BXP - June/July 2017 - 17

T H E S CENE

17

the first time in 50 years of the survey. Respon-

"extinction" at only 3% of respondents in 2010 -

dents indicated incentives do not improve agency

has climbed back to 12%. Commissions are being

performance. Structuring and managing effective

used primarily for media services, and notably for

incentive plans is complicated, time-consuming

programmatic media, which involves both human

and often ineffective.

labor and technology costs.

The latest ANA agency compensation research

Value-Based ComPensation: This newer

also revealed that as a result of the ANA's 2016

method reappeared after no reports of its use

Media Transparency initiative, brands are more

in the previous two surveys. Although only a

aware of their own agency compensation prac-

small percentage (7% employ this method), it is

tices and are reviewing them at the highest level

a further indication that marketers continue to

of their organizations. Referencing the ANA's

explore alternative approaches to traditional fees

media transparency study, respondents said the

or media commissions.

effort has had an impact on their approach to
agency compensation. They are examining and
restructuring their contract agreements as part of
their overall agency compensation practices.
The study showed that senior management
involvement in agency negotiations more than
doubled (from 33% to 73%) in 2016 from the last
survey three years ago, while involvement of
finance nearly tripled (from 15% to 45%). At the
same time, corporate senior management involvement in agency cost reviews increased from 52%
in 2013 to 79% last year. Also, half of respondents
who were aware of the report have changed their
rebate and bonus practices.
"The ANA has been urging marketers to become
increasingly involved and engaged in agency
contract and digital media supply chain management. A key way to accomplish that goal is to be
keenly aware of how media transparency issues
are minimized within the framework of the client/
agency contract," says ANA CEO Bob Liodice.
"Now, our latest compensation research indicates

The study
showed
that senior
management
involvement
in agency
negotiations
more than
doubled
(from 33% to
73%) in 2016
from the
last survey
three years
ago.

negotiation: Most advertisers (53% still negoti-

ate agency compensation annually); however, this
practice is down 19% from the previous survey.
Those who negotiate "when required" is at 40%,
up substantially from 2013 (26%).
multiPle agenCies: Marketers are compensating

a wide number of agency types (an average of
1.85 agencies each), indicating clients are choosing an agency mix to get the expertise and results
they need even when it means managing multiple
relationships.
The ANA Trends in Agency Compensation study
has been conducted every three years for nearly
the last 50 years among marketers. The current
research, which was supported by contributions
from Dave Beals, president of and CEO at JLB
+ Partners, and Demand Metric, was conducted
six months after the release of the ANA's findings on media transparency to look at how the
compensation landscape has been affected
by transparency concerns. This report covers

that marketers are taking up that challenge by

findings from an online survey conducted by the

aggressively addressing transparency concerns

ANA in December 2016 and January 2017 among

and streamlining and simplifying agency compen-

a sample of 82 member companies familiar with

sation practices."

agency compensation practices at their companies, representing more than 1,100 client and

The study also uncovered four key trends:

agency compensation agreements. The survey
respondents were marketers from what it is often

Commission-Based Payment: Driven by mar-

referred to as the "client" side of the relationship.

keters' push for simpler compensation methods,

To learn more about the study, visit the ANA's

the use of traditional media commissions-near

website at www.ana.net. 

BXPMagAzine.com


http://www.ana.net http://bxpmagazine.com

Table of Contents for the Digital Edition of BXP - June/July 2017

Bxp - June/july 2017
Contents
Editor’s Letter
The Scene
Chief Experience Officer Series: The Stride Ahead
Deeper Connections
Category Disruptor
The Debate: Disruptive Innovation , Marketing and Brand
The Toolbox: Luxury
Index of Advertisers
The List
BXP - June/July 2017 - Intro
BXP - June/July 2017 - Bxp - June/july 2017
BXP - June/July 2017 - Cover2
BXP - June/July 2017 - 1
BXP - June/July 2017 - Contents
BXP - June/July 2017 - 3
BXP - June/July 2017 - 4
BXP - June/July 2017 - 5
BXP - June/July 2017 - Editor’s Letter
BXP - June/July 2017 - 7
BXP - June/July 2017 - 8
BXP - June/July 2017 - The Scene
BXP - June/July 2017 - 10
BXP - June/July 2017 - 11
BXP - June/July 2017 - 12
BXP - June/July 2017 - 13
BXP - June/July 2017 - 14
BXP - June/July 2017 - 15
BXP - June/July 2017 - 16
BXP - June/July 2017 - 17
BXP - June/July 2017 - 18
BXP - June/July 2017 - 19
BXP - June/July 2017 - Chief Experience Officer Series: The Stride Ahead
BXP - June/July 2017 - 21
BXP - June/July 2017 - 22
BXP - June/July 2017 - 23
BXP - June/July 2017 - 24
BXP - June/July 2017 - 25
BXP - June/July 2017 - 26
BXP - June/July 2017 - 27
BXP - June/July 2017 - 28
BXP - June/July 2017 - 29
BXP - June/July 2017 - Deeper Connections
BXP - June/July 2017 - 31
BXP - June/July 2017 - 32
BXP - June/July 2017 - 33
BXP - June/July 2017 - 34
BXP - June/July 2017 - Category Disruptor
BXP - June/July 2017 - 36
BXP - June/July 2017 - 37
BXP - June/July 2017 - 38
BXP - June/July 2017 - 39
BXP - June/July 2017 - The Debate: Disruptive Innovation , Marketing and Brand
BXP - June/July 2017 - 41
BXP - June/July 2017 - The Toolbox: Luxury
BXP - June/July 2017 - 43
BXP - June/July 2017 - 44
BXP - June/July 2017 - 45
BXP - June/July 2017 - 46
BXP - June/July 2017 - Index of Advertisers
BXP - June/July 2017 - The List
BXP - June/July 2017 - Cover3
BXP - June/July 2017 - Cover4
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