Paying for advertising: Advice for retailers

J Lace

How best to pay an advertising agency is a long-standing debate, but up till now there has been little empirical evidence upon which to base decisions.

Paying for advertising: advice for retailers

Jonathan M Lace

How best to pay an advertising agency is a long-standing debate, but up till now there has been little empirical evidence upon which to base decisions. In a recent survey, retailers reported lower satisfaction with their advertising agency remuneration agreement than clients in any other sector. As remuneration has the potential not only to sour day-to-day relationships, but more significantly to provide incentives to the agency for better advertising, a better agency service and value for money, getting it right is without doubt an important task. This paper examines the factors...

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