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Posts tagged with A B

Agency IOUs: Big brands wimp out on payments

wimpyI will gladly pay you Tuesday for an advertisement today.  Well, make that four months from Tuesday. That's no problem, is it?

As the Feds bail out the banks, the advertisers have apparently decided their agencies are banks. At least, that's how they're treating them when it comes to payment terms. Both the Wall Street Journal and Ad Age are taking a long, hard look at the story today.

It seems many agencies are willing to go along with advertising on the installment plan, forced on agencies by enormo brands such as GM and Anheuser-Busch.  Reportedly, GM, whose brand portfolio includes Cadillac, Buick and Pontiac, has offered to pay ad production firms half a TV spot's production costs 60 days after the first day of shooting, and the remaining half when the ad is finished.

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