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ANA study: Marked increase in labor-based agency compensation

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New York-More than two-thirds of major advertisers used labor-based compensation agreements with their agencies in 2000, up from 53 % in 1997, according to a new study from the Association of National Advertisers Inc. released May 9. During the same three-year period, usage of billing-based agreements, including commissions and sliding scale rates, declined from 35 % in 1997 (the last time the study was conducted) to 21 % in 2000. Also, incentive-based compensation plans are used by 35 % of agencies, up from 30 % in 1997 and 19 % in 1994. The most common incentive-based plans include achieving sales goals, conducting agency performance reviews, and meeting brand or advertising awareness goals.
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