J&J Switches Asian Agencies to Payment by Results

22 February 2005

Johnson & Johnson, the US-headquartered multinational health care titan, has told its agencies in the Asia Pacific region they will this year be shifted to a fee-based, payment by results system.

Among those affected are the regional units of DDB, Lowe & Partners Worldwide and McCann Erickson; likewise its regional media shops, Initiative and Universal McCann.

Lips are zipped on both sides of the agency/client fence, although one unattributed source revealed that the new J&J contracts include substantial incentives linked to challenging but achievable targets. "It also allows us more control of media in our solutions," said the mole.

Payment based on media spend has been consigned to the trashcan. Opines Greg Paull, boss of the consultancy that imposed the new system: "Commissions are for estate agents."

Data sourced from BrandRepublic (UK); additional content by WARC staff