The Anchor: 5 reasons why media audits must be taken seriously

06 Feb,2012

By Stephen White

 

There is an increasing requirement in the world’s major media markets, for advertisers to gain more traction in understanding the media values they are achieving.

 

However, increasing focus from marketing, finance, and particularly procurement departments on the mechanics and the lack of transparency on many media deals, means that specific help is required.

 

#1 Across the globe, media auditing companies are being engaged more and more by advertisers who are seeking independent, high-level media expertise and advice.

 

#2 Media auditors deliver that advice to the clients, covering all the details of how media agencies service, media quality KPIs, and full clarity on media buying arrangements, are being fulfilled.

 

#3 In Europe, over 30 percent of all media expenditure is audited. In the US it is around 15 percent and growing fast. In India, it is around 10-15 percent, and in Japan it is less than 1 percent. This is why the Indian media market needs to fully embrace media auditing to catch up with the more sophisticated markets of Europe and the US.

 

#4 Initial media agency fears are soon pacified, when EMM’s audit reports show “how well” media agencies are performing, and how they could be earning more for exceptional results measured independently by the media auditors. The abiding reality from media auditing around the world is that smarter advertisers are those who are audited, always getting better results.

 

#5 The biggest issue for the Indian market is not the development of media auditing in isolation, it is the perception from outsiders that the lack of media transparency is a very cloudy issue in India, and potentially casts an unwelcome shadow over the whole media industry. Surely the declaration by the Indian government last November to publicly fight alleged corruption in business is just the stimulus the media industry needs, and the arrival of media auditors in India provides the right tools, and the right people, to do the job.

 

All these issues combined gave EMM reason to research the Indian media market place in terms of the appetite for independent media performance evaluation, with views from the major media agencies and groups, and a broad sample of advertisers. The results of that research confirmed, and welcomed, the benefits that media auditing offers would stimulate improvements for the advertiser and from the measured deliverables from the motivated media agencies.

 

Inevitably some uncertainties will remain, but judging by the amount of interest in EMM’s launch into India, combining high level local media expertise with EMM’s 20-year international media auditing expertise is a system that strikes the right balance for India right now.

 

Stephen White is Chairman, EMM India.

 

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One response to “The Anchor: 5 reasons why media audits must be taken seriously”

  1. Dr. Anar Rupji says:

    media Audit is one of the prime necessity not only for the media industry buy entire business fraternity.. any business large or small need there media spends to be audited

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