Assessing global TV performance and recovering value for a major US Grocer

Objective

A major US grocer lacked visibility into the delivery of its local TV spend, which spanned 70 markets.

The main goal was to identify and recover instances of under-delivery. With agency performance goals outlined in the contract, there was a need to evaluate these against agreed-upon buying guidelines.

Additionally, the grocer wanted detailed insights into station-level delivery, especially since it was a pre-paid expense, and sought to compare its costs to those of the broader marketplace.
Finding a long-term partner for continuous delivery validation was a key priority.

Our Approach

Ebiquity imported 100% of the agency invoice files for every TV/Cable station across the 70 local markets, opting for a comprehensive review rather than a sample-based approach. Strict rules were in place for the review:

• Each file was thoroughly checked to ensure no duplicates.
• Ebiquity ensured that every unit purchased had a delivery estimate from the agency.
• The agency was required to confirm that all files were complete and accurate before the assessment began.
• Buying guidelines were reviewed, with any violations flagged and valued.
• Actual delivered costs were calculated and compared to the benchmark.

Business Impact

After the initial review, the agency was tasked with improving delivery metrics. A limited number of buys were delivered within the best practice tolerance threshold, leaving the client owed $3.1M in under-delivered value. While there were minor violations of buying guidelines, benchmarking played a crucial role in the overall assessment, showing that the agency outperformed the marketplace benchmark in every period reviewed.

We collaborated with the client and agency on quarterly reports, and by the end of the year significant improvements were evident. The delivery trend increased steadily over a five-quarter period. Since the initial review, the agency has consistently booked under-delivery based on audit results. So far, 60% of the under-delivered value has been recovered. Buying guideline violations remain minimal, accounting for only 0.03% of total spend, and benchmarks continue to stay below marketplace costs.

We continue to monitor the client’s local TV delivery to ensure they receive full value for their investment and that the agency is managing their buys responsibly.