Sign of the times: Agency compensation around the world

Duke Fanelli

ANA's first global agency compensation study reveals that fees now dominate.

A first-ever study of global agency compensation practices by the ANA uncovered new insights into how marketers structure and manage compensation with their agency partners. The benchmark study, based on a survey of marketers operating in nearly 40 countries across all continents, found that as many as two-thirds of respondents plan to change their agency compensation arrangements this year.

Fees are the dominant method of agency compensation globally, practiced by 57 percent of respondents, and 37 percent use fees in combination with commissions. None of the respondents indicated using only the traditional commission structure to compensate their global agencies. While newer forms of compensation, like value-based remuneration, have not taken hold globally, nearly 50 percent of respondents employ performance-based incentives.