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Bill Duggan from ANA: Advertisers must re-examine their contracts with media agencies

Manuela Walfenzao| 5 de octubre de 2016

Bill Duggan, VP ejecutivo de ANA

Bill Duggan, Group EVP at Association of National Advertisers (ANA) said in ANA’s official blog, that studies conducted by them in the last two years about the industry transparency, show that contracts between advertisers and media agencies are at the very heart of the controversy. “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” Duggan explained. “Advertisers, on the other hand, most often have an in-house lawyer or two who are responsible of many areas. It seems clear that if expertise and knowledge represent power and leverage in contract negotiations, the agencies clearly hold the edge.” To address this issue, the ANA and Ebiquity/FirmDecisions crafted a follow-up report entitled Media Transparency: Prescriptions, Principles, and Processes for Advertisers that included a focus on the media agency/advertiser contract. Duggan recommended that advertisers immediately and consistently re-examine all existing media agency contracts and meticulously review all terms and conditions. Many contracts contain opt-in agreements that limit their rights such as their capacity to audit. The ANA and Reed Smith LLP developed a media agency Master Media Planning & Buying Services Agreement. Also they are offering a contract workshop for advertiser/agency agreements on October 4th in New York and November 16th in Chicago.

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