Agency Compensation : Agency contracts

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.

Genentech has developed a comprehensive structured agency evaluation program from scratch using ANA best-practice concepts and shared its learnings on the program.

In order to better establish benchmarks on practices and perceptions related to agency performance evaluations, ANA conducted a member survey. The survey findings report on incidence/frequency, types of agencies evaluated, evaluation criteria, benefits, recent improvements/adjustments, specific best practices, and more.

Casey Jones, cofounder & CEO, Jones & Bonevac, discussed the need for marketers to improve the briefs they disseminate to their agencies of record.

This Research Report explores the incidence and best practices of agency evaluations and covers the following areas: frequency, evaluating multiple agencies/agency types, value of 360-degree evaluations (meaning the agency also evaluates the client), use of technology to facilitate evaluations, and more.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

This sample media buying and media planning contract contains boilerplate language to use in writing an agency services agreement.

These materials provide a guide to understanding direct labor, overhead, and components of cost-plus and labor-based agreements.

These materials provide a hands-on guide for evaluating and managing the ideal advertiser-agency relationship based on findings from an exclusive ANA study.

On-going member discussion and related materials regarding the Agency Overhead Task Force.