Big ad firms defend their payment collections practices
After a standard analysis by CT and S&P Capital IQ of advertising agencies' DSO revealed substantial delay of payments, Asia-based finance executives of the world’s largest ad firms have fought back claiming standard industry billing practices are mitigating factors in collections.
CT and our sister magazine Campaign ran the numbers on some of the world’s biggest ad agencies last week to find their DSOs. The stories elicited strong reactions in the Ad industry with one executive claiming their DSO are simply not that long.
The story was triggered after ad industry representatives in London complained of extended payment terms from their clients. After we ran standard DSO analyses on publicly traded advertising firms, some of the world’s largest appeared to have DSOs stretching beyond 200 days. Publicis posted consecutive years over 360 days.
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