Commentary

Brands Want Performance, Not Head Count

It used to be enough to charge a hefty retainer, citing how many people you have working for a client, sitting behind desks and circled round for meetings on beanbags in breakout areas.

Now, however, research suggests that four in five clients see the move to performance-based renumeration as inevitable. …

3 comments about "Brands Want Performance, Not Head Count".
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  1. Ed Papazian from Media Dynamics Inc, January 31, 2019 at 12:59 p.m.

    I wonder what percentage of these new contracts which, in effect, make the agency the client's "partner" will grant the ageny a share of the client's profits in the event of a successful ad or marketing campaign?

  2. dorothy higgins from Mediabrands WW, February 1, 2019 at 9:37 a.m.

    Guess what...the agency still has to figure out exactly how many whos at what levels of expertise in which disciplines are necessary to drive that performance and derive the cost plus margin accordingly. So, may I say as nice,y as possible, whatever. 

  3. Ed Papazian from Media Dynamics Inc, February 1, 2019 at 11 a.m.

    In my experience the client not only approves all of the key decisions or recommendations made by the agency in its behalf and, in many cases, simply  directs the agency to do what it wants done. So why not take the responsibility instead of pretending that the agency---which has no control over the quality of the product/service, its distribution, pricing, etc. ---must be paid on a "performance" basis---meaning, no doubt, sales, not just professionally executed creative and media planning/buying work.

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About the Author

Sean Hargrave is MediaPost's London Editor. You can reach him at seanhargrave@btinternet.com.

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