Problematic Markets

OVERVIEW

China’s media market for 2024 was valued by GroupM at around $200 billion USD.

There have been recent prosecutions and criminal convictions of individuals working in the media sector in China, many of which have not been reported in the press. These have all involved the misuse of significant amounts of advertisers’ media budgets. India and Brazil present problems of their own for advertisers and are both top 10 markets. Bribery, corruption and fraud whilst misusing media funds present real risks for advertisers. The risks are made greater by lack of financial transparency, contract non-compliance and absence of supervision by parent companies.

CREDENTIALS

Actively engaged in advising on contract non-compliance and media agency corruption in China for the last 6 years.

One client has commenced in legal proceedings in China against a former agency. Unique insights into non-transparent financial and operating practices in that market. Regular presenting on China at industry conferences.

• WFA’s guide to global media agency contracts.

Quarterback’s expertise was recently referenced in WFA’s communication to members in relation to ongoing criminal cases involving media agency personnel in China.

SERVICES

Contracts

Reviewing and advising on China-specific contract terms. Recommending improvements to existing contracts. Assisting advertisers in addressing agency contract non-compliance and identifying non-transparent practices. Providing industry expertise and know-how.

Holding Agencies to Account

Advising advertisers on contract non-compliance by agencies, interpreting compliance audit results, helping to interpret and challenge agency communications. Assisting in dealings with parent organizations.

Where an advertiser / agency relationship has broken down, strategy and advice relating to the pursuit of financial compensation.

Support for in-house legal teams

• Expert overview of China, corrupt practices and the risks in appointing a media agency in that market
• Recommended contract terms designed to anticipate and prevent future problems as regards non-transparent and corrupt practices
• Managing relationships and negotiations with agency holding companies, having many contacts among senior holding company executives and lawyers
• Assistance, support and strategy in pursuit of securing parent company oversight over local agencies, honoring audit rights and, where necessary, seeking financial compensation.