Warc Briefing: Agency Remuneration

This briefing offers an overview of the history, theories and key trends related to Agency Remuneration.

Warc Briefing: Agency Remuneration

Definition:Agency remuneration typically comprises commissions, fixed fees, payment by results or a combination of these.

History and future outlook

Traditionally, advertising agencies in developed markets were paid a commission by media owners, calculated as a percentage of the value of the ads they placed for advertisers.

The most common commission rate was 15% of the gross cost of the advertising buy, or 17.65% of the net cost. Over time, however, media planning and buying became a specialist discipline, handled in isolation from the creative or strategic side of campaigns.

As a result of this unbundling,...

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