Marketers still have ‘their heads in the sand’ around agency rebates


Despite the Association of National Advertisers (ANA) claiming agencies are aware and regularly mandate controversial practices including cash rebates, David Wheldon, CMO of the RBS Group, says “too many marketers” still have their “heads in the sand”.

It is a “surprise” the practice of agency rebates isn’t a bigger issue, according to David Wheldon, CMO of the RBS Group.

Over recent months, the ANA has claimed senior executives at ad agencies are aware and regularly mandate controversial practices that are often not disclosed to clients. These include cash rebates, rebates as inventory credits and ‘service agreements’ for non-media services such as consulting or research.

In April, meanwhile, ISBA announced a new contract designed to create more transparency for advertisers when negotiating with media agencies. At the time, Debbie Morrison, ISBA’s director of consultancy and best practice, said: “Certain agency groups only use certain auditors and it all looks very fishy.”

Speaking to Marketing Week, Wheldon said he couldn’t understand why so many marketers were choosing to ignore the advice of both ISBA and the ANA.

“My view is the best relationships are built on trust, and that trust depends on openness. “Clients need to know what agencies are charging them for [becuase] if they take [rebates] without telling clients it won’t build trust,” he said.

Bron en volledig artikel: Marketingweek