Agency Compensation : Agency compensation (general)

This compilation of resources on scope of work includes best practices, ANA member case studies, and information on managing agency relationships.

This research report draws on survey research conducted throughout 2009 and also highlights "hot" topics to marketers such as brand building, newer media, agency evaluations, marketing accountability, agency holding companies, global marketing, agency audits, and hourly rates.

Industry experts discussed the results of an ANA survey on agency evaluations.

Industry experts discussed the results of an ANA survey on agency evaluations.

Digital agency compensation is generally two times higher than traditional agency compensation. The 4A's recently released the publication Understanding the Economics of Digital Compared to Traditional Advertising and Media Services to address this issue. Highlights from the publication were discussed by Mike Cordova, senior vice president, CFO, McCann Worldgroup, Asheta Shah, director, business management, McCann Worldgroup, and David Smith, CEO, Mediasmith, in this meeting.

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

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).

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.

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.

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.

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

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.

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.

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.

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.