How To Know If Your Media Agency Contract Is Any Good?
Updated: Apr 10
The core of a transparent and successful relationship between an advertiser and its media agency is a well-thought-out contract.
It is therefore extremely important for you to ensure that your media agency contracts promote your best interests, deliver genuine transparency, and audit rights.
It is known that media agencies design their own contract templates for them to hide behind, and making sure it is used by as many of their clients as possible. Most of the media agency contracts we reviewed have been designed by media agencies. And this needs to change now. You need to regain control and use your own media contract template.
You therefore need to ensure that you have a best-in-class contract in place with your media agency. This will, in turn, deliver genuine benefits to your organisation, such as:
1. Significant Efficiencies:
Improved media prices and improved cash rebates will generate significant savings which can be guaranteed through an effective PRIP scheme, which needs to be part of your media agency contract.
2. Improved Media Mix Optimization:
By focusing on the right business KPIs, and including those to the media agency remuneration through a best-in-class PRIP scheme will ensure that the media mix recommendations from your media agency are genuinely designed to benefit you, not them.