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Tom Denford Demonstrates How Greater Clarity on Rebates Is Key to Trust Between Brands and Media Agencies

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The survey is based on responses from 140 advertisers and senior executives at agencies. This includes marketers from brands representing a total, annual global advertising spend of approximately USD $20 billion, while agency respondents came from all six major holding companies, as well as key independent media agencies in the U.S., U.K. and Germany. According to Tom Denford, the goal of the study was to show how transparency in its broadest sense, as a business principle, can deliver benefits for both advertisers and their agencies.

Transparency in planning and data are overshadowed by advertisers' concerns about agency business models. Yet, an advertiser that has a strong relationship with their agency, including a transparent and fair payment model, best-practice contractual language that protects their interests, and a clear view of how their budgets are traded by the agency is most likely to build a trusting partnership for the benefit of both parties. This also often results in longer tenure for the agency and an increased willingness to reward them when they deliver business value."

Interestingly, the Transparency Survey showed that U.S. clients were slightly more positive about current levels of media agency trust as 61 percent described trust levels as "average," 26 percent as "low," and 13 percent as "high." By contrast, European marketers were quite negative with 14 percent describing trust levels as "very low," and 22 percent as "low."

(Please download the full PDF of this article at the link to the right.)

Source

"Tom Denford Demonstrates How Greater Clarity on Rebates Is Key to Trust Between Brands and Media Agencies." The Internationalist. Number 79, 2016.

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