Assessing Media Agency Contracts – Case Study

Challenging Problem

Media agency contracts can be complex and, due to the evolution of media strategies, channel investments and technology, can ‘date’ relatively quickly. While most organisations have in-house legal and procurement expertise, they are often not specifically experienced in media agencies, which can lead to a weak negotiating position with agencies.

Generally, challenges in media agency contracts are common to all.

1. To fully understand the nuances of media agency operation, such that a suitable contractual template can be established.
2. To fully understand the level of agency transparency and obligations on offer in the contract and calibrate this against the level of transparency required by the organisation.
3. To establish a fair, reasonable and sustainable agreement for both parties.

TrinityP3 Solution

TrinityP3 performs Contract Assessment projects. These projects can be linked to or separate from remuneration and resource benchmarking.

The outputs of Contract Assessment projects are reports that enable marketing leaders, procurement leads and legal counsel to understand how their contract should be evolved fully and provide the necessary armament to negotiate with the agency.

Process

TrinityP3 reviews the active contractual document clause by clause, focusing on all areas specific to media agency operation.

We produce a detailed written report of diagnosis, explanation, and insight, alongside clear improvement recommendations ranked by area and relative level of impact, and we discuss our findings in full with our clients, answering any supplementary questions they may have.

To undertake Contract Assessments, TrinityP3 draws on the extensive agency, consultancy and industry knowledge and expertise inherent in our consultant base.

Result and Feedback

Some of the areas that we have uncovered and/or recommended in findings across many projects include:

1. ‘Hidden’ or otherwise opaque documentation linked to the contract, linked to financial transparency and service obligations of the agency or agencies involved in a contract and hitherto undetected by the organisation.
2. Improvements to agency obligations regarding the use of data and data protection
3. Highlighting areas in the contract that have not been enforced.
4. Strengthening the contractual protection and/or transparency on offer to organisations in areas such as affiliated third parties, principally traded inventory, incidental or hidden costs.
5. Highlighting areas of the contract that are rendered obsolete due to change.

The feedback from numerous organizations highlights the clarity of the reports and the significantly increased ability to have their legal teams properly negotiate a renewed contractual document or template.

Contact us about a Media Agency Contract Assessment or learn more about our Media Value Operational Review.