As the guest speaker, Derek began his presentation by thanking CoreXalance for providing an opportunity for media agencies and media owners to get together and discuss important issues affecting the media industry. He believes that it is important that the two work together to "make the industry more efficient."
After having worked in the UK for five years, Derek returned to South Africa in 2003. He says that at the time, an agency used simple processes to ensure that a media owner would be paid on time.
Cut to 2013, and the processes, according to Derek, are far more complex because of an increase in the volume of media spend and the need to manage this increase efficiently.
From a finance point of view, he has identified two key issues between the agencies and the media owners namely: invoices with the incorrect information (such as date; campaign number etc.) and statements that are "not actually statements." Derek believes that the best way to resolve these and many other problems would be to "move towards electronic solutions instead of submitting huge batches of paperwork every month." He hopes that this will encourage a focus on bigger issues, rather than time being wasted on manually typing out information. He also thinks that there should be a mutual respect between the agency and the media owner when it comes to resolving queries and that both parties should always "stick to agreements and deadlines."
Managing risk in the industry is another key aspect that Derek highlighted. He emphasised the importance of ensuring that agencies have the correct (and efficient) internal processes and that the focus should always be on "but who is going to pay?" He then raised the importance of CoreXalance and the MCC and the way in which they monitor and manage the risk in the industry, for both media owners and media agencies.
Finally, Derek touched on the significance of the relationship between the media owner and the agency how important open communication with each other is, and how this can help reduce the risk and inefficiencies.
After the presentation, the media owners were given the opportunity to ask Derek and Lynnette a few questions.
CoreXalance would like to thank both Derek and Lynnette for attending, and they look forward to continue building excellent relationships between the players in the media industry.