With the tech-savvy world we live in today, media agencies are facing increasing pressure to adapt and keep up with their trendsetting clients. Yet, in a recently commissioned study conducted by Forrester Consulting, it was found that media buying agencies are still making nearly ⅓ of their payments by check.
It’s true, there are some suppliers out there that only accept checks despite digital transformation across the industry, but for all the others, why do we remain in the dark ages? Especially when agency AP professionals report challenges such as these:
- 52% experienced late payments
- 51% encountered manual errors
- 40% lost checks in the mail
- 30% paid additional processing and material costs
Not only does this prove to be costly and time-consuming, but it also has the opportunity to damage a company’s reputation with both brands and media suppliers. With wide-reaching effects, it’s more important than ever for agencies to update their payment processes and embrace the world of digital payments.
Reduction in errors, improved process efficiency, cost savings and cost reduction – these are just some of the many benefits AP leaders have reported after making the transition to an electronic payments solution.
“Agencies have a unique opportunity to optimize their AP department and reinvent the ad purchasing process, it’s just a matter of time before we see this shift happen everywhere,” said Michael Wehner, General Manager and Senior Vice President of Payments.
Ready for your AP department to catch up with the times? Download the Forrester study: “It’s Time for Media Agencies to Digitize the last Mile of Payments.”