ACA RELEASES AGENCY REMUNERATION STUDY
By Adnews Staff
The Association of Canadian Advertisers has released the results of its 2002 Agency Remuneration Study. According to the study, no one model of remuneration stands as the industry's "best practice." The most effective model is the one that meets the needs of each client-agency relationship, the study concludes. The study also finds that two in five respondents used three or more agencies or divisions within agencies. Nine out of ten respondents formalized their agreements in written form. Account profitability discussions occurred in two of five agreements. "A rejection of the historical standard 15% commission on gross marketing communications spending has created an increased need for marketplace information on actual rates, and on the models that clients use as the basis of their remuneration agreements," said Susan Charles, vice-president of members services for the ACA. "We commissioned this study to answer that information need." The study was conducted on behalf of the ACA by Ipsos-NPD Group between March and July 2002. Information from 100 respondents on 226 agreements was gathered.