As Agencies and Brands Define the Value of Their Work, Compensation Models Merit Closer Scrutiny

If a brand pays an agency for working on its ad campaign without the agency feeling undervalued or the brand feeling ripped off, congratulations: You’ve mastered agency compensation.

The Association of National Advertisers (ANA) recently released its Trends in Agency Compensation survey of advertising industry professionals and found there’s still some question of how to pay agencies in a way that satisfies everyone. According to the survey, roughly 82% of the industry still uses labor-based fees and timesheets when paying agency partners.

“It says a lot about the difference between seeing an agency as a partner and an extension of the brand,” Elaine Purcell, Chief Growth Officer, DDB North America added. “That’s ultimately where we’ve seen our greatest successes, where we are joined at the hip. And, truly, their success is our success and they are interchangeable.”