R4 Advertising / Annual Media Commitment

Annual Media Commitment

A 12-month commercial agreement between the Client and R4 Advertising covering Qualifying Media Investment, Contract VBD, Contractual Trade-Up Value, commercial audit and reconciliation.

£1,000,000
Annual Media Commitment
50.0%
Contract VBD
£500,000
R4 Advertising Contractual Trade-Up Commitment
£1,500,000
Contracted Total Media Value
12 Months | Campaign-Level Audit | Annual Reconciliation
Model Your Annual Media Commitment

01Commercial Terms

Client
Annual Media Commitment£1,000,000
Contract Period12 months
Qualifying Media InvestmentAs defined in the executed agreement
Individual Campaign ApprovalClient approval required
R4 Advertising
Contract VBD50.0%
Contractual Trade-Up Commitment£500,000
Contracted Total Media Value£1,500,000
Commercial AuditPre-Flight + Post-Flight
Annual ReconciliationClient + R4 Advertising
  • The Client commits the Annual Media Commitment.
  • R4 Advertising commits to the Contractual Trade-Up Commitment.
  • Both commitments are deployed through approved Qualifying Campaigns and reconciled through the commercial audit process.

02Contract VBD

Annual Media CommitmentContract VBDContracted Media Value
£500,000 to £749,99942.5%Investment + 42.5%
£750,000 to £999,99945.0%Investment + 45.0%
£1,000,000+50.0%Investment + 50.0%

Contractual Trade-Up Commitment

Qualifying Media Investment × Contract VBD

Contracted Total Media Value

Qualifying Media Investment + Contractual Trade-Up Commitment
  • Contract VBD establishes R4 Advertising's minimum aggregate Contractual Trade-Up Commitment against the Client's Qualifying Media Investment.
  • The Annual Media Commitment and applicable Contract VBD establish the minimum Contracted Total Media Value for the Contract Period.
  • Contract VBD does not represent a guaranteed discount against each individual media transaction.
  • The Contractual Trade-Up Commitment establishes the minimum Trade-Up Value R4 Advertising contracts to deliver. It does not cap the commercial value that may ultimately be returned to the Client.

03Client Obligation

Annual Media Commitment

  • The Client commits to place the agreed Annual Media Commitment as Qualifying Media Investment through R4 Advertising during the Contract Period.
  • The Annual Media Commitment may be deployed across multiple Qualifying Campaigns during the Contract Period.
  • Each Qualifying Campaign remains subject to Client approval.
  • Before activation, the Client is presented with the complete commercial position for that campaign, including Client Investment, Contract VBD, Contractual Trade-Up Value and Contracted Media Value.
  • Approval confirms the Client's approval of that campaign's complete commercial position.
  • Campaign approval does not amend the Annual Media Commitment unless otherwise agreed in writing between R4 Advertising and the Client.

Qualifying Media Investment has the meaning given in the executed Annual Media Commitment Agreement.

Client Contractual Position
Annual Media Commitment£1,000,000
Contract Period12 months
Client Commitment£1,000,000

04R4 Advertising Obligation

Contractual Trade-Up Commitment

R4 Advertising's Annual Contractual Trade-Up Commitment is the minimum Trade-Up Value established by applying the Contract VBD to the Client's Qualifying Media Investment.

£1,000,000
Qualifying Media Investment
50.0%
Contract VBD
£500,000
R4 Advertising Contractual Trade-Up Commitment
£1,500,000
Contracted Total Media Value
  • The Contractual Trade-Up Commitment is deployed through the commercial positions agreed for individual Qualifying Campaigns during the Contract Period.
  • Each campaign's Contracted Media Value is established before activation and approved by the Client.
  • R4 Advertising is responsible for delivering and evidencing that approved Contracted Media Value.
The Client commits the investment.R4 Advertising commits the trade-up value.The Client approves the Contracted Media Value.

05Contracted Media Value

The complete commercial position is established before Client approval and activation.

  • The Annual Media Commitment determines the applicable Contract VBD, which establishes R4 Advertising's aggregate minimum Contractual Trade-Up Commitment for the Contract Period.
  • That annual commercial position is deployed through individual Qualifying Campaigns.
  • For each Qualifying Campaign, R4 Advertising establishes and evidences the complete proposed commercial position before presenting it to the Client for approval.

Campaign Commercial Position

£100,000
Client Investment
50.0%
Contract VBD
£50,000
Contractual Trade-Up Value
£150,000
Contracted Media Value
  • The £150,000 Contracted Media Value comprises the Client Investment and Contractual Trade-Up Value within the complete campaign position approved by the Client.
  • The Pre-Flight Commercial Audit evidences the media schedule and Agreed Commercial Benchmark supporting that commercial position before approval and activation.

Agreed Commercial Benchmark

  • The Agreed Commercial Benchmark records the valuation basis against which the Contracted Media Value for the campaign is established.
  • The applicable benchmark is identified and evidenced within the Pre-Flight Commercial Audit before Client approval.
Established → Benchmarked → Evidenced → Approved → Contracted → Activated

Value Above The Contracted Position

The Contract VBD is the floor.
It is not the ceiling.

  • R4 Advertising's Contractual Trade-Up Commitment establishes the minimum Trade-Up Value contracted against the Client's Qualifying Media Investment.
  • Where further attributable media-owner value is subsequently realised, including qualifying Agency Volume Bonuses, rebates or credits, that value is also returned to the Client through further Trade-Up Value.

Agency Volume Bonus (AVB)

An Agency Volume Bonus is a retrospective rebate, credit or other media-owner benefit arising where R4 Advertising achieves agreed aggregate spending, volume or other qualifying criteria over a defined period. Only the proportion properly attributable to the Client's Qualifying Media Investment is relevant to that Client's commercial position.

Attributable Media-Owner Value

Attributable Media-Owner Value means a rebate, credit, Agency Volume Bonus or other qualifying media-owner benefit subsequently realised by R4 Advertising and attributable to the Client's Qualifying Media Investment in accordance with the Annual Media Commitment Agreement. The detailed attribution methodology is governed by the executed Annual Media Commitment Agreement.

Illustrative Position Illustrative Commercial Example

£1,000,000
Client Annual Media Commitment
50.0%
Contract VBD
£500,000
Minimum Contractual Trade-Up Commitment
£1,500,000
Minimum Contracted Total Media Value

Minimum Contracted Position → Value Realised Above The Contracted Position

£40,000
Subsequent Attributable Media-Owner Value
£540,000
Total Trade-Up Value
£1,540,000
Total Media Value

Figures exclude VAT

  • The £40,000 does not replace the £500,000 minimum Contractual Trade-Up Commitment.
  • It does not retrospectively reduce the original Contractual Trade-Up Commitment.
  • It does not reduce the Client's Annual Media Commitment.
  • It is value realised above the minimum contracted position and returned to the Client.

Value Established Before Campaign Approval

Forms part of Client Investment plus Contractual Trade-Up Value, equal to the Contracted Media Value. It is benchmarked and evidenced through the Pre-Flight Commercial Audit before Client approval.

Value That Cannot Be Known Until Later

  • It is not invented or estimated as delivered Trade-Up Value.
  • It is not used to increase the Pre-Flight Contracted Media Value.
  • It is recognised only once it has crystallised and can be properly attributed.
  • The attributable amount is recorded in the Live Commercial Ledger.
  • The attributable amount is returned to the Client through further Trade-Up Value.
  • Where media-owner value is generated across aggregate R4 Advertising investment, only the proportion attributable to the Client's Qualifying Media Investment is credited to that Client.
  • The attributable amount is established and evidenced in accordance with the Annual Media Commitment Agreement, and recorded in the commercial audit trail and Live Commercial Ledger.
  • Attributable value is returned to the Client as further Trade-Up Value under the Annual Media Commitment model.
Contracted → Delivered → Crystallised → Attributed → Returned

The website states the commercial principle. The executed Annual Media Commitment Agreement governs the attribution methodology and mechanics.

06Commercial Control Sequence

01
Established

R4 Advertising establishes the complete proposed campaign commercial position.

02
Benchmarked

The commercial value is established against the Agreed Commercial Benchmark.

03
Evidenced

The media schedule and valuation supporting the proposed Contracted Media Value are evidenced.

04
Approved

The Client approves the complete campaign commercial position.

05
Contracted

The approved position becomes the campaign Contracted Media Value.

06
Activated

R4 Advertising activates the approved media schedule.

07
Delivered

The media runs.

08
Audited

The Post-Flight Commercial Audit evidences actual delivery.

09
Reconciled

Actual delivery is reconciled against the Client-approved Contracted Media Value.

Every Qualifying Campaign moves through the same Commercial Control Process.

07Pre-Flight Commercial AuditCompleted Before Client Approval and Activation

Audit FieldCommercial Position
Client Investment£100,000
Contract VBD50.0%
Contractual Trade-Up Value£50,000
Proposed Contracted Media Value£150,000
Agreed Commercial BenchmarkEvidenced
Media Inventory / ScheduleIdentified
Media QuantitiesIdentified
FormatsIdentified
DurationIdentified
  • The Pre-Flight Commercial Audit establishes and evidences the complete commercial position presented to the Client for approval.
  • It identifies the media schedule and Agreed Commercial Benchmark supporting the proposed £150,000 Contracted Media Value.
Pre-Flight Commercial Position
Client Investment£100,000
Contractual Trade-Up Value£50,000
Proposed Contracted Media Value£150,000
Commercial BenchmarkEvidenced
Client ApprovalPending
Pre-Flight Audit → Client Approval → Contracted Media Value → Activation

08Contracted Media Schedule

The Contracted Media Value is identifiable in the Client-approved media plan.

Illustrative OOH Campaign

Commercial Position

£100,000
Client Investment
50.0%
Contract VBD
£50,000
Contractual Trade-Up Value
£150,000
Contracted Media Value

Client-Approved Media Schedule Illustrative Commercial Example

Media FormatSchedule StatusAgreed Commercial Value
48-Sheet BillboardsClient-approved schedule£70,000
Large Format DigitalClient-approved schedule£45,000
Bus SupersidesClient-approved schedule£20,000
Rail 6-SheetsClient-approved schedule£15,000
Contracted Media Value£150,000

Figures exclude VAT

  • The Client approves the complete media schedule and its Contracted Media Value before activation.
  • The Post-Flight Commercial Audit subsequently reconciles the Client-approved schedule against actual delivery.
OOH

Sites | Panels | Formats | Duration | Agreed Value

Radio

Spots | Airtime | Frequency | Duration | Agreed Value

Television

Spots | Airtime | Impacts | Inventory | Agreed Value

Digital

Impressions | Inventory | Reach | Frequency | Agreed Value

09Post-Flight Commercial AuditCompleted Following Delivery

Reconciliation FieldApprovedActual
Client Investment£100,000£100,000
Contract VBD50.0%50.0%
Contractual Trade-Up Value£50,000£50,000
Contracted Media Value£150,000£150,000
Media ScheduleApprovedDelivered
Media Value Delivered£150,000£150,000
Variance£0£0
  • The Post-Flight Commercial Audit reconciles the Client-approved commercial position against actual media delivery.
  • Media Value Delivered is evidenced against the approved media schedule and the applicable commercial audit.
  • If Media Value Delivered is below the approved Contracted Media Value, the resulting Delivery Variance is recorded and treated in accordance with the executed Annual Media Commitment Agreement.

Post-Flight Audit Status Satisfied

10Campaign Reconciliation

Each Qualifying Campaign is reconciled against the commercial position approved by the Client before activation.

Approved Value Delivered

Approved Contracted Media Value£150,000
Media Value Delivered£150,000
Delivery Variance£0

Status
Satisfied

Approved Value Under-Delivered

Approved Contracted Media Value£150,000
Media Value Delivered£145,000
Delivery Variance-£5,000

Status
Subject to Contractual Reconciliation

Approved Value Exceeded

Approved Contracted Media Value£150,000
Media Value Delivered£155,000
Delivery Variance+£5,000

Status
Credited to R4 Advertising's Trade-Up Position

Campaign-level Delivery Variances are recorded in the Live Commercial Ledger and reconciled against the annual contractual position in accordance with the Annual Media Commitment Agreement.

Overdelivery does not reduce the Client's Annual Media Commitment.

Any permitted credit applies only against R4 Advertising's Contractual Trade-Up position.

Every campaign is approved.Every campaign is audited.Every variance is reconciled.

11Live Commercial Ledger

Current Contract Position

Client Position
Annual Media Commitment£1,000,000
Qualifying Investment Activated£620,000
Remaining Client Commitment£380,000
R4 Advertising Position
Full-Year Contractual Trade-Up Commitment£500,000
Contract VBD50.0%
Accrued Trade-Up Commitment to Date£310,000
Trade-Up Value Delivered and Evidenced£327,500
Current Delivery Variance+£17,500
Remaining Full-Year Trade-Up Commitment£172,500
Total Media Value Delivered to Date£947,500
  • The Live Commercial Ledger aggregates the Client-approved and Post-Flight audited position of Qualifying Campaigns during the Contract Period.
  • It separately records Qualifying Media Investment, the Contractual Trade-Up Commitment, Trade-Up Value delivered and evidenced, any Subsequent Attributable Media-Owner Value, Total Trade-Up Value returned, Delivery Variance and Total Media Value delivered.

Contractual Value

The minimum Trade-Up Value contracted through Contract VBD, delivered and evidenced campaign by campaign and independently auditable.

Subsequent Value Realised Above The Contractual Position

Attributable Media-Owner Value, including qualifying Agency Volume Bonuses, recorded once crystallised and attributed, and returned to the Client through further Trade-Up Value.

12Client Reconciliation

If Actual Qualifying Media Investment falls within a lower Contract VBD Tier at the end of the Contract Period, the Contract VBD is recalculated against the tier actually achieved.

Commercial PositionContractedActual
Qualifying Media Investment£750,000£500,000
Contract VBD45.0%42.5%
VBD Difference2.5 percentage points
Client Reconciliation Amount£12,500
£500,000 × 2.5% = £12,500

The Client Reconciliation Amount restores the commercial position to the Contract VBD applicable to Actual Qualifying Media Investment.

13R4 Advertising Reconciliation

Commercial MeasureContractual PositionDelivered Position
Actual Qualifying Media Investment£1,000,000£1,000,000
Contract VBD50.0%50.0%
R4 Advertising Contractual Trade-Up Commitment£500,000-
Trade-Up Value Delivered against Contractual Commitment-£460,000
R4 Advertising Trade-Up Shortfall-£40,000
Subsequent Attributable Media-Owner Value-£0
Further Trade-Up Value Returned to Client-£0
Total Trade-Up Value Returned£500,000£460,000
Total Media Value Delivered£1,500,000£1,460,000
  • At the end of the Contract Period, R4 Advertising's Contractual Trade-Up Commitment is reconciled against the Trade-Up Value actually delivered and evidenced.
  • Any R4 Advertising Trade-Up Shortfall is treated in accordance with the executed Annual Media Commitment Agreement.
  • Subsequent Attributable Media-Owner Value is reconciled separately and does not offset or reduce R4 Advertising's Contractual Trade-Up Commitment or any Trade-Up Shortfall against that commitment. The Contractual Trade-Up Commitment remains independently auditable.
Client Commitment reconciled.R4 Advertising Commitment reconciled.

14Annual Audit Position

Client
Annual Media CommitmentContracted
Qualifying CampaignsClient Approved
Actual Qualifying Media InvestmentAudited
Client ReconciliationCalculated
R4 Advertising
Contractual Trade-Up CommitmentContracted
Campaign Contracted Media ValueClient Approved
Media Value DeliveredPost-Flight Audited
R4 Advertising ReconciliationCalculated
Commercial Control
Pre-Flight Commercial AuditEvery Qualifying Campaign
Client ApprovalEvery Qualifying Campaign
Post-Flight Commercial AuditEvery Qualifying Campaign
Annual ReconciliationBoth Parties
Two parties.Two commitments.Every campaign approved.Every campaign audited.One annual reconciliation.

R4 Advertising

Media value.
Contracted.
Approved.
Delivered.
Audited.

£1,000,000
Client Annual Media Commitment
£500,000
R4 Advertising Contractual Trade-Up Commitment
£1,500,000
Contracted Total Media Value
Model Your Annual Media Commitment

This page provides a commercial overview of the R4 Advertising Annual Media Commitment and does not constitute a standalone offer or agreement. Qualifying Media Investment, Contract VBD, valuation, campaign approval, delivery, audit and reconciliation are governed by the executed Annual Media Commitment Agreement. Where this overview and the executed agreement differ, the executed agreement prevails.