Nearly two-thirds (62%) of ad execs attending the Association of National Advertisers recent Financial Management Conference consider agency media rebates to be a “hot topic” within their organizations, according to findings of a survey conducted by consulting firm Ebiquity and its sister company FirmDecisions during the event.
Regardless of how hot a subject it is, an even higher percentage -- 85% -- of respondents said they are feeling some pressure by their organizations to decrease their agency’s compensation annually.
“The rise of cost-cutting has pushed some agencies towards more opaque compensation models,” Ebiquity said in a report on the survey findings, adding: “So navigating the nuances of agency agreements is imperative and more challenging.”
Despite the pressures, less than a third (29%) of the respondents said they felt “comfortable negotiating the complexities of agency contract issues.”The survey, which was conducted on site, is based on the viewpoints of 100 procurement, sourcing and finance professionals on behalf of some of the world’s largest advertisers. The survey design and execution was carried out by Ebiquity’s Media Intelligence practice.