News picks MediaCom as its new agency

Group M subsidiary MediaCom will work on behalf of News Corp Australia after the publisher announced it was moving on from its previous media agency UM.

News businesses Foxtel, Fox Sports and Carsguide, were already with Group M companies.

News Corp Australia’s marketing director Damian Eales made the announcement on Monday, saying the CEO of Group M in Australia, John Steedman, had approached News Corp Australia “with a compelling demonstration of the benefits associated with putting all our business under one account”.

The publisher did not invite other agencies to pitch for its business, saying that would have been “an unnecessary encumbrance on the industry.”

Group M has had a testing week. On Monday, it released the results of an extensive audit that confirmed the agency it had breached compliance requirements on three of its biggest accounts. It is understood the agency has adopted the recommendations by Ernst and Young which conducted the audit. These include the creation of an Australian compliance team which will conduct regular spot-checks and formal documentation of each transaction and booking.

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