Insider Intelligence delivers leading-edge research to clients in a variety of forms, including full-length reports and data visualizations to equip you with actionable takeaways for better business decisions.
In-depth analysis, benchmarks and shorter spotlights on digital trends.
Learn More
Interactive projections with 10k+ metrics on market trends, & consumer behavior.
Learn More
Proprietary data and over 3,000 third-party sources about the most important topics.
Learn More
Industry KPIs
Industry benchmarks for the most important KPIs in digital marketing, advertising, retail and ecommerce.
Learn More
Client-only email newsletters with analysis and takeaways from the daily news.
Learn More
Analyst Access Program
Exclusive time with the thought leaders who craft our research.
Learn More

About Insider Intelligence

Our goal at Insider Intelligence is to unlock digital opportunities for our clients with the world’s most trusted forecasts, analysis, and benchmarks. Spanning five core coverage areas and dozens of industries, our research on digital transformation is exhaustive.
Our Story
Learn more about our mission and how Insider Intelligence came to be.
Learn More
Rigorous proprietary data vetting strips biases and produces superior insights.
Learn More
Our People
Take a look into our corporate culture and view our open roles.
Join the Team
Contact Us
Speak to a member of our team to learn more about Insider Intelligence.
Contact Us
See our latest press releases, news articles or download our press kit.
Learn More
Advertising & Sponsorship Opportunities
Reach an engaged audience of decision-makers.
Learn More
Browse our upcoming and past events, recent podcasts, and other featured resources.
Learn More
Tune in to eMarketer's daily, weekly, and monthly podcasts.
Learn More

Late Payments in the Ad Tech Space Are Increasingly Common

Late payments are disruptive to all types of businesses. But how common are they within the ad industry?

Financial intermediary OAREX Capital Markets analyzed more than 10,000 invoices from its clients—publishers, ad tech vendors and agencies—and found that over the past year, 55% of payments came late. On average, late payments came in about a week late, and nearly 10% of late payments came in more than 15 days late.

About three in 10 invoices were paid early and only 14% were paid right on time. The vast majority of invoices (73%) were paid the correct amount. Of invoices without the right payment amount, more were overpaid than underpaid. Just 11% of invoices were underpaid compared with 17% that were overpaid.

The stipulations of contracts vary by company, but ad agencies and publishers often wait 60 days or longer to get paid by the firms they do business with. This can put companies in a tough position.

For instance, if a publisher gets a traffic surge one month, it will have to wait awhile to get redeemed for all the ads it served. And OAREX’s data shows that due to late payments, the publisher will likely wait even longer to get paid than anticipated. Contracts, which are supposed to pay out two months after ads run, get stretched out and suddenly the publisher may find itself going 12 weeks before making money off the user attention it delivered to its advertisers.

If a payment comes in a week late every 60 days, the companies receiving the payment will have to set aside 15% more capital to cover the shortfall, OAREX CEO Hanna Kassis estimates. The frustration that late payments creates can be seen in reddit threads where ad professionals take their vendors to task for stiffing them.

The byzantine ad supply chain makes it difficult to track late payments. With money getting passed between advertisers, demand-side vendors, publishers and supply-side vendors, it can easily become a boondoggle to figure out where the disappearing ad dollars are going.

In March 2018, Warc estimated that the total “tech tax” accounted for 55% of all programmatic ad spend worldwide last year.