Client-agency relationships: Agency remuneration

 

This article addresses the thorny issue of adverting accountability and asks what is being done and what should be done to improve accountability standards. The author reviews current studies and ind ...

The author describes and discusses the triennial survey 'Trends in Agency Compensation', conducted by the Association of National Advertisers in the USA in 2000. This shows massive changes in the way ...

Examines the possibilities and the problems of agency PBR (Payment By Results) schemes. Unbundling of agencies into various specialisms led to fee-payment; this enabled agencies to charge for services ...

Brendan Ryan, CEO of FCB, asks in this speech to the 4A's 2001 Management Conference why sectors such as government, press and banking are losing faith in the advertising industry, and defends adverti ...

The Director General of the IPA discusses how clients and agencies should work together to establish a fair remuneration method. The IPA avoids recommending any one method. Pros and cons of the differ ...

Discusses agency remuneration, referring to the ISBA/ARC report `Paying for Advertising II' (2000). PBR (payment by results) is accepted increasingly, now in 34% of agency agreements. Evidence that it ...

Advertising agency remuneration has changed dramatically in the past decade as existing methods fell short in the provision of more certain equitability and incentive in the new age of cost cutting an ...

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 sat ...

It has become difficult to recruit and retain talented media professionals as more online startups offer lucrative packages. Agencies must re-evaluate their commitment to their staff. They must open t ...

Cutting or eliminating commission-based compensation is about ensuring that agencies are paid on quality and not quantity. The agency prospers if the client prospers. A study released by the Associati ...

This article examines creative-risk-taking behaviour by agencies and the circumstances that increase their propensity to take risks. Drawing upon agency theory, and the wider literature on risk in man ...

Argues that promotional marketing (below-the-line) is undervalued, bought at too low a level in marketing companies. The need to recognise/reward talent effectively. Decisions on below-the-line need t ...

From a feature of four articles on agency remuneration. Discusses the changing context affecting remuneration: the separation of media planning and buying, effect of the 1990 recession, new competitio ...

From a feature of four articles on agency remuneration. Argues in favour of a disciplined, transparent approach to costing and charging for the full range of agency services: how the author's agency d ...

From a feature of four articles on agency remuneration. Argues that agencies should be paid for creativity and performance, and describes how the author's agency does that. Argues against the commissi ...

The author reveals results from the 11th edition of ANA's Trends in Agency Compensation. The most significant finding is that most US advertisers use labour-based (or cost-plus) compensation agreemen ...

Argues that marketing companies must get to grips with the theory and measurement of brand equity. Summarises the findings of a literature review conducted by the authors, leading to five conclusions: ...

Discusses new evidence on the effectiveness of `payment by results' (PBR) as a means of remunerating advertising agencies, based on a postal survey in 1997 among ISBA members and other major advertise ...

Argues that the agency commission system has been disastrous for magazine publishers because it has made it more profitable for agencies to use television. As a consequence, research which could have ...

Advertising agencies have witnessed a steady erosion of their share of their client's marketing budgets over the past 20 years. In shifting their budgets away from advertising agencies, clients are in ...

This article examines agency remuneration structures following the decline of commission-based versus fee-based income. It presents a classification of agency service into two functions, an 'ideas' fu ...

Discusses `agency theory' and its implication for agency remuneration. Agency theory (literature reviewed) is concerned with 'co-operative behaviour, or risk-sharing, between two parties with potentia ...

Agency revenues have suffered from squeezed budgets, squeezed margins and competition. This paper examines some of the uncomfortable implications, and rehearses the familiar alternatives to commission ...

Accountability and payment by results in the 1990s. Set in the US context, this article echoes similar trends in the UK. Client-agency relationships have become much tougher. It describes how remunera ...

Volney B Palmer in 1841 started out matchmaking between media owners and advertisers. The publishers were his clients, and the advertisers were charged 25% commission. Over the next 100 years this was ...

The commission system for agency payment stubbornly survives. The author explains why, but argues that perhaps the time has come to change to payment by results. Without it, he thinks, advertising is ...

Discusses the relationship between advertising agencies and their clients. The author questions whether present arrangements serve the needs of clients adequately, and suggests that agencies must recr ...

Argues for a fee basis for agency remuneration. The range of services once offered by agencies developed because they were not allowed to compete on price, and few competed on creativity. Now advertis ...

The president of the IPA argues that the commission system remains the most effective, motivating and acceptable way of rewarding a full-service agency, which most advertisers still need. Evidence is ...

An advertiser reviews what a full service advertising agency should be doing for a client. The remuneration structure should be one which gives the client value for money without under-rewarding the a ...