Client-agency relationships: Agency remuneration

 

In this article, Geoffrey Precourt, Warc’s US Editor, reports from an Association of National Advertisers’ Agency/Client Forum at New York Advertising Week 2009. He focuses on a presentation by Coca-C ...

This paper argues that many businesses fail to distinguish between price and transaction costs, and fatally ignore the latter while trying to reduce the former. Low-cost competitors may succeed not be

The article discusses agency remuneration. Following the demise of the commission system and the separation of media buying, creative agencies have to negotiate fees with each client, and are mostly u

We face one of the most challenging business environments for years. Recessions caused by liquidity problems are particularly severe. This book is based on Ogilvy's experience of winners in recession

This article argues that agency compensation is based on the wrong paradigm. The existing cost-based model rewards agencies on the basis of hours spent, and leads to excessive concern with recording a ...

This article discusses some of the findings of the ANA Interactive Agency Compensation Study. This research was based on a survey of more than 100 ANA members who collectively spend in excess of $100 ...

This article argues a misaligned incentive system is a major reason why nearly half of campaigns are ineffective. The commissions system is based on volume, therefore attracting new business through w ...

This article argues that the predominant cost-based model of client agency relationships is wrong, because it misaligns the economic incentives on each side, and payments do not depend on value create ...

Simon White, marketing and business development director for Momentum UK, puts the case for a radical rethink of how agencies are structured. He argues for 'upstream thinking' (which influences everyt ...

If clients and agencies are both to fully realise their aims, then a relationship is required that is based on the development of ground-breaking ideas and a focus on the future. Often, however, this ...

Traditional models of agency remuneration have fallen under scrutiny in recent times, with cost-plus and labour-based methods increasingly being seen as outmoded in the current media environment. New ...

This paper includes an historical look of how agencies have been remunerated for their work, including a brief examination of the main approaches currently in use (commission, fees, incentives and hyb ...

This paper suggests ten ways in which advertising agencies can make a profit in today's unpromising environment of fees and payment by results. These include revolutionising the approach towards the s ...

This article reproduces an excerpt from Inside Advertiser and Agency Relationships: A Hands-On Guide for Practitioners, an in-depth secondary analysis of a substantial ANA survey among advertisers int ...

This paper describes the process of setting appropriate guidelines to aid advertisers and agencies in the face of growing numbers of compensation disputes. Faced with a mandate to clarify how agency’ ...

The literature of marketing communication in the latter half of the 1990s offers evidence that interactive marketing is a significant presence in the field of marketing communication, and that control ...

Are advertising agencies getting the credit they deserve? Gordon Torr takes an oblique look at the creative process and makes the case for agencies owning their creative ideas.

Reports briefly the 13th ANA triennial Agency Compensation Survey. There has been significant move away from commissions, now used by only 10% of survey respondents, towards fees as the dominant payme ...

The principles of `procurement’ have evolved from being a set of purchasing techniques to being an integral part of business management in which value is increased and waste avoided. Agencies are wary ...

Paul Sherman, founder of Broaden, a purchasing strategy consultancy, believes the role of the procurement officer in negotiating agency remuneration is here to stay. He outlines the reasons why and d ...

In this edited version of a presentation given by Graham Beckett at the Results International Conference in Seville, October 2003, he argues that since the demise of commission remuneration for agenci ...

Argues that, as the economy improves in the US (2004), it would be a good time to adopt sequential liability as an industry standard for paying the media. Sequential liability means that if a media bu ...

Argues that advertising agencies will face severe problems in future if they do not improve and update the way they treat their talented staff. Recent reports from the IPA, NABS and the recruitment ag ...

Mark Cross, PHD Compass, calls for a re-evaluation of the ways media agencies are remunerated. Commission based payment is still common, despite its abandonment in favour of fees by creative service a ...

Media neutrality is central to an integrated communications approach. But most clients increasingly use a number of specialist agencies to develop and implement their communications - this, it is argu ...

John Griffiths asks why agencies never take revenue directly from the consumer. He reminds readers that TV production companies, film organisations and broadcast networks all generate funds directly f ...

In this article Jane Asscher asserts that a media-neutral approach to planning should place the consumer at the heart of the issue, rather than being secondary to media selection. She argues that budg ...

A transcript of an interview with Don Calhoon, EVP Marketing for Wendy's International Inc. covering building and sustaining client/agency relationships and remuneration issues.

This paper describes research conducted by the author that lead to the publication of the UK joint national industry association guidelines on the use of payment by results (PBR) in advertising agency ...

Jonathan Lace draws on his book 'Paying for Advertising in Europe' in this wide-ranging discussion on global agreements with emphasis being placed on methods of remuneration and payment by results. H ...