Video ad agency wins $7m in court over digital marketing

A video advertising agency is being awarded $7 million in court after it failed to pay the money owed it by clients who had complained about their ads being shown in a YouTube video.

The advertising agency, Littles Advertising, said in a statement on Monday that the decision to pay $7.5 million was in line with the law and was the result of a “consistent pattern of poor performance”.

“Our clients were not paid and they are owed millions,” Littels spokeswoman Sarah Worsley said.

“We are pleased that we have been able to make this resolution and are pleased to have reached this resolution with a judge.”

The ad agency, which had about $1.8 million in revenue in 2016, said it was unable to pay some of the money due, and that it planned to appeal.

The case has come to light after an anonymous complaint to the advertising regulator last year, according to the BBC.

According to a letter sent to the agency by the Consumer Federation of Australia, a group representing video advertising industry groups, “the complaint relates to Little’s failing to provide customers with timely and adequate information regarding the accuracy of the video in question and failing to comply with statutory obligations and consumer law”.

It is the second time in two years that Littel has been forced to pay back money it owes to clients.

In January this year, it was fined $4.5m after it was found to have breached its advertising code by failing to follow guidelines in its digital marketing guidelines, which required the company to include the terms and conditions of a video ad.

Littles was also fined $2.9m in March 2017 for not following its advertising guidelines, according a statement from the Australian Advertising Standards Authority.