Compensation Divide: Agencies Prefer Fees, Clients Like Incentives



Agencies and their clients are far apart in terms of what they deem to be the most fair method of compensation, according to findings of a survey of advertiser and agency execs conducted recently by Advertiser Perceptions for MediaPost.

While labor-based fees are the No. 1 method preferred by agencies (45%), incentive methods were the top choice among marketers (40%).

Interestingly, after years of erosion, fixed media commissions are once again becoming a popular method of agency compensation, and were cited as the fairest method by about a third of agencies (36%) and clients (34%).

The survey was conducted following the release of a member survey by the Association of National Advertisers, which also found that commissions are making a comeback among its members.

The Advertiser Perceptions findings are based on a survey of 310 ad executives -- 60% agency, 40% marketer -- conducted in June.

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