Meaning
Financial audit procedures in digital media distribution compare the campaign delivery logs of both buyers and sellers to resolve reporting discrepancies. Through gross impression reconciliation, partners align their billing records before finalizing the invoice amount. This process ensures that payment is based on mutually verified delivery data.
Audit Procedure
The process begins at the end of each billing cycle when both parties exchange their raw impression logs. Utilizing gross impression reconciliation allows the media buyer to identify duplicate, unrendered or out-of-geo impressions. This evaluation identifies the specific areas where the publisher’s count differs from the buyer’s measurement.
Discrepancy Settlement
Contracts typically permit a minor variance of around two percent between the two reported numbers. When the difference exceeds this margin, the parties must investigate the underlying causes or agree on a compromise. If no agreement is reached, the buyer’s measurement usually takes precedence according to standard contract clauses.
This clause is a standard inclusion in most master services agreements to speed up the resolution of payment disputes.
Payment Adjustment
Final invoices are updated to reflect the agreed delivery numbers once the process is complete. This adjustment prevents overpayment for impressions that never occurred or failed to meet quality standards. Consequently, this financial adjustment directly protects the advertiser’s distribution margins.