The study, which was presented at the ANA Financial Management Conference, found that only 10% of the 112 advertisers surveyed said they pay commissions to agencies, compared with 21% in 2000.
Seventy-four percent of advertisers pay agencies based on fixed or hourly fees, and 8% use a blended model that includes fees and commissions, according to the survey.
Performance incentives are also gaining ground as a compensation method, with 38% of advertisers using performance incentives for at least one of their agencies, up from 35% in 2000.
Also, the study found that 68% of advertisers believe incentives improve agency performance, up from 58% in 2000.
More information about the study is available at http://www.ana.net.
—Kate Maddox
