ANA: Fees remain dominant model of agency compensation

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New York—Fees remain the dominant form of agency compensation, according to the “Trends in Agency Compensation Survey” released Monday by the Association of National Advertisers and search consultant R3:JLB. The report was based on an online survey of 98 client-side marketers conducted in the first quarter. It found that 81% of responsdents used some form of fee-based model to compensate their agency partners. Labor-based fees, used by 65%, are the leading fee-based format, up from 46% in 2010. The survey found that 61% of respondents used performance incentives, up from 46% in 2010. Also, 82% said they use a procurement team to review agency compensation, up from 56% in 2010.
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