ISBA receives many enquiries from advertisers seeking guidance on the development of agency remuneration models.
It seems everyone is searching for remuneration Nirvana: that perfect balance of cost-effectiveness and fairness – a solution which is motivational enough to inspire business-transforming solutions and to encourage the growth of the advertiser and agency businesses and all this built on a perfectly transparent platform.
Much has changed in terms of remuneration practices over the last decade from the relatively simple days of commission, where virtually no negotiations took place on price, to the more complicated fee-based arrangements of today, which now constitute the majority of payment arrangements. We live in times where everything is negotiated. Many companies are also handing over responsibility for agency negotiations to the professional procurement teams within their organisations. These specialist commercial teams tend to be more analytical and make greater demands on agencies to justify remuneration proposals and practices. Whilst they may demand greater transparency, they are also more likely to understand the agency and its needs as a business, not just its needs as a communications specialist. At the end of the day, advertisers and agencies want the same thing: profitable growth in their businesses.
ISBA is continuously monitoring trends and developing our thoughts on remuneration practices and we work with both advertisers and agencies to help create more effective remuneration models into the future. This section covers all of the relevant guidance, news and updates to help you in your search for the most relevant remuneration solution.
If you are interested in talking remuneration trends or benchmarking your own arrangements get in touch with us for a confidential chat.
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