In a session at last week's 2009 Festival of Media in Valencia, Spain, four global CEOs discussed compensation problems. Jack Klues of Vivaki said that media agencies need to reframe the
client/agency relationship and compensation structure to an outcome-based model. At the same time, both agency and client "must make sure we have the [right] data to base such remunerations," he
said.
With longer payment terms, the agency can finance the payment or share part of it with the media owners. Both options are risky, says Maria Luisa Francoli, global CEO of MPG. If an
agency can't find a media owner willing to share, she suggests getting recognition for the risk assumption from clients in other parts of the compensation agreements. If that doesn't work out, she
says her agency offers clients a "pre-payment plan, which is the same thing as having the client pay directly."
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