Situation 

Following rapid expansion, a technology client wanted to appoint a global media agency to handle its media planning and buying. Their media model was driven by their regions who all using very different approaches. It was felt that efficiency and effectiveness could be improved. We were employed to advise them on the optimal approach to agency management, media assurance and we conducted a media performance audit.

Obstacle

Every region had a relationship built organically by country managers over previous years. Significant resistance was shown to a more centralised approach, both strategic and operational. Each local office believed they were buying best media pieces and also they had best in market contracts ensuring financial transparency. 

Action

 We adopted a collaborative process in planning and executing, between global and local offices Collated across regions all media expenditure and media prices to create a media spend cube Benchmarked pricing in each market  and shared GAP with best in market norms. Asked local agencies to revisit contractual terms and set out new pricing guarantees.  Held a global / region pitch as required.

Results

• Improved contracted prices by 24% – $34.4m in year 1.
• Returned $4m to client in unbilled and other media rebates.
• Identified the largest variance in digital pricing.
• Used spend cube information to create dialogue and secure global partnerships with key suppliers and leverage expenditure.
• Contracted best in practice financial measures.
• Regions benefitted from better customer and media data, could utilise better content, access to rebates plus access to tools.