MEDIA AUDIT FOR REVENUE SHARE AGREEMENTS
Where media sites are being operated on a revenue share type agreement it is always recommended that the landowners interests are protected by independent media audit to ensure the declared financial reporting accurately reflects the clients understanding of how the contract operates.
This is particularly relevant where 'average' or 'mean' allowances are cited as these may in fact be distorted by certain critical assumptions that may not, in fact, reflect the true position. For example when an individual site forms part of a larger campaign.
Whilst each case is unique, Building Wraps/Banners appear the most likely area requiring detailed investigation as it is relatively simple for 'production, print and installation costs' to be loaded to distort a sites performance. Thus, the contractor is making a profit on this element which should have been included within the profit share calculation and these figures can be substantial.