Warc Briefing: Agency Remuneration
Definition:Agency remuneration typically comprises commissions, fixed fees, payment by results or a combination of these.
History and future outlook
Traditionally, advertising agencies in developed markets were paid a commission by media owners, calculated as a percentage of the value of the ads they placed for advertisers.
The most common commission rate was 15% of the gross cost of the advertising buy, or 17.65% of the net cost. Over time, however, media planning and buying became a specialist discipline, handled in isolation from the creative or strategic side of campaigns.
As a result of this unbundling,...