Over half of agency compensation deals involve pay-for-performance

Parekh, Rupal; Bruell, Alexandra
May 2013
Advertising Age;5/13/2013, Vol. 84 Issue 19, p1
Trade Publication
The article discusses advertising agency accounts in which advertisers pay agencies on an incentive-based contract. A survey of members of the Association of National Advertisers finding that 61 percent of them were placing incentives in compensation agreements in 2013 is examined. It is noted that media buying services are more willing to sign such agreements while interactive advertising agencies resist them.


Related Articles

  • P&G PAYMENT PLAN ANGERS AGENCIES. PAREKH, RUPAL; SCHULTZ, E. J. // Advertising Age;5/20/2013, Vol. 84 Issue 20, p8 

    The article considers complaints by advertising agencies over extensions of the time period for payments to them made by the major advertisers Procter & Gamble Co. and Mondelez.

  • MAKE SURE YOU'RE SEEING EYE-TO-EYE.  // Advertising Age;5/13/2013, Vol. 84 Issue 19, p1 

    The article offers suggestions for advertising agencies negotiating incentive-based contracts with clients including avoiding doing so in the first year of an account, creating a baseline for compensation and making sure the agency and client have incentives based on the same measurements of...

  • The Secret Marketer.  // Marketing Week;9/13/2012, Vol. 35 Issue 35, p15 

    The author looks at the relationship between marketing and advertising agencies and their clients, noting advantages and disadvantages of keeping marketing functions in-house versus outsourcing them to an agency, and making an analogy with governments' decisions about outsourcing certain functions.

  • THE AGENCY A-LIST. NEFF, JACK // Advertising Age;2/3/2014, Vol. 85 Issue 3, p17 

    The article focuses on the advertising agency Grey Advertising Inc. The agency is presented with the Agency of the Year award in the publication's 2014 Agency A-List awards. It is cited for both increases in growth and revenue in 2012-2013, acquisition of new clients in that period and for...

  • Swiss-army agency: Giant clients again opt for all-in-one dedicated approach. PAREKH, RUPAL // Advertising Age;5/7/2012, Vol. 83 Issue 19, p5 

    The article considers a trend in which major advertisers are consolidating their advertising accounts within what is known as a dedicated agency, an advertising agency created by an agency holding company which has only that advertiser as a client. Companies cited as examples of such advertisers...

  • 2013 AGENCY REPORT. Johnson, Bradley // Advertising Age;4/29/2013, Vol. 84 Issue 17, p1 

    The article considers U.S. advertising agency finance in 2012 and offers forecasting for 2013. A contrast is noted between the high stock prices for agency holding companies including Omnicom Group, Dentsu Inc. and WPP Group and a relatively modest overall increase of 5.6 percent in advertising...

  • 10: ARNOLD. PAREKH, RUPAL // Advertising Age;1/23/2012, Vol. 83 Issue 4, p18 

    The article focuses on the advertising agency Arnold. An increase in the agency's revenue of 23 percent in 2011 and its acquisition of new accounts in that year from clients including Dell Computer, the pharmaceutical company Sanofi-Aventis and the Boston Bruins hockey team are discussed....

  • Pepsi shops not feeling the love as marketer trims their ranks 65%. ZMUDA, NATALIE; PAREKH, RUPAL; PATEL, KUNUR; WENTZ, LAUREL // Advertising Age;2/13/2012, Vol. 83 Issue 7, p4 

    The article examines marketing management by the beverage industry firm PepsiCo. A statement by Chief Executive Officer (CEO) Indra Nooyi that the company plans to terminate its contracts with 100 advertising agencies, two-thirds of the agencies which it employs, is examined. It is noted the...

  • $700M question: Will RPA hang onto Honda? Bruell, Alexandra // Advertising Age;12/10/2012, Vol. 83 Issue 44, p6 

    The article examines the impact on the advertising agency Rubin Postaer & Associates (RPA) of the decision of its client American Honda Motor Co. to ask for requests for proposals for its advertising and media buying accounts. The possibility that RPA could suffer a business failure if it loses...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics