A recent review of the usage of the framework media services contract by ISBA has identified £6.1bn worth of client media spend as having either already been renegotiated or that will be renegotiated in the near future with the framework contract used as guidance. The review also indicates that the terms are being adopted by some of the biggest advertisers.
The review shows that the framework contract is being used with network agencies, in fact the majority of clients interviewed who have already renegotiated their contracts are with agencies from the major networks.
The review also revealed that the framework contract is being adapted to create terms that are international in scope and not just relevant in the UK; in 50% of cases the framework contract had been used by those who had already renegotiated, to help create international terms.
Very few advertisers had used or are using the contract in its original format or in totality. The vast majority either used specific clauses to enhance their current terms or in-house legal counsel adapted the draft to their own needs. This is also true for those planning to use the terms in the future.
There was some push back from some agencies on the terms of the framework. The definition of rebates/AVBs was the most contentious clause with 70% of respondents claiming this had been challenged. However in half of the renegotiated contracts there were no compromises to clauses made.
Very few members cited reducing costs as their key objective in forthcoming renegotiations. The review showed overwhelmingly that members’ key objectives were centred on improving transparency, driving better value, formalising digital metrics and standards and ensuring contracts were fit for a digital future.
Every member who took part in the review agreed that ISBA was right to challenge the media agency world on transparency issues.
ISBA Director General Phil Smith commented on the findings saying ‘It’s very heartening to see how useful the Framework Media Services Contract has been to our members. I am also pleased at how positively their agencies have responded. We have enabled many collaborative and constructive discussion between our members and their agencies leading to better alignment in these relationships.’
At the ISBA Annual Conference in March this year ISBA made a commitment to work with all stakeholders on ensuring the framework media services contract was continually being improved and refined. ISBA are currently working with their members, partners including the IPA and consultants including PwC on version two of the framework. The aim is to make necessary improvements based on the feedback from the review as well as from agency partners and experts in the industry.
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Notes to editors
The Framework Media Services Contract was launched April 26 2016 to ISBA members.
ISBA worked closely with their members, expert lawyers and experienced media consultants to surface current key issues, some elements of which were starting to undermine the trust between clients and their media agencies.
The initiative was supported by five mainstream media consultants (MediaSense, Ebiquity, ID Comms, Firmdecisions, and Financial Progression).
In April 2017 the framework achieved international recognition, receiving a prestigious World Federation of Advertisers (WFA) President’s award for industry leadership.
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About ISBA – the Voice of British Advertisers
ISBA represents the leading UK advertisers. We champion the needs of marketers through advocacy. We influence necessary change, speaking with one voice to all stakeholders including agencies, regulators, platform owners and government. Our members include the UK’s biggest brands.
ISBA is the voice of the advertiser in the UK Advertising Association tripartite. They are the advertisers’ representative on CAP and BCAP the UK advertising code body. ISBA represents UK advertisers in the WFA and ISBA's Director General, Phil Smith sits on the Executive Committee and the National Associations Council.