency," the WFA's researchers wrote in its 2014 report. The inefficiency these incentives may create always comes at the expense of the clients, who ultimately foot the bill. The admission came after an Australian ad trade began reporting on over-billing at Toyota, one of Dentsu's biggest clients. Japanese media soon picked up the story, causing Dentsu's stock to dip, and the holding company was forced into a mea culpa. "We sincerely apologize to our esteemed advertisers, the parties concerned and our shareholders from the bottom of our hearts for causing concern and trouble," a Dentsu spokesperson wrote. The company said Friday's release included just its preliminary findings; it plans to continue the investigation in months to come.
相关推荐
-
Cyrix: Gone But Not Forgotten
-
Cheong Wa Dae unveils new, detailed criteria for ranking officials
-
Main opposition fires back in NIS fund scandal
-
Biden does not intend to meet with North Korean leader: White House
-
Wordle today: The answer and hints for August 27
-
Kim calls for unity with China against 'hostile forces'
- 最近发表
-
- 21 College and University Museums
- Kevin Durant will not be visiting the White House with the Warriors
- SpaceX reveals cause of September explosion
- "Massless" carbon fiber battery doubles as a structural component
- Yoon approves labor minister's appointment
- 大假收尾 大家收心 “节后综合征”需及时调整
- 创文明服务窗口 做文明人办文明事
- 当“CBA选秀状元”陈国豪遇上揭阳“村BA”市级决赛
- 多措并举优治理 绘就幸福新图景
- [Newsmaker] Australian police detain Korean woman indicted on producing child abuse material
- 随机阅读
-
- How to watch 'Kinds of Kindness': When is it streaming?
- Facebook data for 533 million users leaked in 2019. It's still out there.
- New Star Wars film might include Princes Harry and William
- Google Home will now play free Spotify accounts
- Top 10 Tech Pranks
- 大熊猫与雅安相依相守
- Google Home will now play free Spotify accounts
- Six Flags parks will wisely stop flying Confederate flags
- Giant dual
- Stolen 'Diablo' fan art is being used as a symbol of Ukraine's fight against Russia
- What will happen to 4 million dumped Samsung Note7s?
- Prosecutors raid home, office of opposition bigwig over NIS fund scandal
- Supercritical geothermal power: Limitless promise or impossible dream?
- You'll need to be trained in self
- Zuckerberg shrugs off concerns about Instagram for kids
- “中国最美风景县” 我市宝兴县暂列西南第五
- Yes, big spiders are spreading in the U.S. No, they're not flying.
- [Newsmaker] Australian police detain Korean woman indicted on producing child abuse material
- France wait for Mbappe to return
- Horde of Nintendo games and collectibles sells for $20,000
- 搜索
-
- 友情链接
-