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ANA Publishes Guidebook for Agency Compensation

ANA Publishes Guidebook for Agency Compensation
Book available for purchase now through ANA

New York, NY - A new comprehensive guidebook to provide marketing and advertising managers with insight into structuring, negotiating, and managing agency compensation has been published by the ANA (Association of National Advertisers). 

The third edition, Agency Compensation: An ANA Guidebook, authored by David Beals, president and CEO of Jones Lundin Beals, is the first update to the guidebook since 2001. Much of the media landscape and thus many aspects of the agency compensation arena have changed since then.  Major developments since the last publication of this guidebook include:

  • A more complex and fragmented media environment. Many of today's media forms were on few marketers' minds in 2001, and have gained prominent roles since.
  • A growing number and variety of marketing communications agency options have emerged over the last decade. This has led to a degree of confusion as to the role of each, and, in turn, how those agencies should be compensated.
  • New forms of agency compensation have been put in place. Led by Procter & Gamble, many marketers have instituted a sales-based commission for compensating their agencies. In addition, several agencies and, notably, The Coca-Cola Company have begun to champion value-based compensation.

This newly revamped edition of the guidebook refers to all marketing communications services and the compensation of the agencies that provide them. Additional topics and issues addressed by this guidebook include:

  • The basics of agency costs and compensation.
  • Compensation agreements in use today, along with their pros and cons, and examples of their application.
  • The role and structuring of performance incentives in agency compensation.
  • Considerations in the compensation of media agencies and interactive/digital agencies.
  • Managing compensation for agency assignments on a multinational basis.

"This guidebook is intended to help marketers arrive at a compensation approach that creates a mutual advantage for both advertisers and their agencies," said Bob Liodice, ANA President and CEO.  "The best agency compensation agreements are decided on mutually and serve both the client and agency.  Any compensation agreement that works to the disadvantage of either party will eventually work to the disadvantage of both parties."

"With the variety and diversity of today's agency services and compensation options, proper planning is crucial for both the client and their agency. An aim of this guidebook is to assist marketers in the consideration of the options and to help them arrive at the compensation approach that best promotes the value in their agency relationships," said Beals.

Agency Compensation: An ANA Guidebook, authored by David Beals, is available for purchase now for $250 at www.ana.net/ebooks.  

 

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About the ANA

The mission of the ANA (Association of National Advertisers) is to drive growth for marketing professionals, brands and businesses, the industry, and humanity. The ANA serves the marketing needs of 20,000 brands by leveraging the 12-point ANA Growth Agenda, which has been endorsed by the Global CMO Growth Council. The ANA’s membership consists of U.S. and international companies, including client-side marketers, nonprofits, fundraisers, and marketing solutions providers (data science and technology companies, ad agencies, publishers, media companies, suppliers, and vendors). The ANA creates Marketing Growth Champions by serving, educating, and advocating for more than 50,000 industry members that collectively invest more than $400 billion in marketing and advertising annually.

Press Contacts:

Lesley Neadel
CooperKatz & Co. for the ANA 
lneadel@cooperkatz.com
917.595.3034

Luna Ross
CooperKatz & Co. for the ANA
lross@cooperkatz.com
917.595.3061