Why it Matters
by Matthew Reiss, President, AMI+ Partners https://advantagemediainc.com
In the competitive and ever-evolving landscape of advertising, ensuring that media investments are efficient, effective, and transparent is more critical than ever. For advertisers and fellow marketing procurement leaders, the task of optimizing media spend while holding media agencies accountable can be daunting. This is where media audits come into play.
A media audit is a comprehensive examination of an advertiser’s media transactions, performance, and adherence to contractual terms. However, the success of a media audit largely depends on choosing the right auditing partner and understanding the key factors that can influence the outcome. There are some essential considerations clients must keep in mind when selecting a media auditing partner and embarking on the audit process. By focusing on independence, expertise, methodology, transparency, and more, advertisers can ensure they derive maximum value from their media audits, leading to optimized media performance and greater return on investment.
Independence and Objectivity
One of the most crucial aspects to look for in a media auditing partner is their independence. An independent auditor ensures that there are no conflicts of interest. They should not be affiliated with any media buying, selling, or trading entities. Independence guarantees that the audit results are unbiased and solely in the best interest of the advertiser.
Why it Matters: Independent auditors provide a level of transparency and trustworthiness that is essential for an accurate and fair assessment of media transactions and performance. They act solely on behalf of the advertiser, ensuring that their findings and recommendations are impartial.
Expertise and Experience
The expertise and experience of the auditing team are paramount. Clients should look for auditors who have a deep understanding of both traditional and digital media landscapes. The auditor’s experience in dealing with various media types, tools, and platforms will ensure a comprehensive audit.
Why it Matters: Experienced auditors can identify nuances and discrepancies that might be overlooked by less seasoned professionals. Their knowledge allows them to use the most relevant and effective methodologies to assess media performance and financial transactions.
Methodology and Tools
The methodology and tools used by the auditor are also critical. Clients should ensure that the auditor employs rigorous and industry-standard methods for data collection, analysis, and reporting. The use of third-party verification tools such as Nielsen and comScore is often essential for validating media performance.
Why it Matters: Robust methodologies and reliable tools ensure that the audit is thorough and the results are accurate. These tools help verify the performance metrics reported by agencies and identify any discrepancies in media buys.
Transparency and Collaboration
Transparency in the audit process is vital. The auditor should be willing to share their working papers, methodologies, and findings with both the client and the agency. Additionally, the auditor should foster a collaborative relationship with the agency to ensure that the audit process is smooth and effective.
Why it Matters: Transparency builds trust among all parties involved. When the auditor, client, and agency collaborate, it ensures that the findings are understood and actionable steps can be taken to address any issues. This collaborative approach also helps in gaining the agency’s buy-in, which is crucial for implementing recommendations.
Proven Track Record
A proven track record of successful audits is a strong indicator of an auditor’s capability. Clients should look for testimonials, case studies, and references from previous clients to gauge the auditor’s performance and reliability.
Why it Matters: A history of successful audits demonstrates the auditor’s ability to deliver results. It provides clients with confidence that the auditor can handle their specific needs and deliver actionable insights that can improve media performance.
Cost and Value
While cost is always a consideration, it should not be the sole determining factor. Clients should evaluate the value that the auditor brings to the table. This includes the quality of insights, the potential for cost savings, and the overall impact on media performance. The results often include both cost savings as well as future improvement, the latter being “soft savings” in procurement talk whereas the first one is “hard savings”. When choosing an auditor it is important to compare the auditor fees to your annual media spend. And validating that the auditor will pick up the phone to help eve after the specific assignment is completed is also key for a successful cost/value assessment.
Why it Matters: Focusing on value rather than just cost ensures that clients get a return on their investment. A more expensive but thorough and insightful audit can lead to greater savings and improved media performance in the long run.
Confidentiality and Data Security
The media spend data is often considered one of the most valuable data within advertising. Given the sensitive nature of media spend data, confidentiality and data security are critical. Clients must ensure that the auditor has robust measures in place to protect their data from unauthorized access and breaches.
Why it Matters: Data breaches can have severe consequences, including financial loss and reputational damage. Ensuring that the auditor has strong data security practices protects the client’s interests and maintains the integrity of the audit process.
Customization and Flexibility
Every client’s needs are different, and a one-size-fits-all approach to media audits is not effective. Clients should seek auditors who can customize their services to meet specific requirements and are flexible in their approach.
Why it Matters: Customization ensures that the audit addresses the unique aspects of the client’s media buys and performance metrics. Flexibility allows the auditor to adapt to any changes or specific requests from the client, ensuring a more tailored and effective audit process.
Communication and Reporting
Effective communication and clear reporting are essential for a successful media audit. Clients should look for auditors who provide regular updates, clear and concise reports, and are available to discuss findings and recommendations.
Why it Matters: Clear communication ensures that clients are kept informed throughout the audit process. Concise reporting helps clients understand the findings and take appropriate actions. Availability for discussions ensures that any questions or concerns are promptly addressed.
Commitment to Continuous Improvement
Finally, clients should look for auditors who are committed to continuous improvement. This means not just conducting a one-time audit but providing ongoing support and follow-up audits to ensure that the recommendations are implemented and that media performance continues to improve.
Why it Matters: Continuous improvement ensures that the benefits of the audit are long-lasting. It helps clients stay ahead of any potential issues and continuously optimize their media spend for better performance and efficiency.
Selecting the right media auditing partner is a critical decision that can significantly impact an advertiser’s media efficiency and effectiveness. By considering factors discussed above, clients can ensure they choose an auditor who will deliver valuable insights and help optimize their media investments. Conducting regular media audits with the right partner not only enhances accountability and transparency but also drives better media performance and financial outcomes
