FirmDecisions warns two thirds of advertisers are not getting their share of ‘value banks’
Brocklehurst: “There are media credits being held in the millions of dollars”
A review of more 300 global clients has shown two out of three advertisers surveyed did not have contracts in place to get their full entitlement of media rebates, often referred to as ‘value banks’.
While the FirmDecisions review of 300 advertisers focused on contracts across Western Europe, the USA and the Middle East the company’s Australian managing director David Brocklehurst told Mumbrella he expected the results to be mirrored here among major global brands.
“We would expect it to be echoed in what we are seeing in Asia-Pacific, particularly with the lack of transparency in the financial records,” said Brocklehurst.
No surprises here…..
Oh dear, you don’t need FBI agents to work out that high double digit growth in Facebook adspend (and in years past, triple digital growth in Google adspend) is directly correlated with double digit growth in agency rebates. Local publishers can’t compete. A correction is imminent.
Its interesting that apart from GroupM,
“Dentsu Aegis, IPG Mediabrands, Omnicom and Publicis Media have all refused to publicly comment on whether they have value banks and what their policies are in this area”
hmm
I wonder what happens to all of the ‘value’ earned by an advertiser when they leave an agency with a value bank?
I can’t imagine that Mediacom would have packaged up the many millions earned by a big account like the State Government of NSW and forwarded it on to the client’s new agency can you?