Pay For Performance

Agency compensation is the subject of this 2009 ANA article. P&G and Coca-Cola are seen as pioneers in embracing value-based compensation (VBC) models - which effectively break the link between the amount of time an agency works on a project and the amount it gets paid for the project.

Pay For Performance

Douglas Quenqua

With Coca-Cola and Procter & Gamble leading the way, the marketing community is beginning to embrace value-based compensation for agencies

Since 1985, saying “New Coke” to a marketing executive has been something of a warning, a reference to The Coca-Cola Company's unfortunate decision to tweak a product that didn't need tweaking, thereby alienating a loyal customer base. The lesson? If it ain't broke, don't fix it.

But this year, “New Coke” has taken on new meaning in advertising circles. After years of keeping its advertising plans close to the vest, often shunning the opportunity to...

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