01 November 1999

PROCTER & GAMBLE-STYLE payment by results could become the norm for UK agencies as predicted. A report published by the Incorporated Society of British Advertisers forecasts that within five years 75% of agency remuneration will be results-related - a trend growing at 20% annually for creative accounts and 28% for media business.

The trend is more pronounced among larger shops and bigger-budget accounts; and will lead, says ISBA, to better client/agency relationships. Among those [unquantified] agencies already paid by results, 75% believe the formula provides a better incentive for effectiveness.

Commenting on the study, jointly carried out by ISBA and the Advertising Research Council, IPA chair-man Rupert Howell said: 'This is a well-researched, comprehensive and sensible study which should encour-age clients and agencies to pursue at least an element of PBR in their remuneration agreements.'