Transparent Third-party Relationships with ADvendio’s Enhanced Contract Commitments
Partnering with any third-party organization can be risky. Advertisers often have contracts with their publishers or agencies, which include varying financial targets over a predefined period of time, be that monthly, quarterly or yearly. Agreements and fail-safes are prearranged in order to give both parties peace of mind, reduce associated risk and ensure the financial success of the partnership. However, even with agreed parameters for these types of deals, without consistent progress tracking throughout the duration of the contract it is possible that underperforming advertisements can often be the cause of increased tensions between you and your third-party contractors when the time comes to renew contracts.
In order to ensure transparency and efficiency throughout the duration of your relationships with all third-party partners, ADvendio has enhanced the commitment functionality to automatically find and apply the relevant discounts to all active campaigns to which each specific commitment rule applies.
Complex, unmanaged contracts can lead to troubled relationships
Without keeping track of the progress between you and your key partners, underperforming deals and contracts can go unnoticed. When issues with relationships of this nature are not identified and managed early, this can spiral into a much larger concern once the review period approaches. This may lead to reduced profitability or a breakdown of relationships which is damaging to your bottom line, and your business reputation.
Contract commitments are generally complex, non-transparent, and if updated manually, can be prone to human error. It is also common that these agreements can be updated mid-contract for a number of reasons, which can be a nightmare for companies engaging in manual commitment reporting which is susceptible to data loss. Expected conditions can vary greatly between publishers and agencies which is why it is important to have a flexible system that can accommodate the complicated nature of these agreements.
Manage contract commitments flexibly thanks to smart automation and real-time reporting
As with any relationship between two parties, once you are able to identify minor issues as they arise it is much easier to resolve and further optimize performance. For instance, you may wish to offer a rebate in kind to a certain advertiser or publisher based upon digital ad impressions, i.e. for every 100,000 impressions, the advertiser receives 7% of impressions for free. The set up of a contract condition such as this is quick and easy within ADvendio, allowing you to define the conditions at the beginning of the deal. This enables automatic reporting on the effectiveness of this deal from day one. This provides you with accurate and transparent data that can be used to check in on the financial progress of your contracts to give you valuable insight into how particular discounts or benefits in kind are performing in reality vs expectations.
With ADvendio’s commitments feature, pricing agreements and contracts between you, your customers and their agencies can be tracked and monitored in real-time. This means that every price item is automatically calculated as per the agreement saving you time and effort while drastically reducing the number of invoicing queries on your third-party contracts.
ADvendio offers you complete flexibility in creating contract commitments to ensure your needs are suitably met. There are three different categories of commitment which can be simply managed within the system. Advertiser/Agency discounts which include; volume scaled discounts, rebates in kind, and other special discounts, or a combination of these as required. The second category is Agency Earnings which are used to manage item based agency earning calculations, and finally Third-Party Commissions, which can be used to track fixed commission for intermediaries based upon sold inventory. This level of flexibility within the system guarantees you the ability to simply set up your contract commitment parameters for any combination of variables that your contracts are based upon.
With our latest update to the commitments feature you can now apply a commitment to a media campaign per API call. This is something that we realized there was a need within the industry for following the discussion with and feedback from our clients. We constantly strive to ensure our customers have the tools and capabilities within ADvendio which help them to save time and focus solely on their core business, maximizing advertising revenue. With this enhancement the ‘apply commitments’ functionality finds and sets matching conditions, applying the relevant discounts from the matching commitment condition.
Maximize revenue through strong third-party relationships
Keeping a close eye on relationships between you and your key third-party publishers or advertisers in an integral part of any company engaging in advertising sales. By agreeing upon the financial conditions of these relationships at the beginning of the contract and inputting these parameters into the ADvendio system you can ensure consistent and transparent progress tracking throughout the duration of your contracts. Information is power, and having real-time data on the progress of your third-party contracts can help you simply and effectively optimize the performance of such contracts while ultimately building stronger relationships in order to maximize revenue.
Originally published at www.advendio.com on August 21, 2019.