Guide to Internal Controls for Media Investment
Media is a significant investment for your organisation and can have a big impact on business success. Media trading is complex – buying principles, operations and measurement are not always entirely straightforward.
Whether you invest in an independent audit process, or implement a system of internal controls, your investment requires oversight.
If you’re setting up media controls, our advice is to think of these things:
1. BUSINESS OUTCOMES:
Most importantly – does it work?
Do you have a system of measurement in place that includes clear objectives and desired outcomes, with specific KPIs that are measured frequently? Do you understand the outcomes in terms of benchmarks and industry norms? Do operational and media KPIs always align with strategic objectives?
Action:
Agree key strategic outcomes and operational indicators (and stick to them!).
Ensure the internal team and all external partners are working to the same KPIs.
Review periodically, usually quarterly.
2. VALUE
Are you managing value for the business?
Is the price you are paying for fixed price media (e.g. TV, Radio, OOH etc.) in line with your contract commitments and market norms? Are you buying efficiently in programmatic media (e.g. search, social, vod, audio etc.) and are KPIs in line with expectations and market norms?
If you haven’t examined and agreed KPIs in advance, I’ll bet your post campaign analysis will always show lots of green ticks!
Action:
·Negotiate relevant benchmarks for all media channels and suppliers, online and offline (fixed cost or outcome based, as appropriate).
Create a benchmark document and make sure you have a copy.
Review periodically, usually twice a year.
Amend periodically, usually annually (the media market moves fast!).
3. BUYING CONTROLS
Are you getting what you paid for?
Media buying is complex and fast paced - with multiple channels, suppliers, systems and of course frequent changes to plans - mistakes can happen.
A system of controls ensures what you have signed off on the plan is what is invoiced, what is booked and what is actually delivered by the supplier.
Action:
Periodic audit of plan v a) invoiced b) booked and c) delivered, usually twice a year.
4. TRANSPARENCY
Do you understand hidden costs?
Media buying models are ever-changing. Total agency fee is usually a combination of several elements (e.g.retainer, commission, charges, digital fees, mark-ups, retained AVBs, out-of-scope fees etc.). It can be hard to keep track of, and not always clear.
Do you understand the exact breakdown of your investment?.
Action:
An annual agency declaration that asks the right questions.
Regular review of fee structures and agreements.
5. LONG-TERM, PRODUCTIVE, AGENCY PARTNERSHIPS
Do you have a fair and open agency relationship?
Like any relationship, the agency-client one takes work!
The most successful partnerships do not happen by accident and are carefully managed. Do you have clear expectations and commitments on both sides? Have you agreed specific performance targets? Do you regularly deliver structured, honest, open feedback.
Action:
Agree key performance priorities and measures.
Create a performance framework (and make sure you keep a copy!)
Review periodically, usually twice a year.
A structured system of investment controls gives you, and other organisational stakeholders the confidence that you are managing investment and controlling risks.
It creates a framework for understanding business impact and return.
And, crucially, it creates positive, productive and fair agency-client relationships.
If you have any questions or comments, or want any further advice call us on +353 1 556 3678 or email us hello@pt78.e.
We love to chat!