Media auditing has been around for years. Audit companies collecting pools of media rates to then use to compare what rates the media agency is achieving. But this traditional approach to media auditing is flawed and increasingly advertisers are looking for way to measure and benchmarking the value of the media investment. Find out why here in Media Minutes.
DARREN: Welcome to Media Minutes. I am Darren Woolley STEPHEN: And I am Stephen Wright DARREN: In the next few minutes we will share with you our view on media auditing and answer the question “Is it still relevant”. Stephen? STEPHEN: Yes Darren, it is true that some advertisers still rely on media auditing to measure the rate their media agency is buying media on their behalf. DARREN: That sounds more like media benchmarking than auditing? STEPHEN: Well it is true, what we are talking about here is benchmarking media rates, but the industry refers to this process as media auditing. Typically, media rates are compared to a pool of media. DARREN: Is that even possible in the diverse media landscape we have today? STEPHEN: Well it is true that most media auditing does focus on television. And that many media auditors struggle with the majority of other media channels, particularly the digital channels. But this is the traditional approach to media auditing. DARREN: Doesn’t that pooled approach simply encourage lower media rates? STEPHEN: Yes, it is true that most tradition media auditing is focused on media cost reduction, with media agencies often incentivised to ‘beat the pool’, that is buy media cheaper than the pool to get paid their performance bonus. DARREN: Sounds counterproductive to me. STEPHEN: Well, for a lot of advertisers Darren, they take the approach that media is a commodity and that the main task is to reduce the commodity cost. But the smarter advertisers see media as an investment and are more interested in measuring performance, rather than cost. DARREN: That sounds smart. STEPHEN: Yes, even John Billett, who is considered the father of media auditing in the UK, is on the record as saying that today’s media auditing with its focus on discounts is flawed. DARREN: So, what is the alternative, Stephen? STEPHEN: Well Darren, we are seeing a rise in a new approach to media auditing. Were instead of simply managing a pool of media buying rate data, media auditors are providing advertisers with a view across the media value chain. DARREN: In what way, Stephen? STEPHEN: Instead of simply focusing on media discounts and price alone, the focus is on identifying where media value is being created, lost and diminished and advising advertisers and their agencies on ways to optimise their media value. DARREN: Sounds like the work we do in media at TrinityP3? STEPHEN: It is Darren. But we go beyond simply media rates to look at all aspects of media value and the way it is delivered. Looking at media strategy, structure, process, capabilities, fees and more to identify where media value is being lost and where more value can be created. DARREN: Sounds comprehensive, Stephen. STEPHEN: It is Darren. A comprehensive commercial review. Providing both advertisers and their media agencies with a detailed understanding of how the current commercial arrangements are performing and the opportunities for both parties to deliver improvement. DARREN: Well that sounds more valuable than a media benchmarking report, sorry a media audit then, Stephen? STEPHEN: It certainly is Darren. And one that is delivering improved media value and performance for advertisers and agencies alike. DARREN: Thank you Stephen. And make sure you subscribe to Media Minutes. A weekly snack on all things media. Until then. I’m Darren Woolley, and he’s STEPHEN: Stephen Wright TOGETHER: And this is Media Minutes.