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Experiential Marketing

Although experiential and event marketing can be viewed very differently within the advertiser’s organisation and can be managed by different marketing teams, our financial compliance audit process focuses solely on the commercial aspects of the advertiser–agency agreement.

Our focus

Experiential or event marketing agreements are typically geared towards the creative strategy, design and production with the lead agency potentially managing an extensive portfolio of third-party vendors.

 

Our compliance audit reviews the client-agency agreement plus the respective Statement of Work ("SOW") that should include any rate-cards for resource, studio, expenses and third-party costs for the audit period or events under review.

 

The compliance audit analyses the lead agency costs, primarily resource costing with the third-party costs typically being pass through costs to client.  The experiential/event marketing compliance audit usually uncovers:

 

  • Mark-ups and/or rebates retained for the hire of venues and equipment.

  • Physical assets paid for by clients within the event budget, yet asset value retained or sold by the agency.

  • Poor reporting systems relating to reconciliation of time and third-party costs, especially with use of freelance producers who leave the project before final cost reconciliation.

  • Event budgets / WIP projects never reconciled to actual costs with cost contingencies remain unused.

  • Unclaimed aging credit notes.

  • Lack of control over staff expenses, with items such as subsistence, travel and hotels often not being in line with client’s T&E policy.

  • Overspends in “expenses” often offset against underspends in actual supplier costs.

  • Resources billed at incorrect rates resulting in overcharges.

  • Freelancers charged as agency FTE rather than at net cost as per the agreement.

  • Poor or no formal time tracking system to validate resources and time utilized as per the SOW.

  • Duplication of resource across in-house studio & core team.

  • Mark-ups incorrectly applied to in-house studio services.

  • Charges passed onto client outside of SOW scope and with no client approval.

  • Inadequate insurance and lack of signed employee confidentiality agreements.

Learn more

If you would like to learn more about the audit services Media Marketing Compliance provides and the marketing categories we specialise in, please click on the link below to find the right contact for your location.

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Other marketing categories we audit

Learn more about the other marketing categories Media Marketing Compliance provides audit services for by clicking on the links below.

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Media Planning & Buying

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Creative & Production

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Field Marketing & Merchandising

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Digital

Services