Study suggests digital media payment terms could rise to 64 days on an average in 2021

New Ideas in MarketingEssential news for marketers, summarised by YouGov
June 18, 2020, 3:00 PM UTC

The trend had started becoming apparent even before the pandemic hit.

Invoice factoring company Oarex observed the average payment terms for invoices purchased between January and May this year rose to 59 days from 49 days in 2019 and 47 days in 2018. This piece states the payment terms in the digital media industry are “stretching longer”, while payments are getting delayed.

While media payments were around nine days overdue in 2020 so far, Oarex said if the same trajectory continues payment terms could rise to 64 days on average next year. FastPay similarly reported that remittances from agencies to ad tech vendors and publishers were 20 days slower after 15th March this year.

The delays are expected to affect agencies’ payrolls and freelancer remunerations negatively. This piece suggests companies should critically analyse their contracts to reduce their risk exposure.  

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