- Two ad-production trade groups — Association of Independent Commercial Producers and the Association of Independent Creative Editors — issued letters to candy maker Mars' CMO about its recent decision to switch to a 120-day payment cycle.
- According to the letters, the longer payment cycle could financially ruin agencies and production companies hired to produce Mars' ads.
- Dollars typically run from marketers to agencies and then to production companies, but production employees' union rules require that each member be paid within a certain time frame — meaning the agencies and production companies have to come up with cash regardless.
The longer pay cycle does seem absur when viewed as AICE Executive Director Rachelle Madden put it in an email to AdAge, writing that it "ultimately boils down to a large multi-billion dollar corporation leaning on independent small businesses for interest-free loans and that's just absurd." Other than putting off payment, it doesn't seem clear why companies like Mars are extending payment cycles.