China’s Media Rebate Scandal Widens

The ongoing media rebate corruption probe in China has taken another major turn last week, as authorities widen their investigation across media agency networks.

What began in late 2023 with a whistleblower complaint at GroupM (now WPP Media) has now spread to other agency holding groups, with senior executives from both Dentsu and Wavemaker reportedly arrested.

At Abintus Consulting, we believe it’s critical for advertisers to follow this story closely, not only because of its immediate impact in China, but because it highlights ongoing risks within opaque media trading practices around the world.

The Latest Developments

According to Campaign Asia-Pacific, over 30 individuals from GroupM, Dentsu, and other vendors have been questioned by police in Shanghai.

These developments indicate a systemic issue that spans multiple networks and trading partners. Key developments include:

• Tommy Li, CEO of Dentsu Media China, has resigned following an internal investigation. Dentsu confirmed he is now in police custody, although the company stated no other employees were implicated and no clients were involved.

• Julep Lin, former Chief Client Officer of Wavemaker China, was also arrested in Shanghai. Lin had left GroupM last year and was freelancing at Havas Media at the time of his arrest.

• Chen Yuan, a former member of GroupM’s investment team, is due to stand trial on June 24. His case follows the earlier court proceedings of three former GroupM executives accused of manipulating rebate deals for personal gain.

What's at the Heart of the Scandal?

At the core of this investigation is the manipulation of media rebates / cash AVBs that should have been returned to clients but were instead routed through third-party intermediaries and allegedly misappropriated by agency executives.

This practice not only breaches client trust but fundamentally undermines the integrity of the media value chain.

GroupM, Dentsu, and other holding groups have responded with internal investigations and governance measures.

However, the extent of the misconduct and the number of individuals involved suggest a much deeper issue with transparency and accountability.

Why This Matters for Advertisers Everywhere

Although this investigation is unfolding in China, the underlying problem is not unique to the region.

Media rebates and incentive schemes remain one of the least transparent aspects of the advertising ecosystem.

When not governed properly, these practices can lead to serious conflicts of interest, financial exposure, and reputational damage for brands.

Advertisers must take this as a wake-up call.

Relying blindly on agency partners without independent checks and balances can be risky, even when compliance processes appear to be in place.

Our Take: It's Time to Prioritise Transparency

At Abintus Consulting, we’ve long advocated for greater transparency in media trading.

This means going beyond contract clauses and investing in proper governance, independent auditing, and consistent agency oversight.

Whether operating in China, Europe, or North America, advertisers should ask themselves:

• Do we have visibility into how media rebates and incentives are negotiated and distributed?

• Have we conducted an independent audit of our media agency’s financial compliance in the past 12–18 months?

• Are we confident that our agency is acting solely in our best interest?

If the answer to any of these questions is “no” or “I don’t know,” now is the time to act.

Final Thoughts

This scandal is still unfolding, but the message is clear: advertisers must be proactive in protecting their media investments.

The days of opaque trading and ambiguous value return are over, or at least, they should be.

At Abintus, we help advertisers retake control of their media governance with independent media audits, agency contract reviews, and performance tracking tools designed to bring clarity and accountability.

If you’re concerned about your exposure or simply want to understand how transparent your media arrangements really are, we’re here to help.