Myths & Realities of Media Audits

“If you change the way you look at things, the things you look at change”

- Wayne Dyer

Media Audit can be defined as “an unbiased examination and evaluation of the means of communication (and the process)

used by an organization to reach people”.

Media Audit defined

23% 25%

42% 46%

16%

51%

62% 66%

49% 56%

33%

47% 37%

28%

41%

A look at approximately what % of 2010 TOTAL media INVESTMENT was audited in the following audit markets

Source: WFA online member survey. September 2011. Base: 33. The list of WFA company members can be found at www.wfanet.org

World Audit Scenario

Why Audit Media?

Today it’s imperative for an advertiser to work in the most efficient & productive way to ensure more value for every rupee spent.

A neutral unbiased assessment therefore helps an advertiser to keep a closer eye on media investments and make stakeholders more accountable.

This is the heart of the concept of Media Auditing.

For a neutral unbiased assessment!

Benefits of Media Audit

Helps a marketer maneuver the media process with insights of where their investment is creating most value and where it isn’t.

Provides a marketer an indication of what they are paying for a particular vehicle compared to the average market price.

To the Advertiser

Improves transparency, efficiency and effectiveness in the media process while educating the client on a lot of areas which usually tend to get ignored.

For an agency whose client is being audited, it would definitely mean that they have to ensure an outstanding media product.

The focus of an agency must be to balance cost & value to deliver appropriate, effective solutions.

To the Agency

Audits encourage transparency at the agency end, which could help boost the agency-client relationship.

Bottlenecks in Audits

Media Agencies see auditors as outsiders who come and tear apart their plans. But this is far from the truth. Agencies need to understand the benefits of audits and contribute to a productive Advertiser-Agency-Auditor relationship.

1. Media Agencies

Clients are averse to ‘rocking’ the boat with their agencies and offending them by appointing Auditors to audit their work. Clients need to understand that these are nothing but bottlenecks to a good transparent process which can benefit all.

2. Client

Media Owners are concerned that popularity of auditors will depress media prices.

Media owners need to understand that prices get depressed by their offering selective discounts to agencies.

3. Media Owners

Are Audits only for large spenders?

An audit more or less serves the same purpose for a small or a large client!

For a small spender who is active only once/twice a year due to budget constraints, an audit could prove very beneficial in ensuring more “bang for the buck” each time they are active.

It could also mean savings (on costs and wastage on delivery beyond requirements) in the 2 campaigns to partially fund a 3rd sustenance activity.

Ensures more ‘bang for the buck’

Audits deliver actionable insights that help marketers from repeating mistakes.

It also builds rigor in the media management process at both client and agency end ensuring sustainable improvements.

Throws light on critical efficiency issues

Are Audits always Post Facto?

A large number of advertisers in South Asia engage with audit firms for planning and buying advisory at the pre campaign stage.

In such a case, every media dollar spent gets reviewed BEFORE it is spent to ensure higher efficiencies.

Audits can be conducted at Pre-Campaign stage

Are there other marketing spends that can be audited?

Apart from ATL, BTL spends are also audited

There is a need for clients to categorize and analyze BTL / Production spends.

Creative services such as design are often combined with fairly standard, transactional services such as printing and artworks.

There is a need to customize the taxonomy for specific client environment.

Creative agencies design a promotional campaign and also manage the print providers and the digital campaign.

When thinking about new approaches to marketing procurement, it is essential to have a solid, structured view of the different elements involved.

An audit in this space results in savings and a more transparent process

An audit in this space can help a marketer get a better understanding of these “dark areas”, which could result in savings and a more transparent process.

Who can commission an Audit?

Marketing, Finance, Procurement!

Finance & Procurement’s initiative for an audit could be largely similar i.e. to answer the questions like: • Are we investing more than

required? • Do we really need to increase

budgets? All these questions largely point towards the direction of greater efficiency, but from different angles.

For ‘Marketing’, efficiencies from an audit will be for

reallocation of savings while Finance or Procurement

would view it as cost saving!

Agency – Auditor symbiosis can deliver value to clients only if agency perceives auditors as collaborators.

Are Audits here to stay?

Given present situation of the market place, advertisers have become demanding value seekers.

Thus fueling a spread of audits both as part of corporate governance and demand for greater accountability from partners.

Audits are a fact of life

Spatial Access Private Limited

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