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 Contract Compliance

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 examples of our work

Assignment 1: 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.

Assignment 2: 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.

Advice on media rebate contract compliance

Our media rebate forensic audits make sure that contractual compliance is achieved. If you would like to speak to Opus about our contract compliance services, please contact our Partner, Nicholas Parton.

Technical forensic accounting advice and assistance

“I am very pleased to recommend  Nicholas Parton, head of forensic accounting at Opus to anyone who is looking for an excellent forensic accountant. I am a practicing litigation solicitor for over 30 years. I have instructed Nicholas for a number of years. His expertise has produced what I required every time. Nicholas provides me with  technical advice and assistance in a timely and cost effective way. He places great emphasis on wanting to understand the client, their needs and expectations, as well as mine as instructing solicitor. His approachable manner makes him my “go to “ forensic accountant.”

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