A Strategy to Combat Media Non-Transparency

The K2 Intelligence report on media transparency conducted on behalf of the ANA reported that numerous

non-transparent business practices were found to be pervasive in a sample of the U.S. media ad-buying ecosystem. In response to this eye-opening report,

the ANA, in partnership with Ebiquity, has crafted a series of recommended responsibilities for advertisers and

agencies to combat media non-transparency. Here are some you can implement right now. Have a look:

EVALUATE AGENCY VERSUS PRINCIPAL

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Media agencies now often act in a dual capacity with advertisers, as both an agent and as a principal.

Advertisers should immediately confirm and reaffirm the basis on which their media agency is conducting business,

being critically clear about and comfortable with the agency’s role as agency and principal. Ensure there are no conflicts of interest and that clear processes are in place to resolve

conflicts. The default should always be that the media-buying agency is acting as an agent for a disclosed principal,

unless the advertiser otherwise agrees in writing.

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KNOW YOUR CONTRACT CONTENT

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One of the fundamental disconnects noted in the K2 report was the belief by some advertisers that

agencies were duty-bound to act in their best interests, while some agencies stated the relationship with advertisers was defined solely by the contract. Advertisers need to know their agency contracts inside and out, and ensure that they

contain robust provisions to deliver full transparency. You can review the Master Media Buying Services Agreement template

prepared by ANA’s General Counsel, Reed Smith LLP.

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RESERVE CONTRACT AUDIT RIGHTS

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According to the K2 report, limitations on audit rights are a factor that may contribute to the proliferation of

non-transparent business practices. Advertisers should have robust and far-reaching audit rights which track

contract compliance. The appropriate audit rights allow advertisers the opportunity to “follow the money.”

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GOVERN YOUR CONTRACTS

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Implement strong, disciplined internal processes to deliver contracts which ensure strict accountability,

compliance with effective management principles, rigorous process governance, and significant senior management oversight. Internal governance of the contract should be a priority given the scale and

importance of advertising investment.

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OWN YOUR DATA

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Take ownership of data and exert control over the media technology used on your company’s behalf.

In the multi-channel age, advertisers need to have a data management strategy that affords them control and oversight

of their channels. The K2 study demonstrated that media transparency was especially lacking with agency trading desks,

where opaque principal trading may be common.

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Want to know more about media non-transparency and how you can combat it? Check out these resources:

K2 Intelligence Report on Media Transparency

Media Transparency: Prescriptions, Principles, and Processes for Advertisers

Media Transparency Initiative: Overview

Master Media Buying Services Agreement Template

Resources for Media Audits & Media Agency Contract Compliance

Sources

13© Copyright 2016 by the Association of National Advertisers, Inc. All rights reserved.