Agency remuneration: How do you put a price on magic?

This article looks at whether decisions on creative work are too heavily influenced by price. It cites the IPA booklet Magic and Logic, which describes best practice in many areas of agency-client relationships.

Agency remuneration: How do you put a price on magic?

Paul BainsfairIPA

Procurement has become a dominating force in marketing services and many question whether it is healthy for decisions on creative work to be too heavily influenced by price. The IPA booklet published several years ago, Magic and Logic, which describes best practice in many areas of agency-client relationships, bears a closer look.

Once upon a time, ad agencies were paid on commission. Whatever the advertiser spent, the agency would receive 15% of the client's budget. But times change and today the notion of paying your...

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