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Journal of Advertising Research
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Journal of Interactive Advertising
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Date: oldest first
Perceptions of interactivity and consumer control in marketing communication: an exploratory survey of marketing communication professionals
William N. Swain, The Journal of Interactive Advertising, Vol. 6, No. 1, Fall 2005
The literature of marketing communication in the latter half of the 1990s offers evidence that interactive marketing is a significant presence in the field of marketing communication, and that control of interactive communication in many cases is passing into the hands of consumers.
The literature of marketing communication in the latter half of the 1990s offers evidence that interactive marketing is a significant presence in the field of marketing communication, and that control of interactive communication in many cases is passing into the hands of consumers. Perceptions of the development of communication interactivity, and measurement of the outcomes of interactive marketing communication--both as a basis for measuring marketing success and as a basis for determining marketing communication investment and agency compensation--are therefore legitimate subjects for research inquiry. A survey was conducted among marketing communication executives and educators to investigate perceptions of the present and future status of interactive and consumer-controlled interactive marketing communication, the degree of preparation for them, preferences for their measurement, and preferences for methods of compensating agencies for interactive marketing communication services.
Diving for pearls
Jonathan Lace, ESOMAR, Consumer Insight Congress, Barcelona, Sept 2002
This paper describes research conducted by the author that lead to the publication of the UK joint national industry association guidelines on the use of payment by results (PBR) in advertising agency remuneration agreements.
This paper describes research conducted by the author that lead to the publication of the UK joint national industry association guidelines on the use of payment by results (PBR) in advertising agency remuneration agreements. Set in the context of changing client/agency relationships, it describes the difficulties in researching the topic and how these were overcome, the contribution of various research methods employed, the pearls of wisdom that were discovered and the rationale for the final advice offered.
Payment-By-Results. Is There a Pot of Gold at the End of the Rainbow?
J M Lace, International Journal of Advertising, Vol. 19, No. 2, 2000
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 and accountability.
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 and accountability. Payment-by-results (pbr) has captured the imagination of marketing and advertising executives alike, but there is less certainty when it comes to implementation. Lengthy negotiations, trial and error and teething problems are common as both parties search to maximise potential benefits and eliminate potential pitfalls. This paper reviews some of the evidence and best practice advice as a precursor to describing planned research activity upon which fuller advice could be offered. There is already positive evidence of enhanced client satisfaction and improved income for agencies as a result of pbr, but less certainty on (1) whether this is perceived as having been good value, (2) how a scheme should best be structured, and (3) whether other potential benefits actually accrue. This evidence aims to provide reassurance and the example for new ingenuity.
Paying for advertising: Advice for retailers
J Lace, International Journal of Advertising, Vol. 18, No. 4, 1999
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.
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 satisfaction with their advertising agency remuneration agreement than clients in any other sector. As remuneration has the potential not only to sour day-to-day relationships, but more significantly to provide incentives to the agency for better advertising, a better agency service and value for money, getting it right is without doubt an important task. This paper examines the factors that are associated with satisfaction, notably the methods and practices of remuneration employed, the characteristics of the advertising task and advertiser situation, and advertiser attitudes on the equitability of the agreement. Findings indicate that changes to certain methods, practices and attitudes may be beneficial to both client and agency. Best-practice advice is offered, and conclusions drawn.
360 Degrees of Creative Risk
Douglas C West, Journal of Advertising Research, Vol. 39, No. 1, January/February 1999
This article examines creative-risk-taking behaviour by agencies and the circumstances that increase their propensity to take risks.
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 management decision making, two areas are investigated: (1) resolving the conflicting desires of agencies and advertisers, and (2) how advertisers control agent's risk-taking. A mail survey of senior creative directors across a cross section of agencies is used and data to test the hypotheses gathered. Analyses indicate that agencies are less risk-seeking than expected. Market response and advertisers have the most influence on agency risk-taking, and agencies take a portfolio approach to risk-being more likely to suggest creative risk-taking for relatively smaller clients. The findings are discussed in terms of developing winning creative ideas. Suggestions for future research are identified.
Advertiser Perceptions of Fair Compensation, Confidentiality, and Rapport
Douglas LaBahn, Journal of Advertising Research, Vol. 36, No. 2, March/April 1996
Advertising agencies have witnessed a steady erosion of their share of their client's marketing budgets over the past 20 years.
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 indicating that full-service agencies cost too much for the market impact they deliver. This paper explores how advertising agencies can use client service to strengthen agency-client relationships. Specifically, this study shows how advertising agencies can improve client perceptions of fair agency compensation, agency confidentiality, and rapport by behaving cooperatively and attending diligently to problems that arise within their relationships. Alarmingly, when the client observations of agency service were compared to the perceptions of their advertising agency, rather large discrepancies were found. The risk seems to be that, while there are numerous ways agencies can improve their relationships, many agencies may incorrectly believe that they are already doing a superb job.
OBSERVATIONS: Agency Theory as a Framework for Advertising Agency Compensation Decisions
R. Susan Ellis and Prof L W Johnson, Journal of Advertising Research, Vol. 33, No. 5, September/October 1993
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 potentially differing goals and different risk preferences: the principal and its agent'.
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 potentially differing goals and different risk preferences: the principal and its agent'. Agency theory identifies two types of compensation scheme: behaviour-based and outcome-based. The former tends to be preferred by the agent, but can be difficult to monitor. Outcome- or 'performance-based' remuneration is discussed, with problems, e.g. difficulty of monitoring or assessing performance. Five possible formulations for agency remuneration are compared and discussed against this background. Recommended that these propositions should be tested by large scale surveys of industry practice throughout the world (pilot survey in Australia planned).
The agency commission system in Britain: a first sketch of its history to 1941
David S Dunbar, History of Advertising Trust, No. 2, 1979
Advertising agencies date back to the end of the eighteenth century. By 1819 there was in existence an accepted method of operation for this new business.
Advertising agencies date back to the end of the eighteenth century. By 1819 there was in existence an accepted method of operation for this new business. The agent placed the announcements for the advertiser, checked their correct appearance, paid the publications and presented one bill to his client. The agent kept for himself the 'commission' on the net amount allowed to him by the publisher. This system continued unchanged until the 1880s. Between 1880 and 1920 was a period of transition from predominantly classified style of advertisements to the extended use of creative and design possibilities in the twentieth century.
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