Page 14 - Internationalist Magazine 2013 66

v

FRONTLINES

ANA Study Reveals New Trends in

Payment Terms for Marketing Services

Issues of remuneration and payment terms are always important to marketers

and suppliers. As we approach year end, a timely report from the ANA/

Association of National Advertisers outlines key factors that are affecting the

payment of services for agency fees, research, media, production, and talent

payments. In fact, 43 percent of marketers have extended payment terms this year

on at least one marketing service in their portfolio. Historically, payment terms

for most advertising/marketing services have been between 40 and 45 Days.

The indings come from an online survey conducted by the ANA during August

and September 2013. The survey was initiated due to member interest resulting

from reports in the advertising/marketing trade press and mainstream business

press regarding changes in payment terms being implemented by a handful of

companies to some suppliers. The purpose of this survey was to determine if such

changes were isolated examples or relective of a broader trend.

ANA indings suggest that client-side marketers could be threatened. This includes smaller agen-

who are considering changes in their payment cies, production companies, editorial houses, and

terms for marketing services — particularly ex- media outlets that require a predictable cash low,

tended terms — should proceed with caution, and often don’t have access to large lines of credit,

are encouraged to evaluate the downstream impli- and have pricing models that do not currently

cations of such payment term extensions. There relect the costs to their business resulting from

can be serious tradeoffs resulting from payment extended terms.

term extensions that can have both immediate

and longer-term negative consequences. Noted in
“It is becoming very clear that payment terms are
the survey are strained relationships with vendors,
becoming increasingly important to the overall
reduction in lexibility, and higher prices.
marketer / supplier relationship. Such consider-

ations must now be integrated into the total com-

Furthermore, the livelihoods of some of the pensation equation,” said Bob Liodice, President

smaller players in the marketing supply chain
and CEO of the ANA. “While the ANA does not

12 the internationalist