Many agencies, including those who switched in late 2003, are believed to be unaware of the implications of their decisions in the new TV trading environment.
Unless they have client-specific contracts directly with ITV or with their agency, the Contract Rights Renewal (CRR) remedy, which is designed to protect advertisers, offers them no protection.
Most advertisers are pooled into agency deals with ITV. However, it is becoming apparent that they cannot automatically transport terms from one agency to another. ITV is insisting agencies renegotiate their entire agency deal if they try to seek better terms for new clients. With the merged ITV having a stronger negotiating position, agencies are reluctant to do this.
To satisfy clients' needs, they are likely to pass the cost on to other clients in the agency pool, or refer the case to the Ofcom adjudicator.
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