74 Marketing Trends found for Regulation / USA

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US Advertisers Investigate Agency 'Rebate' Allegations

Trend Summary: US Marketing trade body probes allegations that ad agencies are pocketing media rebates intended for their clients.

The US Association of National Advertisers [ANA hereon] has retained two companies - K2 Intelligence and Ebiquity/FirmDecisions - to investigate allegations that some advertising agencies are pocketing cash rebates from media owners intended for clients of those agencies. According to the ANA, the probe is designed to “demystify” the ad-buying landscape and provide its members with perspective on ...

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... “non-transparent behaviour”.

Such behaviour includes rebates, barter arrangements, arbitrage and other agency practices and processes.

Marketers are also concerned that some agencies have covert agreements with media owners which reward agencies for spending more of their clients' money.

Specifically: If the agency chooses to direct more of its clients’ budgets to certain media, those agencies may receive, in return, cheaper ad rates, free ad space or even, on occasion, cash.

Summarises Jon MoellerProcter & Gamble's Chief Financial Officer: “We are strengthening marketing - greater reach, higher frequency, greater effectiveness, at less overall cost”.

Read the original unabridged WSJ.com article.

[Estimated timeframe:Q4 2015 onward]

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: WSJ.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=6735

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