Marketers returning to commission-based pay models for agencies

Marketers are increasingly moving away from paying their agencies based on fees and incentives and instead adopting compensation models in a bid to ‘simplify’ pay models, according to a ANA report.

Marketers are moving away from using fee and incentive-based agency models in favour of compensation models as they look to “simplify” the relationship with their agencies and ensure they are getting the best value for money, according to a new report.

The research, by the US advertising association the Association of National Advertisers (ANA), says brands are becoming more aware of their agency compensation packages. It found that the involvement of senior management in agency negotiations has more than doubled from 33% three years ago to 77% in the most recent survey, undertaken in December 2016 and January 2017.

The report suggests…

Bron en volledig bericht: MarketingWeek