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ANA Releases First-Ever Global Survey on Agency Compensation Results Reveal Key Similarities, Differences in Global vs. U.S. Practices

New York, NYMay 9, 2012 – The ANA (Association of National Advertisers) today released the first-ever Global Agency Compensation Survey, revealing new insights about how global marketers structure and manage compensation practices with their advertising agency partners. Results of this benchmark study, which polled marketers operating in nearly 40 countries across all continents, in many cases mirror U.S. practices. The study found:

Important differences, however, emerged in the survey:

“With this groundbreaking survey – the first-ever conducted on a global basis – the marketing community now has a vital benchmark to track worldwide approaches and innovations in how marketers compensate their agency partners,” said Bob Liodice, president and CEO, ANA. “Global marketers will now be better able to understand how their peers are wrestling with the challenges of compensating agencies across diverse countries, cultures and conditions.”

In negotiating, overseeing and tracking agency compensation, global marketers in the survey noted a spectrum of management models, from centrally-managed at corporate headquarters, to regionally-managed by divisions, to locally-managed at the individual country level.

Furthermore, 75 percent of global respondents report that corporate procurement departments are significantly involved in the management and negotiation of agency compensation.  Of this number:

“While many global marketers may establish their approach to agency compensation at corporate headquarters, most need to rely on their regional and local operations, in combination with their procurement colleagues, to effectively address significant differences in local costs, practices, laws and cultures,” said David Beals, President and Chief Executive Officer of R3:JLB.

The respondents to the survey provided a long list of open-ended responses that suggest acute challenges associated with managing global agency compensation, including:

This ANA Global Agency Compensation Study was fielded online in February and March of 2012. In total, 71 client-side marketers participated from global marketing organizations including Brown-Forman, Dell, Ford, IBM, Intel, Johnson & Johnson and Merck.

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About the ANA

Founded in 1910, the ANA (Association of National Advertisers) leads the marketing community by providing its members with insights, collaboration, and advocacy. ANA's membership includes 450 companies with 10,000 brands that collectively spend over $250 billion in marketing communications and advertising. The ANA strives to communicate marketing best practices, lead industry initiatives, influence industry practices, manage industry affairs, and advance, promote, and protect all advertisers and marketers. For more information, visit http://www.ana.net, follow us on Twitter, join us on Facebook, or visit our YouTube channel.

 

Press Contacts:

Luna Newton

CooperKatz & Co. for the ANA

lnewton@cooperkatz.com

917-595-3061

Marcus Hardy

CooperKatz & Co. for the ANA

mhardy@cooperkatz.com

917-595-3043

 

 

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