Conversations that Build: Financial Challenges & Solutions in Marketing
Our recent panel brought together agency leaders, consultants, and procurement experts to discuss one of the industry’s most pressing issues: the financial challenges that shape creativity and collaboration. Through key questions, each speaker shared actionable insights — from the impact of extended payment terms and unpaid pitches, to negotiation strategies and the power of agency collaboration.
9/25/20253 min read
At Constellation Global Network, we believe that open conversations can transform the creative industry. In this panel, we explored the financial challenges that agencies face today — from payment terms to procurement practices — and highlighted collaborative solutions that can build a healthier ecosystem for all.
Answer by Aldo Quevedo, BeautifulBeast (USA)
"If clients demand immediate creativity, they should correspond with immediate payments"
Industry Insight: The World Federation of Advertisers (WFA) reported that the average payment terms for agencies have risen to 60 days, with many advertisers extending this to 90 days or more, creating cash flow stress especially for independents. (Adweek – WFA Report)

The 4A’s “Ripple Effect of Extending Payment Terms” report highlights that 90–120 day payment terms are becoming increasingly common, forcing agencies to rely on credit to cover salaries and production costs. (4A’s Report PDF)
Extended payment terms
Answer by Ainara Martín, TOLKA (Mexico)
"If clients demand immediate creativity, they should correspond with immediate payments"
Industry Insight: The ANA/4A’s “Cost of the Pitch” study (2023) found that agency reviews cost clients $408,500 USD on average, while agencies themselves absorb large unbilled expenses in staff time and creative development. (ANA Report)
The TrinityP3 “OUCH! Factor” report (2022) revealed that agencies spend an average of 175 hours per pitch, equating to ~$44,000 USD of unbilled work — and when factoring in lost pitches, the real cost often doubles. (TrinityP3 Report)
Unpaid pitches = invisible costs
Answer by Viridiana Ramírez, Client Procurement (Mexico)
“Let’s define shared KPIs. Procurement seeks savings, agencies seek creativity and fair profitability.”
Industry Insight: A Deloitte Global CMO Survey shows that procurement teams mainly focus on cost savings and compliance, while agencies prioritize creativity, talent retention, and brand growth — creating tension when objectives are misaligned. (Deloitte Global Marketing Trends)
The WFA’s Project Spring report found that 72% of agencies believe procurement primarily sees them as a cost to be reduced, while only 36% of marketers believe procurement adds real strategic value. (WFA Project Spring)
Procurement vs Agencies
Answer by Carlos Pezzani, Consulting (Argentina)
“Know your costs and defend your value — that’s your only sustainable leverage.”
Industry Insight: A McKinsey analysis shows that advertising agencies typically operate on profit margins of 10–15%, much lower than many industries. Over-negotiating fees risks pushing agencies below sustainability thresholds, reducing their ability to invest in innovation and talent. (McKinsey & Co. – Media & Entertainment Insights)
The IPA’s “Pricing the Value of Creativity” report highlights that undervaluing creative services leads to a race to the bottom, eroding profitability and long-term brand impact. Agencies that fail to defend value risk commoditization. (IPA Report)
Negotiating Without Destroying Margins
Answer by Camila Farías, RC Farias (Colombia)
“If agencies collaborate and align expectations during pitches, we protect each other and create healthier competition.”
Industry Insight: A Forrester Research study notes that multi-agency collaboration improves marketing effectiveness by 20–30%, as brands benefit from specialized expertise when agencies work together instead of competing destructively. (Forrester Report)
The Association of National Advertisers (ANA) stresses that successful brand growth increasingly relies on ecosystems of agencies that share data, resources, and ideas — collaboration is now a strategic imperative. (ANA Report)
Collaboration Between Agencies
The Way Forward
These insights remind us that financial practices are not just operational details — they determine how creativity is valued and sustained. By addressing these challenges openly and collaboratively, agencies, procurement, and clients can build fairer practices and a stronger, healthier industry.
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