There is a feeling within the industry that auditing your media agency has become more and more complex over the past few years and while there is some truth in that, auditing the large amount clients spend on media should be and still is primarily focused on the same principle of transparency between advertiser, agency and media vendor.

 

Within the media planning and buying sector there are more specifics aspects involved. Recurring findings across our audits of such agencies include:

• Media charges are not being passed on to the client at the net cost paid by the agency.

• Even where a net cost approach is used, media credits/unbilled media/media holds are not being identified and returned to the client on a regular and timely basis.

• Undisclosed rebates & media benefits, either the opportunity or the actual achievement, which could potentially influence media strategy or vendor selection.

• In the vast majority of cases where the MSAs require them to do so, media benefits are still not being returned to the client on a pro-rata basis.

• Free media value, which may already be due for provision to the client, is resold to them or is moved to other clients to meet price commitments.

• The agency are declining cash AVBs to participate in more ‘opaque’ buying arrangements with the media vendors.

• Commercial deals between agency buying groups and media vendors are influencing the media planning and buying strategy.

• The advertiser is unaware and have not agreed to take part in non-disclosed campaign buys on their account.

• Prices are not charged in line with the contract, which specifies whether these are to be based on actual deliverables or estimates.

• The agency is not disclosing when brokers are being used or paid.

• Due to the multiple links in the supply chain, the advertiser is effectively paying twice for some services.

• Specialist agency commissions are not being returned to client (for example those that exist in relation outdoor media in some markets).

• Credit notes and make good credits are not disclosed to the client on a regular basis and are therefore unable to be claimed by the client.