ANA Study Finds Two-Thirds Of Marketers Have Updated Their Media Agency Contracts In Response To Kickbacks

More than two-thirds of advertisers (69%) have updated their media agency contracts within the past three years in response to concerns about transparency and alleged rebates in the media-buying, according to findings of the Association of National Advertisers’ just-released “Media Agency Compensation Practices” report.

The report, which is based on findings of a survey of ANA members fielded in April by JLB + Partners, also found that a third of marketers have made updates to their media agency compensation methods in the past year alone.

Slightly less than a third (31%) said they have either made no changes or were not sure.

The study, which is a follow up to the ANA’s and consultant K2 Intelligence’s 2016 “An Independent Study of Media Transparency in the U.S. Advertising Industry,” suggests most big marketers have responded, but that there still is significant room for improvement.

The new report reveals that 60% of marketers believe rebates, discounts and various forms of media kickbacks are not deemed part of a media agency’s compensation and that the marketers should receive their “fair share” of such rebates awarded to an agency by the media for making their ad buys.

“Marketers are clearly starting to look more broadly at the compensation of their media agencies – not just the fee or commission revenue, but the total of all agency costs and revenues, whether programmatic and other media technology charges or revenues earned through rebates and discounts,” JLB + Partners President-CEO David Beals said in a statement as part of the release of the report.

Only 3% of the respondents said they were okay with their agencies receiving kickbacks from the media as part of their compensation.

read more/source: https://www.mediapost.com/publications/article/340724/ana-study-finds-two-thirds-of-marketers-have-updat.html

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