How to Record a Make-Good for Failed Demographic Targeting
Adjusting revenue when a third-party audit (e.g., Nielsen or Comscore) proves that a campaign failed to reach the contractually guaranteed demographic (e.g., HHI over $100k).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Advertising Revenue | Revenue (-) | 8,000.00 | - |
| Contract Liability - Make-Good Credits | Liability (+) | - | 8,000.00 |
💡 Accountant's Note
Premium ad buys often guarantee an 'In-Target' percentage. If an advertiser pays a premium to reach 'Moms 25-54' and a post-campaign audit shows only 70% of the audience met that criteria (vs. a 90% guarantee), the AdTech firm must refund or provide 'make-good' impressions. The revenue associated with the 'failed' 20% is removed from the P&L and moved to a liability until the corrected impressions are served.
Practitioner & Systems Framework
💻 ERP Architecture
Requires a 'True-up' after the 3rd party audience report is finalized (usually 30 days post-campaign). The 'In-Target' CPM must be recalculated to determine the exact revenue deferral.
⚠️ Audit Flags
Consistent Demo Failure. If a platform regularly misses its targeting guarantees, auditors may require a general 'Revenue Reserve' to be established at the start of all guaranteed campaigns.
📄 Required Documentation
Nielsen/Comscore Audience Verification Report, original Insertion Order (IO) with demographic guarantees, and the make-good calculation workpaper.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.
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