An Agency Commitments Audit is a specialised review that focuses on evaluating whether the media agency has lived up to the commitments or promises made during the pitch process.
This audit scrutinises the agency's deliverables, performance metrics, and any other obligations that were agreed upon at the outset of the relationship.
The aim is to hold the agency accountable for their initial promises, ensuring that they are not just 'sales talk' but are actually translated into tangible results and benefits for the advertiser.
By conducting this audit, advertisers can gain a clear understanding of how well the agency is aligning with their initial commitments, thereby fostering a more transparent and accountable partnership.
Challenges Addressed:
- Discrepancies between Contractual Pitch Commitments and Actual Delivery: This challenge involves identifying and addressing any variances between what the media agency pledged in their pitch and their actual performance. This is crucial as such discrepancies can lead to unmet expectations and strained relationships.
- Difficulty in Tracking Agency's Adherence to Contractual Pitch Commitments: Monitoring the agency's compliance with their initial promises often presents a significant challenge. This difficulty arises from the complexity of media campaigns and the nuanced nature of performance metrics, making it hard to objectively assess adherence.
- Lack of Resources to Validate whether the Commitments have been met: Many advertisers do not possess the in-house expertise or resources required to thoroughly evaluate the extent to which an agency has fulfilled its commitments. This gap can lead to a lack of oversight and potential misunderstandings about the agency's performance.
What This Audit Covers:
- 12 Months Audit of Media Agency Commitments
- Media Pricing Commitments vs. Actual Audit
- Media Quality Commitments vs. Actuals Audit
- AVB Commitments vs. Actuals Audit
- Digital Media Technical Cost Commitments vs. Actuals Audit
- Media Agency Service Commitments vs. Actuals Audit
- Any Additional Commitments vs. Actuals Audit
- 12 Months PRF/PRIP Calculations, including Bonus / Malus (Penalty)
- Our Recommendations for Improvement
The Process & Timeline:
- ONBOARDING (Week 1): Discuss the project and explain the scope of work to both the local client and the local media agency.
- DATA COLLECTION (Week 2-4): Collect all required existing media documents and detailed media data for all media investments, for both digital and traditional media channels, using our secured cloud content management platform.
- MEDIA AGENCY INVOICES ANALYSIS (Week 5-8): Analyse the media agency invoices against actual delivery, post-campaign reports, purchase orders, and best practices.
- INTERVIEWS (Week 9-10): Conduct set of 'context seeking' interviews with the key stakeholders (agency and advertiser separately) and process additional information received following the run of interviews.
- REPORTING (Week 11-12): Prepare audit report, collect feedback and comments from both the local advertiser and the local media agency + delivery of the final report + presentation of the final report.
Benefits:
- Independent Measurement & Validation that the Agency Commitments were met: An Agency Commitments Audit provides an objective and impartial assessment, confirming whether the media agency has met its initial promises. This independent validation is crucial for ensuring accountability and upholding the integrity of the advertiser-agency relationship.
- Enhanced Accountability from the Media Agency: The audit process encourages media agencies to honour their commitments and maintain high standards of performance. Knowing that their delivery will be scrutinised, agencies are likely to be more diligent and transparent in their operations.
- Strengthen Trust and Transparency in the Advertiser-Agency Relationship: Regular audits help in building a more transparent relationship between the advertiser and the agency. This transparency fosters trust, as both parties have a clear understanding of expectations and achievements, leading to a stronger, more collaborative partnership.