success case
It recovers 15% more than what was reported by the agency
We identified a shortfall in the agreed volume of bonuses from the agency for open TV.
Media Auditors identifies a shortfall in the bonuses included in the agreements with broadcasters for a major consumer goods advertiser. Through the audit, we managed to recover an additional 15% beyond what was reported by the media agency.
A global food producer with over 100 years of experience in the industry and a significant advertising investment, placing them at #30 in the advertiser rankings, with a clear strategic marketing vision in Mexico.
About
our client
CHALLENGE
Excellent bonus agreements but insufficient control over their execution
One of the major challenges of being a high-investment and marketing powerhouse is effectively managing and leveraging the benefits you negotiate. A good negotiation with TV networks in Mexico includes a series of bonuses and commitments from the channels, which are then implemented by the agency.
In the Mexican market, there is a wide variety of bonuses offered by the three main television networks: TV Azteca has approximately 17 types of bonuses, which can vary from client to client, depending on the sector and specific needs. Televisa offers up to 10 types of bonuses, ranging from the very common “rate impact” to compensation for audience drops. Imagen provides around 6 types of bonuses to its clients, with this variety increasing each year.
What we encountered with this project was a client with a lack of control and follow-up on agreements made with television networks:
- Lack of visibility over the volume of these bonuses in relation to their media budget.
- Limited control and monitoring of the fulfillment of the agreements.
- Lack of trust in the agency regarding the reports and quantification of the bonuses.
SOLUTION
Bonuses Audit
First, Media Auditors conducted a thorough analysis of the contracts with the TV networks, identifying which bonuses were quantifiable and auditable for the client.
Based on the information gathered, we created a detailed template that required the agency to fill out each of the required points. Additionally, we requested supporting documents for all reported data.
Once the data was analyzed and the bonuses were quantified, the results were presented to the agency to verify the information and subsequently presented to the client.
Analysis of Contracts
Identificar bonificaciones auditables y cuantificables.
Data Collection
Y soportes de cumplimiento de bonificaciones.
Quantification
De diferencias, beneficios cumplidos y no cumplidos.
CONCLUSIONS
Results
Key Findings from the Audit:
- 70% of Bonuses Quantifiable: The audit revealed that 70% of the client’s bonuses were quantifiable.
- Contractual vs. Actual Positioning: The contract stipulated that 37% of the investment should be allocated to positioning. However, only 3.5% of the investment was actually positioned.
- Potential vs. Actual Benefit: The audit identified a benefit of over MXN $300,000 from positioning. If the full 37% positioning had been adhered to, the benefit would have exceeded MXN $3 million in the fourth quarter, ten times the actual amount achieved.
- MXN $1,000,000 Saved: Savings of MXN $1 million were realized from price waivers on three specific programs.
Conclusion:
-
The amount reported by the agency for the quantification of consumed bonuses was less than MXN 40,000,000.
- The amount audited by Media Auditors was MXN 45,000,000, which is 15% more than what was reported by the agency.
We identified MXN 44,000,000—15% more than what was reported by the agency.
Insights & Reports
Media Auditors Thinks
Reports and relevant information on market trends in advertising and media