Agency Compensation

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.

Members of the ANA Agency Relations Committee were asked to provide insights on their Exclusivity Policies.

Deb Giampoli, Kraft's cross-functional agency team leader, discusses how Kraft evolved its agency compensation model from one focused on media commission to a unique hybrid of input- and output-based fees and had one primary objective in mind: financial transparency, more closely matching agency compensation to the work.

Two veteran agency search consultants - Dick Roth of Roth & Associates and Judy Neer of Pile & Co - provided insight on identifying the core capabilities of a digital agency, ensuring agency collaboration, performing agency evaluations, identifying scope-of-work needs, and assessing accountability.

This article provides best practices and outlines how to determine an ad agency’s scope of work (SOW) and services.

Paul Smith, Senior Commercial Manager at Masterfoods, led a discussion about agency compensation models that touched on current and historical industry practices, new methods of compensation being adopted, case histories, and more.

These Guidelines have been developed through a variety of resources, including the extensive industry experience of management and labor trustees, and analysis and review by the Trustees, Plan staff and outside consultants.

This article reviews some of the key findings from the 2007 ANA Interactive Agency Compensation Study conducted by Jones Lundin Beals. Among them is the fact that agency-client relations is still at its infancy.

A panel of experts discussed reasons for auditing a Certified Marketing Rep (CMR), how often such audits should be conducted, and the types of issues often uncovered in an audit.

In this presentation, Jones Lundin Beals President and CEO Dave Beals explores challenges that must be addressed for value-based compensation--an approach in which the agency fee is established based on the value, not the cost, of the services and work provided by the agency.

The ANA Agency Relations Benchmarking survey asked respondents questions on the agency search and selection process, agency evaluations, and agency conflict causes, among other topics. Russel Wohlwerth, Principal, Ark Advisors/AAI, discussed the results of this survey and their implications.

In 2007, the ANA fielded its triennial survey of the trends in agency compensation. Dave Beals, President and CEO of Jones Lundin Beals, shared the survey’s extensive results, covering methods of agency compensation, performance incentives, and the role of procurement in negotiating agency compensation.

ANA members provide insight on whether they are familiar with global SEM firms who work on a commission-based model to include media costs and management.

This article discusses an exclusive ANA survey that explores value-based client-agency relationships.

This snapshot provides an overview of an ANA benchmark survey that explores issues related to agency relations, including agency evaluations and agency conflict clauses.

In this presentation, Discover’s Mark Hosbein took the audience through the ad agency search that resulted in the hiring of The Martin Agency. While describing the process, he also shared some lessons learned along the way.

See the results of parallel surveys conducted by The American Association of Advertising Agencies and Association of National Advertisers in the spring of 2007. The survey was designed to assess agency and client attitudes and activities in four areas: 1. How agencies add value to the client's business; 2. How advertisers add value to the agency-client relationship; 3. Degree of interest in value-based compensation; & 4. Possible barriers to changing compensation methodology from cost based arrangements to value-oriented methods.

View the results of an interactive agency compensation survey exploring challenges related to the management of interactive agency compensation.

This article provides an overview of preliminary findings from the 14th Triennial Trends in Agency Compensation Study.

ANA members provide insight on media agencies and financial reporting, including how they ensure that they get transparency from their media agencies and the types of financial reports that their media agencies provide to them.