The Communications Council condemns the use of COVID-19 as excuse for clients to extend payment terms
Advertising body The Communications Council has condemned the rising trend of clients extending payment terms for agency services during the COVID-19 pandemic.
The move endorses global agency association VoxComm which made an announcement last week calling upon clients to ‘seek agreement on payment terms that support a positive and mutually beneficial relationship’, after labelling the delay in payments a ‘pernicious habit’.
The Communications Council has spoken out against clients delaying payments
CEO of The Communications Council, Tony Hale, said this behaviour was unacceptable and an ‘egregious betrayal of trust’.
I’ve chosen an alias that says it all really.
Call me reactionary, but only if these mysterious ‘clients’ are named, will anything be done, likewise truly show the courage of conviction of VoxComm and/or The Communications Council.
At the moment, this is just a case of the boy crying wolf…
Tony Hale, said this behaviour was unacceptable and an ‘egregious betrayal of trust’.
Pull the other one, Tony.
Advertisers and agencies have been vigorously stiffing each other for years now. One side via rebates and production mark-ups, the other via predatory pitching practices and payment terms. This is just another step in the race to the bottom. There is no trust.
“No client should ever expect its ad agency to bankroll its business.”
Can we extend this to “no ad agency should ever expect it’s design studio partners to bankroll its business”? Because this has been happening for some time now. Ad agencies, especially those under huge conglomerates like WPP, have been pushing for payment terms from increase from 30 days to 60 to 90 and some are asking 120.
Not only is Covid not an excuse for extended payment terms, but the Comms Council, AGDA and other orgs should be helping to fighting any payment term over 30 days, and in ways stronger than simply “a policy”. Name and shame all agencies demanding terms over 30 days so we as an industry can be informed and work with smarter clients.
Pretty much every client so far has asked for a significant retainer reduction, or simply free work for 1-3 months as a result of this. Even in sectors that are not directly impacted by the situation. Sure, travel, entertainment, go ahead lets work something out. FMCG, Online retail, gaming and others are all doing fine while still asking for handouts or late paying. Disgusting practice, we’re supposed to be partners.