Op-Ed: Advertisers Are Overmatched in Agency Contract Negotiations
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A key finding in the work the Association of National Advertisers, or ANA, has been doing on the media transparency issue over the past two years is that the contracts between marketers and their media agencies are at the very heart of the controversy.
And when it comes to those contracts, marketers are at a distinct disadvantage and are significantly overmatched in negotiations with their agencies. Here’s why.
The huge holding companies like WPP, Omnicom, Publics, IPG and Havas all have teams of contract specialists whose jobs are to help the agencies get the most favorable contractual terms. These teams consist of lawyers who collectively have visibility into hundreds and perhaps thousands of advertiser/agency agreements. (Read that last sentence again, please).
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