Contractual language should affirm media rebates belong to the advertiser
A new study by ANA (Association of National Advertisers) and Reed Smith reveals that nearly one-third of U.S. marketers are aware of rebates / incentive payments from media companies to agencies that may not be reimbursed to the advertiser.
Through its new white paper Media Rebates / Incentives Require Full Transparency, ANA seeks to help marketers better understand this type of incentive. In support of the white paper, the ANA surveyed nearly 200 client-side marketers to fully explore this topic. The white paper calls for agencies to be transparent about these rebates, and for marketers’ agency contracts to clearly outline the proper handling and return of rebate assets.
According to the ANA / Reed Smith white paper, best practices for advertisers regarding rebates / incentives paid by media companies to agencies include:
• Agree that the entire benefit of media rebates / incentives belongs to the marketer and that agencies will be completely transparent regarding any rebates / incentives received.
• Use clear language in agency contracts specifying how rebates will be handled. Contracts should exist at both the agency and holding company level to address “global” advertising arrangements and ensure the fair allocation of rebates / incentives.
• Consider conducting periodic audits to ensure that unauthorized incentives / rebate activity is not occurring.
“It is imperative that advertisers become more aware of these incentives and take ownership of all assets recouped on their business,” said Bill Duggan, ANA Group Executive Vice President. “The only way to make this a reality is for advertisers and agencies to maintain clear, contractual transparency about rebate and incentive activity.”
“Addressing this issue is long overdue and should be on the radar of every ad agency and advertiser to insure that money flow is accurately reported and, more importantly, understood by the entire marketing ecosystem,” said Douglas Wood, Partner and Co-Chair of Reed Smith’s Media & Entertainment Industry Group.
The study found that 85 percent of those surveyed believe agencies should remit all rebate dollars to clients, and that 63 percent of respondents believe that agencies who accept rebate dollars from U.S. media cannot be objective with their media allocation recommendations. Only 35 percent indicated that they have clear, specific language in their contract that outlines the incentives and rebates that should be returned to them.
Detailed study findings, as well as suggested contract language regarding rebate ownership and agency auditing, are also included in the white paper. The study was conducted from May to mid-June 2012, with 188 client-side marketers responding to the survey.
About the ANA
Founded in 1910, the ANA (Association of National Advertisers) leads the marketing community by providing its members with insights, collaboration, and advocacy. ANA’s membership includes 450 companies with 10,000 brands that collectively spend over $250 billion in marketing communications and advertising. The ANA strives to communicate marketing best practices, lead industry initiatives, influence industry practices, manage industry affairs, and advance, promote, and protect all advertisers and marketers. For more information, visit www.ana.net.
About Reed Smith
Reed Smith is a global law firm with nearly 1,700 lawyers in 23 offices throughout the United States, Europe, Asia and the Middle East, and has represented the advertising, marketing, promotion, and entertainment industries for more than 50 years. The firm’s worldwide presence, together with its membership in the Global Advertising Lawyers Alliance, provides access to an extensive network of counsel throughout the world, allowing clients to obtain the advice they need in locales where they need it. Practice areas include truth-in-advertising, e-commerce, intellectual property, celebrity endorsements, collective bargaining agreements with performing unions, film and television production, distribution and financing, sweepstakes, contests, promotions, event management, sponsorships, ambush marketing, product placement and integration, licensing, labeling, packaging, defamation, invasion of privacy, viral marketing, contracts, mergers and acquisitions and joint ventures. For more information, visit www.reedsmith.com.
Luna Newton CooperKatz & Co. for the ANA lnewton@cooperkatz.com 917-595-3061
Contact:Jamie Moss newsPRos for Reed Smith jamie@newspros.com 201-493-1027
“Ǝvolution” Comes Full Circle At The Chelsea Film Festival
The Chelsea Film Festival, running from October 16th through October 20th, 2024, at Regal Cinemas here in Union Square, is set to host the East Coast premiere of Ǝvolution, a thought-provoking experimental micro-short film that proves big ideas can come in small packages and in perfect circles.
In just 1 minute 16 seconds, this cinematic gem by Award-Winning Director Romina Schwedler, with original music by Argentine Composer Ignacio Montoya Carlotto, explores a cycle as old as time: life leads to progress, progress leads to destruction, and destruction, well, leads back to life. But is this vicious circle unbreakable? Ǝvolution suggests the answer is yes, unless we decide to open our eyes.
Inspired by the overwhelming number of recent events that threaten human existence, Ǝvolution, possibly the shortest film in this 12th edition of the festival, plays out entirely through the symbolism of circles, cleverly illustrating —in the blink of an eye— the repeating patterns of history, and confronting viewers with the uncomfortable truth that our so-called “progress” may, in fact, be guiding us to our own ruin.Premiering at the Regal 14 Union Square, New York City, on October 18, 2024, at 11 a.m., Romina Schwedler's micro-short, featuring Leah Young with cinematography by Alan J. Carmona, will be sure to spark conversations longer than the film itself! Forcing viewers to reconsider the true meaning of evolution, not just as a biological process, but as a reflection of our collective journey as humans.
With a string of festival appearances across the globe, including CineGlobe at CERN (Switzerland/France), Oscar®... Read More