Working closely with media companies and content publishers across Africa, I have identified a critical topic that they consider paramount: cashflows.
Our publishers are currently facing several significant challenges. Firstly, they encounter issues with advertisers credit terms, which typically involve waiting for payment for 120 to 150 days after completing campaigns. Secondly, advertisers tend to decrease their spending during periods of economic uncertainty, impacting the publishers’ cashflows. Lastly, the forex crunch and losses arise when vendors or service providers charge in foreign currencies such as USD, GBP, or Euros, requiring companies and content publishers to convert their local currencies to make payments, especially if they do not have sufficient foreign currency reserves.
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Imagine having to manage payroll for employees, pay vendors, and fulfill debt or investor obligations while having no certainty about receiving timely payments for completed campaigns within the same month. Unfortunately, this is the reality for many of our clients in the media business.
Our clients can be categorized into three groups based on their digital revenue:
1. Those that generate sufficient digital revenues to be paid out on a monthly basis.
2. Those that generate enough digital revenues to be paid out quarterly.
3. Those whose digital revenues are so minimal that they might receive annual payouts.
To address these challenges, Atunwa has developed strategies to assist our clients:
- We minimize delays on receivables longer than Net-60 by issuing payments while actively working with advertisers to align with their respective payment timelines.
- For clients who do not meet the monthly payment thresholds for regular payouts, we offer prepayments that can be recouped from their future earnings.
When providing these solutions, we carefully consider several factors, including the strength of our working relationship with the client, the volume of their digital inventory, and their willingness to implement our recommended “setup” to ensure the delivery of premium inventories for effective monetization. By considering these elements, we aim to support our clients in overcoming their cashflow challenges and achieving greater financial stability.