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Paying for Advertising IV

The very latest information on how advertisers are paying their creative and media agencies.

Paying for Advertising is the indispensable reference for everyone involved in analysing and negotiating agency remuneration.  Previous editions of the research, based on major advertisers activities and conducted on ISBA’s behalf by the academic Jonathan Lace, have been greeted by all sides of the industry as the definitive ‘state of the nation’ guide to agency remuneration.  Advertisers and agencies alike have used the report extensively to benchmark their own arrangements.  The study gives in-depth details of how advertisers are paying their agencies.  Now with tracking data going back 10 years this latest 125 page plus edition paints an up to date picture of the many developments that have taken place in remuneration practices and the way advertisers are managing their contracts.  It will surely have a catalytic effect in helping all parties achieve even more effective agreements.

Both agencies and clients should be seeking the best ways to achieve a win/win situation.  What are the benchmarks?  What are other companies doing?  Can we learn from their example?

Rigorous and comprehensive, Paying for Advertising IV continues to track all the important issues and now has broader coverage – more evidence on international agreements, more detail on PBR mechanisms, how advertisers are paying for production and the practice of conducting a financial review with both creative and media agencies.  See the attached list of questions the study answers and you will realise that this report really can give you all the benchmark data you need to make the right choices when negotiating agency remuneration.

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Agency remuneration continues to evolve not least with the demise of commission and the growth in PBR.  There is much evidence to support the view that advertisers are improving the management of their agency remuneration: conducting financial reviews, auditing the agency’s financial records and involving specialist purchasing.  The effect is that UK advertisers are typically paying their creative agencies less.”

Jonathan Lace

Author of the report & Director Advertising Research Consortium

This fourth stage tracking study gives the industry an opportunity to take a hard academic look at ten years of trend data on how advertisers remunerate their creative and media agencies.  It  is clear that  remuneration Nirvana continues to elude the industry though evidence of tighter commercial management of contracts is a welcome development over previous years’

Debbie Morrison

Director of Membership Services, ISBA

 

 

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