Cost benchmarking – Price Position©
Cost Benchmarking with Price Position© allows for identifying the potential for cost improvement in media purchasing. It is particularly significant for advertisers who have conducted pitch process without the support of an Auditor or those who have not conducted such processes for a long time. Regardless of the verification of buying conditions, we support Clients in media optimizations, which often can generate greater savings than those resulting from improved buying costs.
Why is it worth it?
- Media costs change on an annual basis
- New media suppliers emerge, making it important to have confirmed media buying costs for them
- New forms and formats of media suppliers appear, necessitating confirmed media buying costs
- Suppliers change their commercial policies and methods of charging
- Market conditions change, such as the introduction of so-called Agency owned media and the associated practices of setting and verifying prices
- The absence of updated buying conditions for a given year equates to full freedom in setting costs in media plans and media buying briefs
What to expect?
- Updating buying guarantee forms to reflect the current buying landscape
- For TV campaigns: indicating the market costs based on commercial policies and benchmarks
- For Digital campaigns and other media: indicating the market costs, including technical or technological costs, based on commercial policies and/or benchmarks
- Determining the market level of remuneration for services rendered
Frequently asked questions
What is the value of the cost pool in TV?
Currently, in Poland, for most advertisers and most TV stations, commercial policies very precisely define buying conditions. Therefore, a key element in confirming cost attractiveness is verifying the conditions for in accordance with the stations commercial policies for the given year. This process includes analyzing conversion indices and buying methods, as well as pricing elements related to the quality of the campaign. Detailed analysis of buying conditions provides a much more clear picture of cost attractiveness than the result of the TV buying pool, which usually does not consider various aspects of the specifics of different advertisers. Furthermore, when using the pool, we work with average values, often without the ability to verify the accuracy and timeliness of the data inputs feeding the pool.
Should the buying conditions of digital channels on auction platforms, such as those used for programmatic, social, YouTube, or search, be a subject of commitment within buying guarantee tables?
Absolutely not. In the context of auctions, costs change in real-time and should not be subject to contract. At Double Check, we have proven methods for verifying auction purchases, but they are not guaranteed in our contracts. We are aware of practices by other auditors who force Agencies to make contractual declarations in this regard. This can lead, in case of rising costs, to agencies not using these media or purchasing lower-quality campaigns. Guaranteeing costs in auction purchases in contracts is seen by us as providing Advertisers with a false sense of security regarding the overall costs of Digital media.