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Agency Compensation An Issue In Snickers Video Campaign

The issue of how an advertising agency gets paid by the marketer that hires it is in the news again. This time, there's deal ad agency BBDO wants to cut with client Mars for a new online promotional effort for Snickers candy bars. The campaign consists of a series of video vignettes featuring the rock group Black Eyed Peas, whose members play the role of a group of superheroes in the videos. Snickers and the Black Eyed Peas hope to use the series to generate revenue on top of the promotional benefits--from the sale of music, clothing and possibly other merchandise. But BBDO also wants a share of any extra revenue generated by the series in addition to its regular fee for creating the campaign. The idea of giving an ad agency an equity stake in an ad project, or a revenue share in a product being marketed, is not entirely new, but not many agencies try it. Recently, however, prominent ad agency Crispin Porter + Bogusky took a minor equity position in Haggar Clothing Co. The BBDO project "may have legs of its own," says Vic Walia, Snickers' senior marketing manager, who adds that a range of licensed material is being considered depending on how well the video project resonates with consumers.



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