Agency remuneration

The issue of paying agencies and agency remuneration has always been beset by difficulties. In this Best Practice article, Merry Baskin looks at the different ways to remunerate agencies beyond traditional and historic models of agency compensation.

Agency remuneration

Merry BaskinBaskin Shark

Merry Baskin examines fee structures that should keep the procurement department and agencies happy, and the common pitfalls to be avoided

According to the Incorporated Society of British Advertisers, over half of agency contracts put some of their fee at risk by including a variety of performance-related incentives.

Once upon a time, brands grew and advertising budgets grew alongside them. Neither client nor agency bothered much which half of the advertising budget was working. Add a couple of global recessions, growth stalling, spends shrinking, media consumption splintering and consumers Sky Plus-ing over the ad...

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