ITV has this week issued a dramatic warning to media buyers against
reneging on their TV deals by seeking more regular audits of media
companies’ TV spends.
In a letter from ITV’s auditors, Rickards, broadcasters are requesting
more frequent and detailed access to TV buyers’ accounts to ensure that
they are on course to meet their TV deals.
A number of media companies have experienced problems with the ITV sales
houses recently after failing to meet promised spending levels.
TV deals are often struck on the basis of committed spend levels so that
TV buyers can secure volume discounts. But some media buyers have been
accused of promising sales houses more money than they actually have to
This has resulted in serious shortfalls that have left some media
companies reputedly owing millions of pounds to some sales houses.
The ITV companies are keen to stamp out this problem. A closer
examination of agencies’ TV spend records is thought to be one way of
Mark Craze, managing director of TMD Carat and the Institute of
Practitioners in Advertising’s Media Policy Group representative on TV
trading issues, commented: ‘The IPA feels this is a private matter
between individual agencies and individual ITV contractors.’