Incentives Rise in Agency Compensation Deals, ANA Finds
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Performance-based incentives for U.S. agencies continue to gain popularity among marketers, according to a new survey, despite mixed reviews from agency executives on how much difference they really make.
The study was released by the Association of National Advertisers and consulting firm R3:JLB at the ANA Financial Management Conference in Scottsdale, Ariz.
Compensation plans that place a value on agency work separate from the labor or media spending involved have essentially disappeared despite being talked about with much fanfare several years ago by Coca-Cola Co. Even media commissions, the old industry standard that ‘s largely disappeared, are now in 5% of agency agreements, vs. no value-based plans reported among the 100 ANA member respondents in this year’s survey, said David Beals, CEO of R3:JLB. He blamed the lack of readily available objective data for determining the value.
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