Common media billing errors
Advertising invoices rarely look like other supplier bills. They cover placements, flights, impressions and rates, often through an agency. The paperwork that should tie them together is the insertion order. When invoices and orders drift apart, you pay for media you did not buy. This article lists the errors to look for and how to test them.
Start with the order
An insertion order records what was bought: placements, dates, rates, volume and any cap on billing. Every invoice line should trace back to a term in a signed order or a written change. A line that cannot be traced is the first thing to question. If your team agrees changes by phone or chat, ask for them in writing, because the invoice will follow the paperwork, not the conversation.
Rate and pricing errors
An industry guide to auditing insertion orders describes several pricing faults:
- The billed rate differs from the negotiated rate
- A blended average on the invoice hides different rates on the order
- A volume discount was never applied
- Tax or currency does not match what was agreed
Compare the rate on each invoice line with the order, then recalculate the extension from quantity and rate.
Delivery errors
The order promises delivery. The invoice should reflect what was delivered.
- Under-delivery. A guaranteed volume fell short, and no credit or replacement was recorded.
- Wrong dates. A campaign ran late or ended early without an approved change.
- Over-delivery billed. The order caps billing at the committed amount, but the invoice charges for more.
- Unlisted placements. Ads ran on sites or in programs the order never named.
When a seller delivers less than promised, the usual remedy is a makegood, meaning replacement exposure. A ClickZ article on makegoods notes that many agreements say little about shortfalls, so the remedy must be negotiated after the fact. Put makegood terms in the order before the campaign starts.
Billing errors
- The same placement or period billed twice
- Cancelled placements still charged
- Fees for data, ad serving or measurement that the order did not list
- Reports from the seller that disagree with third-party verification
Where agencies sit in the chain
If an agency buys on your behalf, ask what rights you have to see the underlying invoices and order records. Some contracts give the client an audit right. Others do not. [CONFIRM: a partner firm supplies and approves any statement about media review scope]
A checklist for your next invoice
- Match the invoice to the signed insertion order and any written changes.
- Check each rate against the order, line by line.
- Compare billed volume with delivery reports.
- Check flight dates against the approved schedule.
- Look for repeated placements, and for cancelled items that still appear.
- Identify any fee that the order does not mention.
- Ask for makegood or credit on any shortfall, and record the answer.
- File the order, the invoice and the correspondence together.
When to ask for outside help
A media audit is a review of invoices against orders and contracts. A partner firm asks for the orders, the invoices and the delivery reports, then reports what does not tie. The same questions apply as in other cost reviews: what the contract says, what was billed, and what was paid. Our guide to common supplier contract errors covers the contract side, and reading a vendor credit or refund covers what to do when a credit arrives.
If your spend runs through a large number of small buys, a review still starts with the same documents. Use the request page to describe what you have.
Sources
- What Is an Advertising Insertion Order, and How Should It Be Audited?, Dash
- Makegood, Shmakegood, ClickZ
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