MAA calls clients 'unfair and greedy' over payment terms
By Ian Darby, campaignlive.co.uk, Thursday, 19 April 2012 11:25AM
Clients are "unfair and greedy" in their approach to paying agencies, according to the Marketing Agencies Association.
The MAA attacked clients for moving payment terms to their agencies from a standard 30 days to up to 120 or 150 days after project completion.
The association said that this, combined with an escalation of project-based work, places increased pressures on agencies.
It called on its members to charge clients for late payment and hopes this will encourage clients to revert to paying agencies in 30 days.
The MAA's move follows research issued in January that showed that the average fee for its member agencies declined by 18.4 per cent in the decade to 2011.
MAA figures show that 72 per cent of its member agency income is from project-based work, a slight increase year on year as clients look for tighter financial controls and fewer retained agency relationships.
The trade body is chaired by the Iris founder Ian Millner and represents 80 digital, direct and integrated agencies.
Scott Knox, the managing director of the MAA, said: "We are hearing from agencies dismayed at payment terms, which have crept up from 30 days to 90, then to 110, 120 or even 150. This is nothing short of unfair and greedy."
The MAA said that clients "hide behind" policy and international directives to avoid prompt payment.
This article was first published on campaignlive.co.uk
- Senior copywriter story uk limited Negotiable depending on experience, Edinburgh
- Senior Marketing Manager Cutis Developments £50,000 - £60,000 per annum , Victoria, London (Greater)
- Insight Manager FMCG Connect £30,000 - £35,000 plus benefits, Manchester, Greater Manchester
- ABM Interim Ball & Hoolahan £34,000 per annum, South East England
- What the end of Page 3 means for advertising
- Notonthehighstreet sponsors London Underground 'baby on board' badge
- Havas partners with Facebook's Atlas for multi-device ad targeting
- Has JCDecaux chosen the wrong time to abandon its trade body?
- Mother backs new integrated agency The Romans
- The Sun cuts topless models on Page 3