Scottsdale, Ariz.—Advertisers continue to move away from commissions to hourly fees and incentive-based payment, according to the Agency Compensation Survey released Wednesday by the Association of National Advertisers.
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
