Global drinks giant Anheuer-Busch InBev, which owns brands including Budweiser, Corona, and Stella Artois, is set to review its global media business via a “reverse auction process”. The process, which sees agencies bid lower and lower to win the business, is controversial because ad industry executives fear it ignites a race to the bottom that devalues their work.

Christian Polman, Chief Strategy Officer at Ebiquity, shares his view on Campaign.

The question here is not whether agencies should push back on commercially challenging terms – that is a commercial decision that’s up to them – but rather what the consequences are for brands that impose such terms on their agency partners. 

Brands should be aware that key financial terms impact access to talent and thinking, and other key resources that change the quality of work, whether media or creative quality and value, with an ultimate impact on business results. 

Brands must consider these trade-offs when negotiating agency partner terms and ensure they receive sound strategic advice and guidance throughout complex pitch processes”.

To read the article in full on Campaign, please click here.

First featured on 11/12/2019.