ANA survey finds fees remain chief method of agency payment

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New York—Fees continue to be the dominant payment method for advertising agencies, according to a new survey by the Association of National Advertisers.

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%).

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