Ad Agencies Getting Rebates From Media Companies for Advertising

anaDow Jones Business News reports that an 8 month probe by the Association of National Advertisers found that ad agencies are getting rebates from radio, TV and outdoor companies for spending a certain amount of money on behalf of their radio, TV and outdoor clients.  Rebates are a common practice in Europe, China and Brazil but haven’t historically been part of ad deals in the US.

The ANA study, which was based on interviews with 150 people in the ad business will be released shortly.

Insider’s take: This story is worth watching.  Undisclosed ad agency rebates are a shady practice and should be stopped.  The practice smacks of accepting a kickback.


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