Minimising media value erosion through inflation data analysis

Objectives

As part of our client’s contractual agreements with the agency, the performance versus cost commitments is adjusted by media inflation in each market; the higher the inflation, the more our client pays.

As inflation is typically reported by the agency, our client recognised the need to validate these figures in order to prevent unjustified corrections and value erosion.

Our Approach

We run an extensive Agency Commitment Tracking programme across EMEA, APAC and LATAM to accurately measure performance versus unit cost guarantees and identify the areas for attention.

As part of the programme, we validate and challenge agency-reported inflation using our extensive media investment data pools and market expertise to ensure fair and accurate inflation figures:

• Compare versus reported market averages, per media
• Challenge factoring for client differences vs market average (e.g. premium, audiences, etc.)
• Establish final, aligned inflation figures
• Business Impact

Our analysis delivers a robust, structured process to independently manage inflation corrections; helping to gain value improvement versus initial agency reported figures.

Ultimately, it has delivered our client $31M in value over the course of 4 years. Realised adjustment to the annual average inflation ranged from 0.7%-2.7% in the benefit of our client.

Our unparalleled database and team of local, on the ground experts makes us the only viable party to help our clients control inflation on a global scale.