The Advertising and Media Industry is losing nearly $6.6 Billion in revenue each year

Advertising and Media companies could be seeing more of their projected revenue. The business of collecting advertising revenue was always fairly straightforward. You buy space; whether it's TV, web, print or mobile. An account is set up with a credit card or, for some larger entities, terms are negotiated. Many online advertising services are emerging like Google, who promote and distribute ads and charge a fee for clicks and these are the companies who are the most exposed. Total U.S. Ad spending in 2013 was $171.7* billion - the adjacent creative and marketing industry, another $12 Billion**. The combined industries are losing nearly $6.6 Billion**** in revenue each year because of ineffective revenue management and the dissatisfaction or misunderstanding between media servicers and the customer.

Often times the product or service simply doesn't sell. An advertiser or marketer is not responsible for the success of a campaign and they don't want to be on the hook for the bill. So many media companies are now demanding payment in full up front due to this major factor. It's a conservative approach by media companies to protect revenue. However some advertiser and marketers will share the risk with a company. This consideration costs the industry approximately $6.6 billion of revenue each year in unpaid invoices.

Google: The World's Top Advertising Network

Google AdWords, which is a Pay-Per-Click advertising service, is quickly becoming the standard of today's online promotion. You simply enter a valid credit card, set a budget, and run expenses on your account regardless of how much money you have on your bank card. Google has grown their Ad Program which makes up 92% of their income. In 2013, their Accounts Receivable was $1.3 billion, which is 8% of net revenue. Google's policy to extend usage of their network to customers proves positive for many business owners. How can companies like Google reduce exposure?

Follow-up and education is a trend that is occurring in the advertising and media industry. Google provides examples and tutorials in Ad Words on how to maximize their network. Many media companies are outsourcing to customer service and call centers, or developing in-house follow-up policies that educate customers on the expectations when using media channels to promote their business. Traditionally when an invoice is not paid, media companies will use Collection Agencies -including Google. Unexperienced debt collection companies can damage both the media service and customer reputation.

There are new companies offering specialized back office support for Online Advertising, PR, Media, Marketing and Creative Services. Brent Anderson, Senior Vice President at Account Assistants™ provided some insights and statistics. (Account Assistants. Anderson showed recovery reports with an average of 77% of lost advertising revenue that had been resolved by communicating the terms of the agreements. Account Assistants rearticulates the value of the media service to customers. Their staff educates and resells customers on the importance of marketing and promotion while resolving the debt. "There should be a cordial and educational call immediately after the account is suspended for non-payment to secure lost revenue", says Anderson. "Account Executives and Account Receivable managers typically don't call their customers when there is a concern." Anderson believes the main reason for revenue losses in the industry is too much automation. Non-paid accounts are closed without attention and a bill is forwarded to inexperienced collection agencies. contributed to this article. is a Social Network and Directory of Accounts Receivable professionals.

2014-04-10The Advertising and Media Industry is losing nearly $6.6 Billion in revenue each year


About Account Assistants

Account Assistants is a division of Support Collectors Inc., a Minnesota Corporation and national Accounts Receivable Firm managing over $50 million in revenue annually since 1996. Account Assistants has serviced some of the nations largest Advertising and Media companies for 10 years, employs 20 Revenue and Account Assistants with a "zero complaint" culture.