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What you need first

• Post-flight delivery report for the exact target audience contracted, from the seller or measurement provider (Nielsen/AGB-equivalent)
• Contracted GRP guarantee and CPP from the signed insertion order
• Under-delivery tolerance percentage from the IO's make-good clause
• Current rate card CPP for the make-good flight window, from the seller's rep
• Target audience definition used in both the IO and the audit, to confirm like-for-like GRPs

The procedure

1. Pull delivered GRPs from the post-flight audit for the contracted target audience
2. Pull the contracted GRP guarantee, CPP, and tolerance percentage from the IO
3. Apply the tolerance to the guarantee to get the trigger floor and confirm delivery fell below it
4. Calculate the GRP shortfall as guarantee minus delivered, not floor minus delivered
5. Value the shortfall at the original contracted CPP to get make-good owed in currency
6. Convert that currency value into make-good GRPs at the seller's current CPP for the make-good flight
7. Round the resulting GRPs up and issue the make-good request to the seller with the workings attached

Worked through with numbers

Guarantee: 600 GRPs on W25-54, contracted CPP €380, tolerance 5%. Floor = 600 × 0.95 = 570 GRPs. Delivered per audit: 552 GRPs, which is below the 570 floor, so make-good triggers. Shortfall = 600 − 552 = 48 GRPs. Value owed = 48 × €380 = €18,240. Current CPP for the make-good flight has moved to €410, so GRPs owed = €18,240 / €410 = 44.5, rounded up to 45 GRPs. Read it as: the seller schedules 45 GRPs of free inventory in the next flight, which at today's rate replaces the €18,240 the advertiser was short, not the raw 48-GRP gap.

Where it goes wrong

• Valuing the shortfall at the current CPP instead of the contracted CPP inflates the owed amount and gets disputed; use contracted CPP to get the currency value, current CPP only to convert that value into future GRPs
• Subtracting delivered GRPs from the tolerance floor instead of from the full guarantee understates what's owed; tolerance only decides whether make-good triggers, not how much is owed once it does
• Comparing GRPs across mismatched audience definitions, such as an IO written on target audience against an audit reported on housewives, produces a false shortfall; reconcile both to the same demo before subtracting
• Rounding the final make-good GRPs down forgives value owed to the advertiser; round up

How to know it is right

Terms used

• Make-Good
• GRP Delivery
• CPP

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