MAA criticises Premier Foods for 'demanding upfront fees'

Scott Knox: managing director of the Marketing Agencies Association
Scott Knox: managing director of the Marketing Agencies Association

The Marketing Agencies Association has hit out at advertisers demanding that agencies pay an upfront fee to be included on their rosters.

In particular, the organisation has singled out Premier Foods, which, it claims has demanded £40,000 from one medium-sized agency just to gain a place. It is believed that the amounts requested from agencies are based on an estimated income model.

Scott Knox, the managing director of the MAA, said: "As if it’s not enough for big client corporations to expect marketing agencies to act as a bank and bankroll client campaign activity, they are now rubbing salt in the wound. 

"Agencies are already making so little margin that by asking for a huge lump sum up front, just to get chance to do some work, is unacceptable.

"Agencies really need to stand together on this and with the help of organisations like the MAA and ISBA, challenge the client community on these changes that are detrimental to the industry".

The complaint follows a recent furore over advertisers, including major multinationals such as Mondelez, AB Inbev, Procter & Gamble and Johnson & Johnson, demanding extended payment terms.

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