Media Suspense Management – would you pay money for a product you never received?

All marketers need to understand the implications of this unacceptable accounting practice and identify how much it is costing. The value identified through a simple invoice review can deliver tens of thousands of dollars of your media spend. Media Suspense Account – What is it? Unreconciled credits, the difference between what the client has paid and what the media company has invoiced, are put into a ‘media suspense’ aka ‘media hold’ account. Newspapers, TV stations, outdoor companies don’t always get their invoicing 100% correct. Not all spots will appear as planned on a TV Network, A newspaper may place your ad correctly as booked on page 5 but…

READ MORE

Media Agnostic Planning… Does it still exist?

A few years back, “media agnostic” was a cliché that was vogue for those companies trying to differentiate their Media Agency from a competitive set evaluated on their ability to deliver “the most competitive rate platform”. It was used to get agencies to a position whereby their strategic credentials were at the fore.

READ MORE

Are you getting the most out of your agency remuneration structure?

The most common and complex frustration of a client in the area of marketing value management is finding a relevant remuneration structure for agencies that can work for both the client and the agency. Ask yourself – does your agency remuneration model provide you with flexibility, transparency and relevance to your campaign requirements and changing budgets. If not, if could be time to look at your contract to maximise your ROI. Common Frustrations At Enth Degree, with over 20 years’ experience, we are market experts in agency remuneration for major marketers Nationally and Internationally. We have seen both the best and worst in agency remuneration practices and have…

READ MORE

What’s the big deal about post campaign reporting?

Media accountability and transparency continues to grow through ever improving measurement systems, yet we find that many media agencies either don’t have the time, or perhaps the inclination, to provide their clients with meaningful and transparent post campaign reporting. Apart from the common absence of detail and learnings, some reports can be misleading. So is there a point to these reports? Absolutely.

READ MORE

Do you really know how well you are buying media?

Google the term “media fragmentation” and you will be faced with more than 10 million results. “Media fragmentation” is probably the most common topic discussed by your media agency. This fragmentation has had a significant impact on the way marketers harness media options. Mono dimensional campaigns no longer cut it in today’s marketplace. Think of the multi-screen viewing phenomenon. Although the argument that television remains the “most powerful of all media” continues, there is no argument in terms of its scheduling in isolation. It has become extremely rare. The success of campaigns is now determined by the combination of media opportunities to interact with your target at different…

READ MORE

Do you need a media audit or a media review?

Media Audits review the media agency’s invoicing procedures and ensures that invoices emanating from the agency align with those raised by the media. Let’s briefly consider why an audit is necessary: 1. It allows an assessment of rates charged versus rate agreements to ensure they align. I.e. that the rate invoices reflect the negotiated client volume discounts and concessions. 2. It ensures that rates charged by the media are not loaded by the media agency and that credits (or debits) for rate adjustments are passed on to the client in full. 3. It facilitates an investigation into whether suspense (or holding) accounts have been established or not. (These…

READ MORE

True or False – Savings can be achieved without the loss of service output.

Cost savings are easy to deliver but are often a false economy in the absence of agreed service delivery standards. We call this sentiment “value management”. It underpins the work undertaken for all of our clients. Be it agency pitches, contract renewals, cost negotiations or media performance reviews, consistent due diligence must be applied to ensure savings generated on behalf of clients are protected through performance accountability. We’ve got a common objective with our clients. The objective is to ensure that the best possible performance output is received for the fairest possible price. This applies for all communication supplier types. There are several tools to enable this:

READ MORE

One size does not fit all – creative agency remuneration models

The most common and complex frustration of many clients is finding a creative agency remuneration structure that is relevant to campaign volumes, and is transparent and flexible. It’s an area of marketing value management that we’ve worked hard to master. We are privy to a wide range of remuneration models; from the old school system of paying an agency a percentage based “service fee”, to fixed fee services, plus the Enth Degree proprietary models focusing on quantifiable outputs. The point is that there will never be a definitive “best” model because each client’s requirements differ.

READ MORE