FEDS WANT ‘MEANINGFUL COOPERATION,’ ANA SAYS

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Monday, November 12, 2018

FEDS WANT `MEANINGFUL COOPERATION,' ANA SAYS

MEDIA-BUYING PROBE REMAINS ON RADAR MediaPost says the Association of National Advertis-

ers has issued a follow-up report to last month's member missive confirming an FBI/U.S. Attorney's Office probe into possible fraudulent conduct in the media-buying sector.

The new report, compiled by ANA outside counsel Reed Smith LLP, details the potential crimes that the FBI is looking into, including mail and wire fraud, conspiracy and racketeering.

The report notes that the FBI and Department of Justice would not have begun the probe "unless they believe, at a threshold level, that potentially criminal activity has taken place." The report also clarifies the kind of cooperation from potential victims that government investigators are looking for. "Meaningful cooperation," it notes, means that potentially aggrieved parties need to conduct their own formal internal investigations before calling the Bureau.

"If and when you uncover indications of fraud, supported by actual evidence, then the FBI wants to hear from you. It is not expected that your evidence will establish proof beyond a reasonable doubt. That is the job of the government. The FBI wants concrete reasons supporting your belief that you may have been defrauded."

Federal prosecutors for the Southern District of New York want to know, among other things, whether agencies received rebates from media outlets, The Wall Street Journal reported in September. The probe stems from a 2016 investigation of the industry commissioned by the ANA, which represents big advertisers like Procter & Gamble and General Motors. The ANA study, which was conducted by corporate investigative firm K2 Intelligence, found rebates and other nontransparent practices were "pervasive" in the U.S.

The latest report from the ANA says those who decide to conduct internal investigations should probably retain outside counsel to assist. Such probes, to be effective, would cover contract analysis, communications histories with agencies, review of prior media audits, financial analyses and other elements. "All investigations and audits should be structured to maintain the attorney-client privilege," Reed Smith recommends. The report notes that some ANA members have expressed concerns about "retaliation" in the event their cooperation is exposed. If retaliation does occur, that behavior itself would constitute a crime, per the report. It also notes that exposure would not likely occur before the discovery phase of a trial and that "only a very few cases result in a trial."

Following an internal probe, if an advertiser does decide to cooperate, its counsel would then notify the Bureau. The report urges that cooperators insist that they receive a grand jury subpoena, the terms of which would be negotiated before evidence is provided.

ADVERTISER NEWS Atlanta-based Mercedes-Benz -- whose name adorns the

Atlanta stadium where Super Bowl LIII will be played -- is the first automotive brand to announce plans to advertise in the big game in 2019. The luxury brand has been an

intermittent Super Bowl advertiser. While it sat out the 2018 game, it ran ads in 2017, 2015, 2013 and 2011, says ... Yellow Tail was the first wine company to air a Super Bowl spot in 40 years when it did so three years ago. Now the brand has announced plans to return with a 30-second spot using the same regional buy strategy that's helped it get around Anheuser-Busch's exclusive rights to air ads in the alcohol category during the big game. The spot will be made from fan posts on Instagram and Twitter about what makes them happy, and one will win a trip ($15,000 value) to their happy place -- anywhere in the world. The regional spots will reach 100 million people, according to Adweek, but the regions were not named... Sears plans to close 40 more stores early next year. The new closures are in addition to the 142 unprofitable stores the department store chain is already expected to shutter toward the end of this year... Tenet Health says admissions on a same-facility basis fell 2 percent during the third quarter compared to a year earlier. The chain's outpatient totals weren't much better, increasing slightly by 0.4 percent. "Our hospitals did not meet our expectations and we are focusing on specific areas to address those gaps," CEO Ronald Rittenmeyer said... The Food and Drug Administration is expected to impose significant restrictions on e-cigarette products -- maybe even this week. The ban on the sale of most flavored e-cigarettes at tens of thousands of convenience stores and gas stations is due to the increase in vaping among minors, says the FDA. Online retailers will also be required to enact age-verification protocols. September data found use of e-cigarettes rose 77 percent among high schoolers as of early 2018. This brings the number of vaping minors to 3.5 million, up from 1 million in 2017... RentA-Center reported third-quarter 2018 revenues of $645 million, an increase of 0.2 percent compared with the same prior-year period, driven by a 5.7 percent jump in same-store sales. It was the seventh consecutive quarter of same-store sales increases... Multiple reports suggest UPS drivers may go on strike today, which could throw a wrench into holiday deliveries. It would be the secondbiggest employee strike to hit the delivery company since 1997. The Georgia-based parcel service said it was clearing all of its freight shipments this week to ensure its network was completely empty by Friday, days before a massive strike could potentially start. Up to 11,000 drivers, who are represented by the Teamsters union, could walk out as contract negotiations remain at a standstill. Last week, Teamster members across the U.S. were voting on UPS's "last, best, and final offer" contract, with final votes expected to be tallied last night.

CABLENET CHATTER

FORD TIPPED ITS HAND ON SHIFT FROM CARS

MythBusters Jr., featuring Adam Savage, will debut on Media Monitors says Ford's ad spend in September

Science Channel on Wednesday, Jan. 2 at 9 PM (ET). For revealed its intention to discontinue production on most of

the 10-episode series Savage has teamed-up with six of the its car models.

nation's leading young "makers," robotics wizzes, builders The iconic company went from a nearly 50/50 split on

and inventors, all under the age of 16, who show off their cars and trucks/SUVs in 2016 to 85 percent allocated to

ingenuity and STEAM (Science, Technology, Engineering, trucks and SUVs in September of this year. In April, Ford

Arts and Math) skills.. Tennis Channel will debut the announced it would produce only the Mustang and the

original series The Ten on Sunday, Nov. 11, at 8 PM (ET). Focus Active car lines.

The countdown show highlights a different debate-spurring

The change didn't occur overnight. Media Monitors

list each week, and begins with The Ten: Men, an episode observed a significant shift in Ford's ad spending in 2017,

dedicated to ranking the 10 best men's tennis players of when the company reallocated 11 percent of its radio, TV

all time. The first season of The Ten will

and cable advertising budget to trucks

feature eight hour-long episodes with a

and SUVs.

new countdown for viewers to discuss

"Ad spend data is a leading indicator:

and debate each week.

a reliable guide to where a manufacturer

It's freezing outside! I could

is heading," Media Monitors said in its

COMCAST'S X1 LAUNCHES BOUNCE

flash a cop today and not get

release on the study.

OTT SERVICE

in any trouble!

Ford's regional and dealer associations

Comcast has agreed to offer Bounce's

followed the manufacturer's lead,

subscription streaming service Brown

adjusting ad spending the same way.

Sugar to Xfinity cable subscribers via

Media Monitors found the dealer

its X1 system.

Larry The Cable Guy

Broadcasting & Cable says the OTT

associations' share of ad budget on SUVs increased from 42 percent to 66

service costs $3.99 a month and features

percent from 2016 to 2018. Through

a collection of African-American movies

September, associations were spending

and on-demand access to Bounce's original series and less than a quarter of what they had allocated for cars in

boxing events.

2016.

X1 customers can sign up for a seven-day free trial. X1

already offers streaming services like Netflix and YouTube IS SOCIAL MEDIA MAKING PEOPLE DEPRESSED?

to its subscribers and is in the process of adding Amazon

Spending too much time on social media sites like

Prime Video.

Facebook may be making people depressed.

Brown Sugar can be found in Xfinity on Demand's

A new study conducted by psychologists at the

Black Film & TV section under networks. Brown Sugar is University of Pennsylvania has shown -- for the first

also available on Apple TV, Roku, Amazon Channels, time -- a causal link between time spent on social media

Amazon Fire TV, Amazon Kindle, Android and and depression and loneliness, the researchers said.

Apple smartphones and tablets and web browsers via It concluded that those who drastically cut back their use

.

of sites like Facebook, Instagram and Snapchat often

Bounce is part of the E.W. Scripps Co.

saw a marked improvement in their mood and in how they

felt about their lives.

`FIXER UPPER' COUPLE RETURNING TO TV

"It was striking," says Melissa Hunt, psychology professor

Chip and Joanna Gaines, who ended their popular at University of Pennsylvania, who led the study. "What

HGTV home renovation series Fixer Upper last year to we found over the course of three weeks was that rates

spend more time with their family, are starting a new TV of depression and loneliness went down significantly for

network with Discovery.

people who limited their (social media) use."

The couple announced their plans late last week. Chip

Many of those who began the study with moderate

Gaines says a lot of the filming will take place in Waco, clinical depression finished just a few weeks later with

Texas, where they live, minimizing travel.

very mild symptoms. And many who began the study with

In a statement, Discovery says nothing is yet official, but moderate clinical depression finished just a few weeks

acknowledged that it's working with the couple on what it later with very mild symptoms, she says.

termed a TV network and ecosystem.

The study, No More FOMO: Limiting Social Media

Discovery previously formed a network in a joint venture Decreases Loneliness and Depression, is being

with Oprah Winfrey. It took several years before the published by the peer-reviewed Journal of Social and

network gained traction and started making money. OWN Clinical Psychology.

is now majority owned by Discovery.

This isn't the first study to find a link between social media

Fixer Upper had its debut on HGTV in 2013. Season 5 use, and depression and loneliness. But previous studies

premiered in November of 2017 and ended this past April. have mainly just shown there is a correlation, and the

HGTV launched a spinoff for Joanna Gaines called Fixer researchers allege that this shows a "causal connection."

Upper: Behind the Design. That show premiered in April.

Why does social media make so many people feel

HGTV was part of Scripps Networks Interactive, which bad? The study didn't analyze this, but Hunt offers two

was acquired by Discovery earlier this year.

explanations. The first is "downward social comparison."

You read your friends' timelines. They're deliberately

PAGE 2

putting on a show to make their lives look wonderful.

The result: "You're more likely to think your life sucks in



Monday, November 12, 2018 comparison," says Hunt. The second reason: FOMO, or Fear of Missing Out.

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