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:
Advertising industry at an inflection point
We’re starting to see the rise of new types of scale. Agencies need to focus less on buying clout and more on data, talent and ideas.