What is an Agency Volume Bonus? (AVB)
Commonly referred to as AVBs, this is simply another name for rebates. These deals typically take the form of cash incentives media owners offer to media agencies to encourage them to spend more with them. The value of AVBs, which vary by media and by spending level, typically range between 2.5% -8% of an advertiser’s net media spend. In digital media channels, the range band can be significantly higher. AVBs can come in many forms, for example:
- Early payment discount (EPD): A payment or discount for early payment of invoices
- Volume rebate: A discount triggered by hitting a specified spend level/tier
- Payment from the media supplier to the agency for research, training, or other services
- Bonus inventory or value pool where a media agency may be able to ‘sell’ to clients that don’t require an invoice
- Media buying for clients from trading desk within their holding company, which may have benefited from volume-based incentives from media suppliers.
