The recent CCI raids, conducted amid allegations of media cartelization, mark an unprecedented level of scrutiny on the sector and have sent shockwaves through the advertising ecosystem.

In 2022-23, a forensic audit conducted by Reckitt Benckiser’s India unit, one of the country’s largest advertisers, uncovered irregularities in media buying practices at its media agency, Dentsu, according to sources familiar with the matter.

Read more: CCI raids: Cloned data from GroupM, Dentsu puts Big Tech under scanner

Read more: CCI to expand media cartel probe, Big Tech & FMCG deals under scanner

Since 2019, Dentsu X had managed the advertising account for Reckitt Benckiser, overseeing campaigns for some of India’s most recognizable brands. However, in the last quarter of the 2022-23 fiscal year, Reckitt initiated an audit that raised red flags over alleged irregularities in ad placements and financial transactions, according to multiple sources.

The audit findings were significant enough for Reckitt to call for a media pitch, effectively ending its association with Dentsu, sources claimed. This decision set off a competitive battle among leading agencies to secure Reckitt’s coveted account.

In 2023, as Reckitt sought a new agency partner, global advertising giants including GroupM and IPG entered the fray. After a selection process, GroupM emerged victorious, with its subsidiary Wavemaker taking over media strategy, planning, buying, and execution across mass and digital media....

Read Full Story: https://news.google.com/rss/articles/CBMi6wFBVV95cUxOZ2J2NE1lZHh0ZGU4T1hQX01R...