This document contains an agenda and presentation materials for a session on driving media agency accountability and results. The presentation covers the history of accountability in media including the rise of audits. It identifies different levels of governance around accountability from low to high. It also discusses working with a media auditor, including determining objectives and choosing the right partner. The presentation provides guidance on establishing a baseline and selecting between audits focused on savings versus benchmarking.
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This session will cover…
History of Accountability in Media
Working with a Media Auditor3
1
Identifying Yourself on the Accountability Spectrum2
8. Q1: Compared to one year ago, has the relationship improved, stayed the same, or
declined?
Moving in a positive direction…
30%
64%
6%
62%
36%
2%
Improved Stayed the Same Declined
Marketing
Procurement
Base: Marketing = 67, Procurement = 81
Marketing & Procurement are partners
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Media Audits have become SOP in the US
Agency Accountability Teams
No longer an exception, standards and structure are emerging in media accountability
New Specialties Emerging
Legal advice
Ebiquity works with
85 of the top 100 advertisers
in the world.
Annual, Bi-annual, Quarterly
Most are multi-year
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Two main types of audits
Hard
Savings Marketplace
Benchmark
YOY comparison
Bottom line
Increasingly used in agency reviews
Your pricing versus industry norms
Strategic
Goal: 2-way evaluation of performance to
establish ongoing improvement & value
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The Accountability Spectrum
The first step in figuring out what to do is to determine who you are.
We have a variety of clients that fall across the accountability spectrum – from
those that are just starting out to those that have had processes and measures in
place for a while.
Low /Starting Out Midway Mature
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Low Governance Characteristics
Often associated with advertisers with modest resources
No/Low Internal Media Resources
Minimal Contractual Audit Rights
Little to No History of
Auditing/Benchmarking
Commitment to Savings with No or Few
Parameters
One-sided View of Marketplace
Reluctance to Surface any Challenging
Relationship issues
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Low Governance Approach to Accountability
These advertisers need to establish control
Review/Update Contract
Terms
Training/Education
Establish a Baseline
Ongoing System
Full disclosure, Audit rights, visibility to 3rd parties, ownership of data
Cost baseline – Industry, YoY
Quality baseline – Industry, Trend/YoY, Corp guidelines
Media 101, Marketing Team “+”, 3rd party unbiased advisors
Measurement & accountability need to be monitored
Consider stakeholders : Media owners, Marketing, Procurement
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High Governance Characteristics
History of Auditing
Clear Agency Engagement
Principles
Up to Date
Senior Management Support
Global Marketer
Company has audited in the past and has a positive outlook
on the process
Contracts include full audit rights and data visibility
Savings, max increase in price, Detailed quality and quantity
accountability metrics which are reviewed regularly
Mandate to invest in accountability
Company is more likely to have a global presence
Mandate to be accountable, and the tools to achieve it
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High Governance Approach to Accountability
Contract Compliance
3rd Party Verification
Periodic Contract Updates
These advertisers are leaders, constantly establishing new standards
Ensures full transparency; follows the money
As needed and as the market changes
Making sure that cost & quality benchmarks are being met
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If you seek Savings
Active part of advertising/media workflow
1. Usually tied to agency incentives
2. Requires transparency by all players
3. Alignment on methodology
5. Requires an unbiased mediator
6. Automated reporting
7. Multi-year is common and recommended
4. Target adjustment after Year 1 8. Media inflation alignment
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If you seek Benchmarking
Identifies opportunities for improvement
1. Cost & quality of media buys to industry
benchmarks and competitors
2. Like-for-like comparisons
3. Turn-key for advertiser
5. Cost and Quality have empirically proven
relationship
6. Advertiser’s goal:
higher quality at lowest possible cost
7. More strategic than YOY Savings exercises
4. Driven by agency incentive, internal
accountability, or both
8. Provides insight on how to improve
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Where to Start
Clear Objectives
Kick-off
Choose the Right Partner
Establish a Baseline &
Capture
What do you want to achieve by
doing an audit?
Are you looking for continuous
improvement, or pure
accountability?
Who are the stakeholders?
Media Audits
Financial Audits
Both?
Face-to-face scoping meeting
Include stakeholders in process
Learn about what has value and is
actionable in your organization
22. When extra help is needed…
MEDIA DATA ASSURANCE helps across:
So, where are you on the
accountability spectrum?
A new way to establish confidence in
your data and your results.
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Media Planning
Data Ownership and Control
Partner/Supplier Selection and Implementation
Measurement of Results
Programmatic Trading
Notes de l'éditeur
(recently…2008 crash, swing to procurement…2012 back to marketing…2015 marketing + procurement)
Insert timeline illustrating the need for savings, rise of procurement department, backlash as savings was emphasized ahead of quality, marketing+procurement working closer together
http://adage.com/article/cmo-strategy/marketers-procurement-learn-love/293011/
https://www.marketingweek.com/2015/12/01/is-there-still-a-role-for-marketing-procurement/
Internal
Agency
Trend: Agency Accountability Teams
Obligations of auditor
Confidentiality
Transparency
Unbiased
Review/update your contract terms
Audit rights
Visibility to 3rd parties
(1 or 2 other things from ANA reco)
Establish a baseline of cost and quality
Cost
Industry
YOY
Quality
Industry/competition
Trend/YOY
Corporate guidelines/restrictions (if you don’t have, need to be estlabished)
Training/Education
Put an ongoing system in place for measurement and accountability
Thoroughly consider stakeholders
Media owners, Marketing owners, Procurement owners
History of auditing
Up to date contract with full audit rights and data visibility xxx
Clear agency engagement principles which may include
Savings
Max increase in price
Detailed qual and quant accountability metrics which are reviewed frequently, e.g. quarterly
Senior management mandate to invest in accountability
More likely to be a large global marketer
Contract compliance reviews to ensure transparency
Periodic contract updates, as needed/as the market changes
3rd party verification that cost & quality benchmarks are being met
Savings is inward. Benchmarking is outward facing – you vs outside your bubble. What is the marketplace doing that you’re not. You question your approach, not just report savings.
Have clear objectives. What do you want to achieve by doing an audit? Are you looking for continuous improvement, or pure accountability? Who are the stakeholders?
Choose the right partner
Media audits + financial audits?
Kick off – face to face scoping meeting
Include all stakeholders in process
Establishing a baseline & capture learning about what has value and is actionable in your organization