Media rebate conundrum

Media rebates, where media companies provide rebates and incentives to agencies for referring or influencing client spending towards that media company, are on the increase in the US.

Media rebate conundrum

Thom Forbes

The industry practice of media companies providing rebates and incentives to agencies or their holding companies for referring or influencing client spending towards that media company, and then agencies failing to reimburse those funds to the client, has long been a tolerated practice overseas. However, a recent ANA survey, conducted in partnership with the organization's outside legal counsel Reed Smith, confirms that this practice isn't limited to faraway places like China and Brazil — it is also becoming commonplace right here at home in the U.S.

A white paper issued with the full survey results...

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