Media Rebate Contract Compliance
Advertisers and their respective agencies are increasingly demanding transparency in respect of rebate entitlements earned from their media expenditure.
Media rebate forensic audits ensure contractual compliance, verifying the correct amount is being remitted, and increasing the trust between agencies and their clients.
Media groups offer an array of discounts and rebates to advertising agencies to encourage bulk purchasing. These can be in the form of monetary rebates or free advertising space. Advertisers can be entitled to review the discounts received via a media rebate audit dependent on the terms of their contract. The audit can identify the amount generated by an advertiser client based on its proportion of the aggregate media agency spend.
Case Study: Contractual Non Compliance in Respect of Media Rebates
A Fast Moving Consumer Goods (FMCG) company, had not received any rebates from a well–known international advertising agency despite an annual advertising budget in excess of $1 billion. The FMCG company wanted to investigate whether rebates were owed, and subsequently calculate the amount of rebates owed. Our audit identified approximately $80 million was owed, and subsequently paid, to the FMCG for rebates earned over the previous 4 years.
Case Study: Proactive Review of Rebates Paid
A global advertising agency requested a review of the rebates being paid to their clients. The company wanted a review of the policies and procedures, inspection of the rebate agreements, and recalculation of the rebates payable to their clients. The review identified several procedures which could have resulted in incorrect calculations. The processes were improved and the company used the findings to demonstrate pro-active approach to ensuring they were paying the correct amount in rebates, and build trust through transparency.
If you would like to speak to Opus Pear Tree about our services, please contact Nicholas Parton.
Partner, Head of Forensics