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Special Report on

Advertising Agency Compensation

advertising agency compensation special research report Photo by images.businessweek.com
The premise here is simple: aligning agencies and clients around results, rather than squabbling about costs and time, which further drives the commoditization of agency services, is a win/win situation. Ad agencies are in a fight for survival. The opportunity for the brave and innovative to flourish has never been greater than right now. For those who don't/can't start thinking differently, look out for the tar pits. This post takes up on some of themes introduced in the December 5 th post, Achieving Balance in an Agency , where the value of certain agency activities and deliverables (e.g. a breakthrough idea) was ...
an audience (viewers, readers or listeners) to purchase or take some action upon products, ideals, or services. It includes the name of a product or service and how that product or service could benefit the consumer, to persuade a target market to purchase or to consume that particular brand . These brands are usually paid for or identified through sponsors and viewed via various media. Advertising can also serve to communicate an idea to a mass amount of people in an attempt to convince them to take a certain action, such as encouraging 'environmentally friendly' behaviors, and even unhealthy behaviors through food ...
REVIEWS AND OPINIONS
MediaPost Publications 'Where's The Chase, And How Do I Cut To It ...
Here is what online publishers (of any size) can do to sell more display advertising than those they compete with. First, eliminate all ad unit placements below the fold -- or keep them, but use them strictly for bonus impressions to drive down the effective CPMs of deals you are trying to close. The bottom of the page view is garbage in the eyes of those who buy your inventory, so why ask your sellers to sell it? Just dump it. Your sell-through will increase immediately for your paid impressions above the fold, where advertisers like to see their ads, and your salespeople won't spend another second defending ... market research, surveys and trends
Agency compensation and back door earning
Articles on the advertising industry usually cover new account wins, news on creative awards, people or account movements and interviews with advertising personalities. When it comes to larger industry issues, it is usually about consumer behaviour future trends, talent issue in the advertising business and so on. But one topic which in my opinion does not get talked about often enough, is the issue of agency compensation. Globally too, that maybe the case. In an article in The Economist , the boss of BBH says ‘ her industry has been “approaching and avoiding” a change in how it is paid for many years ‘. ... market research, surveys and trends

SURVEY RESULTS FOR
ADVERTISING AGENCY COMPENSATION

Advertising Agency Compensation: An Agency Theory Explanation ...
Advertising agency compensation may change dramatically in coming years as advertisers put pressure on agencies to reduce commissions and tie compensation to performance resulting from advertising campaigns. Drawing on agency theory from the economics discipline, the authors develop and test several hypotheses to address the advertising agency compensation decision. Their study provides the first comprehensive look at the prevalence of outcome-based compensation tied to performance and other compensation systems currently used among U.S. advertisers. Much has been written about advertising agency compensation and the ... industry trends, business articles and survey research
Keep your eye on the i | Publications
Marketers are increasingly obsessed with measuring the ROI of their marketing programs, but many are focusing on the "R" at the expense of the "I." It's time to take a street-level view of the efficiency of your marketing investments-not only to increase your return but also to stop spending blindly. You can chart a path from smarter marketing stewardship to better marketing ROI. Cynics will tell you that marketing is the world's second oldest profession, similar in many ways to the first, only lacking its moral integrity. But, like it or hate it, marketing is what makes the commercial world ... industry trends, business articles and survey research
RELATED NEWS
Cache Valley among locales in major child health study
Katie Nielsen talks with her two-year-old daughter Kenna at her home in Logan Friday. Katie, who is expecting a baby boy, is an interested possible participant for the National Children's Study in Cache County. Later this summer, the study staff will be recruiting women, ages 18 to 49, with child-bearing potential, for the study, which is the largest, long-term study of environmental and genetic influences on childrenÕs health ever conducted in the United States. (Alan Murray/Herald Journal) Posted: Sunday, July 11, 2010 12:00 am | Updated: 10:35 pm, Sat Jul 10, 2010. By Charles Geraci | 0 comments Attention all women ... market trends, news research and surveys resources
Laurie Burkitt covers marketing for the Forbes CMO Network
That's good news for ad agencies and the publishers who want the ad revenue. But there's one problem. Hundreds of companies stand between the people buying the ads (the marketers) and those displaying them (the publishers), all offering their services to make advertising more efficient and targeted. While these companies, including so-called demand-side platforms and  data optimizers, may be adding value to the display and banner ads consumer see, they're also grabbing money from marketers  in the process.  (A picture of the ecosystem is reminiscent of the 1990's money machine craze , only with too many ... market trends, news research and surveys resources

INFORMATION RESOURCES

Guidelines for Effective Advertiser/ Agency Compensation Agreements
Advertising agency compensation arrangements vary based on the vagaries of individual assignments and the nature of each adver- tiser-agency relationship. ... technology research, surveys study and trend statistics
Advertising, Marketing, Promotions, Public Relations, and Sales ...
College graduates with related experience, a high level of creativity, and strong communication and computer skills should have the best job opportunities. High earnings, substantial travel, and long hours, including evenings and weekends, are common. Because of the importance and high visibility of their jobs, these managers often are prime candidates for advancement to the highest ranks. Advertising, marketing, promotions, public relations, and sales managers coordinate their companies' market research, marketing strategy, sales, advertising, promotion, pricing, product development, and public relations activities. In ... technology research, surveys study and trend statistics
Should You Bring Advertising Expertise In-House? — HBS Working ...
advertising hotshot Don Draper was operating on Madison Avenue today, he would find competition coming from more than just other ad firms. A recent study by Harvard Business School professor emeritus Alvin J. Silk and colleagues finds that more companies than previously thought are developing in-house advertising capabilities, especially in technology-oriented and creative industries. Working with Silk on the study were Sharon Horsky of Bar-Ilan University and Steven C. Michael (HBS PhDBE '93) of the University of Illinois at Urbana-Champaign. The study found that almost half of U.S. advertisers large and small operated ...
REAL TIME
ADVERTISING AGENCY COMPENSATION
QUESTIONS AND ANSWERS
Advertising: account executives, business procurement ...
Hi. I have a couple of questions. Do account executives at advertising agencies do any cold calling in order to get clients? Do they work on commission? Thanks Answer Danielle, The short answer is yes and yes. Some agencies have new business teams where it is part of the AEs job description. Then there are agencies (like ours) where it is everyone's responsibility to be looking for new work, but not necessarily hunting it down or pitching the work. Then there are compensation models that pay between 1% and 5% of gross billings for the first year of business. (I have heard of models paying on profitability of the account ...
Advertising: Fee structure, agency compensation, advertising ...
I am mainly confused about the fee structure of ad agencies.  I've been reading about the history of ad agencies and of the 15% commission rate which was the industry norm.  As things evolve, is this rate basically for media agencies, and not creative?  Are creative agencies on a different fee structure? Thanks! Answer Isabella, Thank you for your question. The idea of agency commission is nearly dead - but they have been saying that for over a decade. But in principle it is gone. Media vendors do still honour the 15% discount on placement but unless you are purchasing well over a $million in media ...