Cenp is fully aware that this is a fundamental issue for the development of this industry and affects different agents in the advertising ecosystem
The payment terms used in advertising require redoubled financial efforts to maintain healthy cash flow. Breathe. Deadlines of 30 to 45 days, which more appropriately reflected the pace of the campaigns, became 60, 90, 120 and 180, counting from the approval of the project. But schedules can extend, further aggravating the situation for suppliers, who end up losing control over possible work developments.
“Currently, we have 30 and 60 days as practice for most clients, with some cases of 90 and even 120. These have been rarer and, fortunately, there is a movement among many advertisers to review this period. ”, says Oscar Moraes, co-CEO, COO and partner at BFerraz, a company in the B&Partners network.
Market sources consulted by propmark, who preferred to keep their identity confidential, comment on the resistance to defining a maximum deadline, a situation that leaves agencies at the mercy of “some absurdities practiced, which reach 120 days”. Others were openly indignant. “For an agency to be a client’s cashier for half a year, it needs to be in great financial health,” says Fernando Figueiredo, CEO of Bullet.
Apro+Som is working on drafting a proposal for a bill, the objective of which is to guarantee that companies will be paid again within 30 days. “A legal action would stop this practice of very long deadlines”, points out Bia Ambrogi, president of the association. “We know that there are several advertisers who have payment terms of 120, 130, 160 days after the project is executed. This is unsustainable”, adds the CEO of Bullet, who works with payment conditions that vary, on average, 45 days. “But they never exceed 90”, warns Figueiredo.
The topic is also debated at Cenp – Advertising Market Self-Regulation Forum, which confirms the creation of a document to be launched in October. “Cenp is fully aware that this is a fundamental issue for the development of this industry and affects different agents in the advertising ecosystem. Given the urgency and its importance, the Forum is finalizing a document that will deal precisely with deadlines and other fronts that, together, summarize sustainable relationships between the protagonists of this market. The content – aligned with all industry players: advertising agencies, advertisers, media outlets and digital links – must be focused on recommendations and good practices to mitigate any disagreements on this topic”, informs the entity.
Read the full article in the issue of propmark from September 30, 2024
