Advertiser Perceptions of Fair Compensation, Confidentiality, and Rapport

Douglas LaBahn

Advertising agencies have witnessed a steady erosion of their share of their client's marketing budgets over the past 20 years.

Advertiser Perceptions of Fair Compensation, Confidentiality, and Rapport

Douglas LaBahn

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,...

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