Friday 16th August, 2013

4A's, the national trade association representing the advertising agency business in the US conducted a member survey on existing agency billing practices and client payment terms.

As there is confusion about which media and marketing services, if any, are impacted by marketer proposed changes to vendor terms, and the extent of those changes is unclear.

The association conducted the 4A's Agency Billing Practices and Client Payment Terms survey in order to foster more balanced and accurate industry discussion on vendor payment terms, and as a mechanism to provide robust information on actual marketplace conditions.

The survey findings document the relative consistency of agency billing practices and client payment timing.

The results from the current survey are consistent with the association's prior findings in 2010.

1. The predominant practice is for clients to pay agency invoices within 30 days
2. Weighted payment terms are in the range of 32–36 days
3. Agencies pre-bill clients that operate with slower payment terms
4. Production activity billing practices are diverse.

The summary finding from the last time the report was conducted found: "The predominant payment terms for media, production and agency commissions/fees is thirty 30 days."