The study, “15th Triennial Trends in Agency Compensation,” was based on an online survey of 75 client members of the ANA conducted during the first quarter.
It found that 75% of all compensation plans for agencies include fee-based models, while 15% of compensation plans include sales commissions, in which agencies are paid a percentage of sales for brands they manage.
The study also found that 46% of clients use performance incentives in agency compensation.
Of those marketers that spend more than $30 million annually, 70% use performance incentives with at least one of their agencies. The two most popular criteria for performance incentives were agency performance reviews (78%) and achieving sales goals (72%).