- There is obvious concern that the ANA believes this practice is so big among the majority of agencies
- We Caution all who read this report not to jump to conclusions as not all of the data from the study was transparent
...But I have yet to see anyone claim, with any degree of substance or credibility, that the K2 Intelligence findings are in any way not accurate or real. The following, all of which are reproduced here verbatim from the K2 report, identify practices taking place throughout the industry today:
K2 identified evidence of several methods by which rebate deals are structured, including financial incentives in the form of cash or free media.
K2 found evidence of non-transparent business practices in the U.S. market arising from agencies holding equity stakes in media suppliers.
K2 found substantial evidence that the lack of transparency inherent in principal transactions enables agencies to engage in potentially problematic conduct – i.e., conduct that may not be in the advertiser's best interest.
For the full article go to Ad Age or click on the following links. | |