The Michigan Lottery (Lottery) seeks to contract with a media auditing firm (Contractor) to assess certain radio media buys executed by its General Advertising Services Agency (Agency). The goal is to verify that radio media funds are being spent in the most effective and efficient manner possible, with maximum value delivered to the Lottery. The Contractor will provide consulting services to validate that the Agency’s media buying practices meet Lottery and Agency expectations.
The Michigan Lottery strives:
- To maximize net revenues to supplement state education programs.
- To provide fun and entertaining games of chance.
- To operate all games and bureau functions with nothing less than total integrity.
Scope of Work:
The Contractor will examine four separate Lottery radio media buys from 2018 to determine if the buys achieved audience delivery goals and were billed and reconciled properly. The length of the buys may vary between two to four weeks, and the number of Michigan markets may vary based on product. The audit will focus on the following activities:
1. Media Buying
Analysis of radio buys to verify compliance in the following areas:
- Delivery of Lottery-approved media plan by market
- Delivery of Agency estimates by station
- Cost benchmarking versus current industry standards
- Compliance to Lottery media buying guidelines
- Identification, tracking, and confirmation of under-delivery restitution owed to Lottery
- Ad-ID/ISCI analysis of trafficked advertising assets.
2. Media Billing/Reconciliation
Analysis of all funds billed to Lottery by Agency for the same four radio buys, including review and comparison of the following:
- Invoiced amounts from stations purchased versus amounts billed to Lottery by Agency
- Amounts remitted by Agency versus station invoice amounts
- Length of time from station invoice date to payment date by Agency.
A written report will be provided by the Contractor which details findings of the audit. The report will also provide recommendations and an action plan for improving the Agency’s media-buying performance with the goal of maximizing the value of future Lottery radio media expenditures.
The Contractor will be required to travel to Michigan to meet with Lottery and Agency personnel to review audit findings and recommendations.
The Lottery, in its sole discretion, will perform background checks on all owners, officers, employees, and subcontractors and its employees prior to commencing any work under the contract. The scope is at the discretion of the State and documentation must be provided as requested. The Contractor will be responsible for all costs associated with the requested background checks.
March 5th, 2019
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