Page 16 - Internationalist Magazine 2013 66

FRONTLINES

recommend any speciic term or practice, we do ad- advertising and media space. Forty percent are

vocate better collaboration that advances the quality of evaluating changes to just a segment of

the marketer / supplier relationship and the products their supplier base.

and services delivered.”

The two primary drivers of payment term changes are:

Key study highlights include:
• The Finance department and / or CFO

• 17 percent of marketers have shortened terms on at
(86 percent)

least one marketing service
• Procurement and purchasing (52 percent).

• Across the multitude of marketing services in their

companies, 90 percent of marketers have left at least
Just under one-third of respondents claim that, as a

some payment terms unchanged
supplier/vendor, they have seen their company’s pay-

• Looking to 2014, 42 percent of respondents said they
ment terms extended.

were somewhat or very likely to change

payment terms.
More Than 40 Percent Likely to Change

Payment Terms Within the Next Year

The majority of respondents who have extended their Forty-two percent of respondents say they are

payment terms have done so in order to derive better “very/somewhat” likely to change their payment terms

cash low. Next in importance is upper management’s for advertising/marketing services within the next

focus on accounts payable, which is tied directly to year, including 29 percent who are “very likely.” Those

cash low.
respondents who are likely to change their payment

terms cite three primary reasons for doing so:

Extended payment terms can have negative conse-

quences, notably:
• Improving cash low

• Strained vendor relationships (57 percent)
• CFO/internal management pressure

• Higher prices (25 percent)
• External forces/keeping up with competitors

• Strained management processes (23 percent)

The WFA (World Federation of Advertisers), a partner

Among those companies that instituted payment organization to the ANA, recently published their

terms changes, about 60 percent did so for company own survey results on payment terms. Respondents

suppliers across the board – and not just those in the
were multinational marketers with responsibility for

marketing investment from 61 companies in the WFA

membership. Key indings were directionally

consistent with ANA research.
42%
of respondents are likely to

change their payment terms
• More than half (56 percent) of the respondents are
for advertising/marketing
services within the next year
currently reviewing payment terms.

• For those respondents who are reviewing payment

term policies, around 40 percent may extend them.

14 the internationalist