Agency Compensation

Industry experts discussed a number of issues surrounding trends in digital agency compensation including agency engagement and the changing digital landscape.

Eric Jillard, department manager of digital marketing at Mercedes-Benz, and Andy Dutter, vice president of business development for Razorfish, shared their thoughts on best practices for driving efficiency in both the agency selection process and in the contractual/scope of work phase of client-agency engagement.

Industry experts discussed a range of issues regarding finance and procurement including cost containment strategies, agency incentive compensation, and behavioral targeting.

Representatives from Deutsch, MRM Worldwide, and R/GA discussed key issues facing digital media.

Eve Reiter and Sal Vitale at American Express discussed ways to continue evolving the role of agency relations and procurement and presented best practices for 2010 planning.

A panel of digital agency experts from Deutsch LA, Ignited, and MRM Worldwide discussed digital issues including client education, digital agency compensation, the RFP process, Twitter, and digital agency evaluations.

Rich DelCore, Finance Director, Global Marketer, P&G, led a discussion about P&G’s new agency compensation model—the Brand Agency Leader (BAL).

Sarah Armstrong, Director, Worldwide Media & Communications Operations, The Coca-Cola Company (TCCC), shared the principles behind TCCC’s transition to value-based agency compensation.

This article explains the importance of a well structured contract and provides guidelines on how advertisers and agencies can collaborate to write one.

Members of the Agency Relations Committee describe the role that direct multipliers play in their agencies’ compensation.

Steve Farella, President, CEO, TargetCast TCM, Inc., and Phillip Sloan, SVP, Director of Digital Marketing, TargetCast TCM, Inc., shared their agency perspective on how digital media costs can be lowered.

The Grossman Grid, developed by Neal Grossman, Chief Operating Officer of TBWA\Chiat\Day - Los Angeles, provides a tool to facilitate discussion between advertisers and agencies on the method of compensation best suited for mutual business needs.

The Grossman Grid, developed by Neal Grossman, Chief Operating Officer of TBWA\Chiat\Day, Los Angeles, provides a tool to facilitate discussion between advertisers and agencies on the method of compensation best suited for mutual business needs.

This article presents the findings of ANA research that reports on the type of compensation arrangements used by marketers to pay their agencies.

Team Detroit was created after the holding company WPP acquired many of the agencies that worked with Ford. Sue Markowicz from Ford and Bob Mueller of Team Detroit discussed best practices in managing multiple agencies.

Representatives from Ernst & Young discussed media agency audits and the importance of audits in a dynamic media landscape.

Three experts—Robert Cauley of Beekman Associates, Neal Grossman of TBWA/Chiat/Day Los Angeles, and Penny Wong of PepsiCo Inc.—discussed how to determine agency compensation and touch on issues including salary definitions, management fees and finding alignment between advertisers and agencies.

Members of the Advertising and Financial Management Committee share how they track and verify agency hours, using a compensation formula of Direct Salary + Overhead + Mark-up.

An open discussion on compensation to digital agencies featured macro findings from the ANA Interactive Agency Compensation Survey and challenges and concerns that members have.

Arlene Villanueva, Global Media Director, Integrated Marketing/Global Media at Intel, took us behind the scenes of Intel’s $300 million global media agency review. The review “decoupled” media (also called “unbundled” in the industry) as Intel moved to what it calls an “open source model,” impacting about 25 countries.

ANA members provide insight on labor-based fees for above-the-line and below-the-line agency compensation agreements.

John Adams, Chairman and CEO of The Martin Group dicusses topics related to client/agency relations including compensation agreements scope of work agreements that lead to better work.

A panel of search consultants shared their expertise on best practices for clients to follow when hiring a search consultant to recruit an agency.

This article outlines factors marketing executives should consider when preparing for an agency audit.

This article explores how client/agency relationships can be used to execute successful integrated marketing campaigns.

While there's been much talk about new types of methods, particularly value-based compensation, there haven't been enough practical applications and shared lessons/best practices. Meanwhile, spending on digital media has exploded and compensation to digital agencies requires a unique understanding.

Panelists broadly explore key media issues and their financial implications including: the role of procurement in media negotiations, the future for “brokering”, eMedia buying, online exchanges and the evolution of magazines and TV in the digital world.

David Lubars is chairman and chief creative officer of BBDO North America. As he sees it, his job is to help BBDO maintain its brilliance in traditional mediums, but also create extraordinary things for clients in mediums yet to be defined.

Beekman’s standard definitions, which should prove to be a strong basis for developing a best-in-class client/agency contract.

The CEO of TBWA Neal Grossman along with two other panelists explore fair agency compensation from three vantage points: client, agency, and compensation consultant. Topics of the discussion include compensation methodologies, appropriate transparency, definitions, hours, salaries, overhead, profit, and direct client expenses.