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Agency Compensation

Agency Remuneration: Project-Based vs. Retainer

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CashIdentifying the right methodology and optimal rate at which to compensate advertising agencies has been an ongoing quest for advertisers. With the shift to project-based versus retained relationships this, driven in part by a desire for greater flexibility and responsiveness this challenge has intensified. As always, the question remains; “What rate can advertisers expect to pay under different agency remuneration models? Does a greater commitment lead to more efficient rates?” The following article from Leah Montebello of Producers & Procurers iQ presents an excellent framework for fairly evaluating this scenario. Read more…