In what has traditionally been a sign of trouble for advertising networks, SAY Media has changed its terms to paying publishers NET 120, four months after they have run the ads.
There is a reason for advertising networks delaying payment for a short period to obtain payments from brands and advertising agencies, but many networks including Casale Media, Valueclick Media, and Google AdSense manage to pay their publishers NET 30 or better.
NET 45 or NET 60 are not uncommon, but pushing towards NET 120 is a worrying sign that SAY Media is struggling may be struggling cash-flow. The company has traditionally paid NET 90 which is quite rare in itself, but struggling with that time frame is a concern to publishers that rely on them for ad sales.
The network has offered publishers the chance to pay a fee to be paid earlier, but this will do little allay publisher’s issues with the change in terms.
In a message sent to publishers, SAY Media said:
To our valued publisher partners
As you are probably aware, the last year has seen an escalation of brands, agencies and networks taking longer to pay. This has impacted companies across the advertising landscape, including Say Media. Like many others, we have to adjust our payment terms in an effort to combat this trend. Therefore, effective April 1, Say Media is moving to net 120-day payment terms for all publishers.
We recognize that many of you would like accelerated payments so we have partnered with FastPay, the industry leader in advanced payment solutions, to offer more flexibility in payments. Through FastPay, you have the option to accelerate payments to Net 30, 60 or 90-day terms for a small fee. Through this partnership, all payments, regardless of payment terms, will be processed by FastPay.