Industrial procurement for media services

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Our servicesWe know that clients won’t always be looking for or want a full blown media pitch – it might not be what is required initially or indeed there may be easier ways to resolve a perceived issue. We therefore offer a range of consultancy services.

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Renegotiation of existing contracts

and terms

Agency performance

review

Media strategy development

Agency selection and media

procurement

Contract review and compliance

audit

Media neutrality analysis

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Why you might need us?• The ANA K2 Intelligence report of June 2016 didn’t really tell us anything we

hadn’t already known or suspected beforehand!• Agencies forward trading media, hiding rebates, forgetting unbilled media,

creating layers of margin inside programmatic ATDs – none of it is new news.• But are we really surprised that we are where we are?• Client procurement departments don’t generally have the detailed

knowledge they need to navigate the issues effectively. So they focus aggressively on the things they can understand – hourly rates, time spent, overhead allocations, profit mark up, rebate and unbilled media recovery. And generally they make unreasonable demands on agencies that narrow their top line margins unacceptably.

• Which is why agencies find other ways to make back the money!

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Why you might need us?• Furthermore, agency procurement matchmakers are mostly operating

outdated approaches that cannot cope with the new reality of how agencies extract value from client budgets.

• We also observe some pretty ‘cosy’ relationships with agencies and they have pitch processes that most industrial procurement specialists would regard as ’soft’.

• best&final however isn’t ‘soft’. We believe agencies should be fairly rewarded for outstanding performance but on the client’s terms.

• Our processes deliver the best value possible in media procurement today and it has a determined focus on transparency and competency’.

• We advise our clients to involve procurement and marketing staffs equally in the review process.

• The higher the media spend, the more value clients get from using us.

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Our ‘gold standard’ agency selection process• Client undertakes ‘creds-based’ agency reviews of a ‘long list’• We invite up to 6 agencies to commence the procurement process• Transparency and basic commercial issues are dealt with at stage 1• Agencies who achieve stage 1 hurdle rate may work on the brief and

pitch at the Competency stage 2 (typically 3 or 4 will go through)• Post-stage 2 evaluation looks at the combined results (with a

weighting set by the client) • A final 2 agencies enter stage 3 – a series of negotiation rounds

including a BAFO component• Selected agency enters consolidation stage, signs contract and

commences account transition work• best&final remain involved to work on compliance and monitoring for

the duration of the contract period including annual renegotiation

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It all starts with the transparency evaluation

“Transparency” in the media industry means the ability of an advertiser client, who has retained the services of an agency to plan and buy its media, to be able to see what media has been bought; where it appeared; what the net cost was; whether the media owner in fact ever invoiced the agency; whether any hidden bonuses or rebates were paid to the agency; what other benefits might the agency have received that could be traded for value, cash etc.; in the case of digital media what actual impressions were bought by media type; how viewability and media quality was measured and so on. It means that whether by agency report or client audit, the client has the right to see and understand every component of the value chain that the agency manages by virtue of the disbursement of the clients’ money.

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Stage 1 transparency evaluationData collected by a series of bespoke documents enabling100% like for like comparison of:-

• Media buying performance• Evidential process for media buying• Treatment of rebates/unbilled media• Approach to programmatic transparency• Terms & Billings process• Team provision & cost

Plus unequivocal agreement at this stage to our contract templateand post pitch compliance processes

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Stage 2 competency evaluationWe work with the client to produce a high quality brief to enable the agencies to showcase their talent and planning skills:-

• People experience• Planning insights• Quality of ideas• Performance delivery• Strength of account management• Response to brief• Talent management and development

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People experience Approach to talent development

Planning insights Quality of ideas

Performance delivery Strength of Account Management

Response to brief COMPETENCY

Led by marketing

Combined results

(weighted)

Led by procurementTransparency score

Com

pete

ncy

scor

e

Agency evaluation

Top two agenciesselected

Post-stage 2 evaluation process

Media buying performance TRANSPARENCY

Evidential process Rebates/unbilled etc.

Approach to programmatic Terms & billings

Team cost

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Stage 3 concluding process• Stage 3a – final 2 agencies are invited to improve media rates and

team hourly rates – to be submitted quickly• Stage 3b - individual briefings for both agencies and an introduction

to the proposed remuneration model (agreed with client) which agencies are invited to accept

• Stage 3c – agencies are invited to make a BAFO• Stage 3d – preferred agency is selected and informed

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Our own transparency• A time based project fee is agreed up front with the client for a detailed

specification of works which includes all stages outlined in this presentation – this will include a daily rate for all personnel with a declared mark up to cover NI and other employment costs. There is then a mark up for profit.

• An agreed add on day rate for all personnel is also agreed up front to cater for unexpected additional works to the forecast schedule.

• This is the only consideration we receive for the entire process.• Any agency offer of rebates or commissions will be declined, reported

to the client and likely render the agency dismissed from the process.• The client is at liberty to have copies of all internal working documents

and internal reports upon request.• Every stage of our strategic and tactical workbook will be agreed with

the client before we act – you determine how hard we press.

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Client sideConsulting - agen-cies & media ownersMedia owner sideMedia agency side

About Mike Moran

“Starting best&final felt like the inevitable conclusion to my career thus far. When I left the role of COO at Havas Media/Arena I decided that it was time to serve client-side again. I am truly excited about the huge opportunities our industrial approach can unlock”.

Mike is unique in having 360° experience ofour industry over 30 years – and at C-suite level.

Directionof travel

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Mike Moran - CV HighlightsKey roles• Marketing Director, Ford of Britain• Managing Director, Ford España S.A.• Marketing Director, Toyota (GB) Ltd & Lexus (GB) Ltd• Chief Commercial Officer, Toyota (GB) Ltd• Worldwide Director of Marketing & Strategy, RWE Thames Water AG• Managing Partner, The Orchard Consultancy• CEO, CBS Outdoor Ltd• COO, Havas Media Group• CEO, Insomnis Media

Industry service• Member, Government Advisory Committee on Advertising (9 years)• Chairman, ISBA Executive Committee, ‘02 – ’04 (started COMPAG!)• Member of General Media Panel, ASA (16 years to date)• Fellow of the Marketing Society (since 2001)

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Industrial procurement for media servicesContact: Mike Moran, CEOEmail: mike.moran@bestandfinal.co.uk Mobile: 07747 643830

best&final is a trading name of The Orchard House Consultancy Ltd

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