Media buying is a specialist activity, separate from media planning.And clearly, the concern of the hour is "transparency". Transparency between advertiser, agency & media owner/seller. Call it a sign of the times. Or a reflection of the increasingly online nature of business. (Transparency & online business go hand in hand.)

History of Advertiser-Agency Auditing
* Many large advertisers have been auditing the books of their media releasing agencies - mainly to ensure that they did not retain excess margins.
* As systems became computerized, this progressed to checking outputs from their computer.
* The next step for auditors was to ensure that outputs were authentic, viz. from the software system.
* This exposed them to the software used, leading to questions like whether data displayed correlated correctly to transactions entered. And whether the system permitted editing of transactions entered earlier.
* Which in turn lead to a full-fledged system audit with special focus on controls & balances.
* And (with web-enabled software and soon, electronic transactions), security has become a major issue.

Interestingly, unlike statutory audits, the advertiser paid the auditor to audit his agency. Thereby ensuring the auditor was free from undue influence.

So how is a media audit different ?

What is a Media Audit?
A media audit encompasses one or more of the following components-
* Analyses & assessment of media deals & purchases
* Bill reconciliation & Deal reconciliation
* Recovery of refunds & compensation from media
* Assessment of errors & wastage
* Evaluation of existing media buying execution & monitoring processes
* Availability & usage of media tools & databases
* Estimation of innovation factor
* Benchmarking with industry practices
* Confidentiality & security leaks (security audit)

In general, a media audit is designed to upgrade performance of the guardians of the media budget. For example, a full media audit may start with evaluation of plan compliance, appraisal of deals and go right up to tracking history of payments made (how much & when) to media. It may also include review of buying guidelines. And evaluate possible bias towards media owners.


Who needs a Media Audit?
A media audit is usually recommended for all committed advertisers, especially those with large budgets. A media audit may also be commissioned by the agency/AOR themselves. This would be similar to an Internal Audit for reporting & improving performance of a branch office or for a specific account.

Fees Structure
Media auditors must be objective. That means a media audit firm must not be involved in activities like media consulting, media marketing, and of course media buying. Media auditors are usually paid fees based on effort, with incentives based on tangible benefits like refunds/compensation. Media audit fees should not be linked to size of media spend budgets.

The Future
Today media audits are performed post-activity. However, the age of electronic transactions drawing nearer everyday. Leading to increasing demands for transparency. Along with commensurate technological advances in e-security. So future systems could come with built-in "windows" which would permit media auditors to conduct & report live audits. Leading to 100% transparency.

And by the way, the time seems ripe for "enlightened" AORs to commission internal media audits to re-assure their clients.