FAQs

Is there a way we can get some transparency and accountability in the agency’s costs?

Indu Sharma, marketing procurement specialist at CCS&N, writes:

There are a number of steps that you can take to ensure transparency and accountability:

Make sure any time charges or studio costs are as per the menu of charges or hourly rates agreed in the contract.
Ensure that third-party (supplier or subcontractor) costs or quotations are itemised on production estimates.
Ensure that any changes to the “briefs” or requirements are similarly priced for you.
Arrange to conduct a financial audit of the agency to ensure that it is complying with the terms of the agreement.
A combination of regular price breakdowns/ confirmations and audits should give you adequate transparency of costs and accountability. However, ensure that you hire a company that specialises in auditing advertising agencies.

The obvious benefits are:

They know the advertising jargon and which areas are the best to investigate.
Because they know how agencies operate, they are more cost-effective and they can finish the audit more rapidly.
They inspire confidence and co-operation from the agencies because of their knowledge of the advertising world.
They can also look beyond the financial audit and detect areas that are operating inefficiently.