Old agency models die hard

The article discusses agency remuneration. Following the demise of the commission system and the separation of media buying, creative agencies have to negotiate fees with each client, and are mostly unhappy with how this is done.

Old agency models die hard

Paul Feldwick

Q How can agencies get paid properly for their ideas, and not just how many hours they put against a brief?Angela Johnson, deputy managing director, Ogilvy Advertising

A There was a time when neither agencies nor their clients had to worry very much about how the agency got paid.

Officially, the media paid for everything, through a fixed commission received by 'recognised agencies' – normally 15% of billings.

This funded a wide range of services to the client at no direct cost to them. The agency planned and bought media, advised...

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