in spending this year — has led to strained relationships with some smaller agencies responsible for buying those ads during the coronavirus pandemic.
Multiple ad executives said Facebook and Google had been unwilling to change their payment policies in recent weeks to give smaller agencies more leeway. Mothner declined to name the other agencies involved but said they made two demands: sequential liability and greater payment flexibility, meaning the platforms would allow clients more time to pay in some cases.
According to Mothner, Wpromote got past the issue because most of its clients agreed to pay directly. But he also said many advertisers, especially big brands, prefer not to do that because it creates more paperwork and greater legal risk. Some have gone so far as to say that they would not work with Wpromote if they had to use direct payment, he said.
Spokespeople for the major holding companies, including WPP, Omnicom, Publicis, IPG, Dentsu, and Havas, either declined to comment for this story or did not respond to related queries. This could easily put a mid-sized agency out of business, Ashgar said. He also said that while Crossmedia had sequential liability with Facebook, Google had repeatedly told the agency it didn't offer sequential liability.
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