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 are basically a slush fund where media credits and debits are washed by the Agency. We have seen examples where suspense accounts have held over $450,000 of client funds, often unbeknown to the client.)
Note: For Enth Degree, it is a financial “Media Audit” in the purest sense. Our audits are conducted by a qualified accountant who possesses the recognised credentials to perform this task. Our accountant verifies accounts to ensure that where discrepancies arise, rate adjustments are passed onto the client in full, and in an acceptable time period.
So how do “Media Reviews” differ?
They review cost efficiency of media placement, audience and schedule performance, and value added achievement against agreed placement objectives and agreed benchmarks. They should investigate beyond cost factors, and provide a total buying perspective based on negotiated rates, placement delivery, AND cost effectiveness.
Which one do you need?
