Working Capital Support

Working capital is the most common type of invoicing method. 

Tatari acts as the middleman for your authorized media buys with networks. Every dollar you pay Tatari goes out to pay the networks. As such, we are not in a position to take on risk for your authorized media buys.

Our working capital invoicing method is best understood similarly to a retainer: it works to support your ongoing media buying needs. With a working capital in place, we will send you invoices on a weekly basis upon clearance for the previous week’s airing. When we receive your payment for that invoice, it replenishes the working capital support that is already buying future weeks.

Your marketing team’s weekly budget plus your payable schedule will determine the appropriate level of working capital support. At any time you decide to increase your weekly spend, we will need additional working capital support. And vice versa, if you decide to lower or pause, we can refund you what’s not being used.

Invoicing 

You will receive a weekly invoice that includes the following (as applicable):

• Linear clearance for previous airing week;
• Streaming commitment for the previous airing week; and
• Tatari fees

Your invoice should match what you’re seeing on your Tatari dashboard under “Spend” for linear TV and ~2 weeks after the calendar month ends and is reconciled on streaming TV. 

As streaming publishers do not provide weekly impressions, your dashboard impressions are ingested on a next-day basis by Extreme Reach, a 3rd party vendor. As such, your weekly invoice will not always match the dashboard as we are invoicing you for your committed weekly buys versus ER impressions x CPM. Approximately 2 weeks after the calendar month ends, we will receive final impressions from publishers to reconcile your dashboard as well as any spend that was previously invoiced.

Please note you may also receive monthly media adjustment invoices. Networks do not consider the weekly logs to be final and hence this may happen. Based on historical records, monthly media invoice adjustments typically range from 2-5% depending on your spend level.

Opportunistic Buys 

In a normal market environment, we occasionally receive fire sale deals, or rate cuts to inventory from the network to air your ad, which can sometimes be as high as a 90% discount. 

In the recent weeks, and particularly during the COVID-19 pandemic, we’re seeing an increase in fire sale deals which are exciting opportunities for you to get your ad inexpensive on prime networks and shows, like American Idol. However, these sales don’t last long and it’s important to secure them immediately.

In order for us to submit a request for a fire sale deal, and thus increase the chances of securing it, we need to secure payment upfront. 

Let’s say your working capital is based on a weekly budget of $50K, and you want to spend $10K on a fire sale deal, you can either: (1) pay upfront quickly to secure the deal; or (2) reduce your next week’s spend to $40K. As such, in order to maintain the $50K a week for your normal media plan, we recommend you add additional working capital during this time. 

Please work with your finance team to determine the appropriate working capital level to accommodate your TV strategy. You can also pay by credit card which is another quick method to secure a fire sale deal. 

Your Tatari client service manager and media buyer can provide you more details on how to best incorporate fire sale opportunities in your weekly budget.

Updated 4/8/2020