Perfume marketer Coty has launched a global media agency review and has told potential candidates that it wants five months to pay its bills.
According to sources, the client’s brief focuses in large part on efficiency, with little if any attention to effectiveness or consumer insights.
Omnicom’s OMD — which handles Coty media duties in the U.S. and other markets -- is not participating in the review, according to sources. OMD declined to comment, and Coty officials could not be reached for comment.
Other marketers have demanded extended payment terms, but it is believed that Coty’s demand for five months may be a record — assuming that participating agencies agree.
The Coty advertising account is large, so its demand for the extremely lengthy payment terms may get some takers. The firm’s consolidated expenses for advertising and promotional costs were $1.070 billion, $1.072 billion and $1.086 billion in fiscal 2014, 2013 and 2012, respectively, according to the company’s 2014 annual report.