Print advertising is one of the advertisers' significant expenditures relative to their operational expenses. The ability to demonstrate a positive or prompt return from advertising makes the advertising budget as important as those expenditures spent on materials, salaries and equipment. Financial Managers are responsible to demonstrate that adequate controls are in place.

Over 15 years and 2 million print media placements analyzed reveal that over 35% of placements are never substantiated. Over 720,000 insertions where the vendor never provided supporting proof of performance documentation other than an invoice. Yet, the invoice was paid in full.

Did the ad appear in the publication on the date it was scheduled?

Did the ad meet the advertisers placement requirements?

Did the advertiser qualify for a make good or reduced rate due to human error?

No one knows, because no one took the responsibility on behalf of the advertiser to demand proof of performance documentation before payment was rendered. The result, the advertiser may have over paid for print placements by a significant amount and never knew it.

Unless the advertiser is demonstrating oversight of their media teams buying practices, these advertisers are throwing money out the door with no 'return on investment'.

Do you think this couldn't be happening to you?

Do you think that the Newspapers, Magazines and Trade publications involved only publish in small markets?

In 2008, a major telecommunications company scheduled over 40,000 print media placements. Over 19,000 (48%) were never substantiated because the advertiser did not demand supporting proof of performance documentation before payment was rendered. Of the 19,000 insertions, Newspapers publishing in 'A' circulation markets accounted for over 40% of non-documented proof of performance. Over 13% of Magazine and Trade publications didn't provide supporting proof of performance documentation either.

Ask this question of yourself.... Would you pay for anything that you couldn't substantiate? So why would you let your company?

Print Audit services provides independent third party verification services for local, regional and national advertisers and their agencies of record. Contact abeuscher@printauditservices.com if you care to find out.