New York—A new study by the Association of National Advertisers revealed that 43% of marketers are stretching out terms to vendors for such marketing service items as agency fees, research, media and talent payments.
According to ANA's “Payment Terms—Current Practices for Marketing Services” report, corporate finance and procurement departments have been the principal drivers behind extending payment terms, seeking to improve corporate cash flow. However, ANA warned that such practices can harm vendor relationships and management processes, result in higher vendor prices and jeopardize the existence of smaller agencies.
Agency fees were the payment item most commonly stretched out, with research and digital media expense terms also often extended. The ANA study was based on an online survey conducted in April and May, with 98 client-side marketers responding.