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PROCTOR & GAMBLE CHANGES AGENCY COMPENSATION

Proctor & Gamble Co. introduced a new compensation practice with agencies around the world last month. Under the new guidelines, the cost of ad research, with the exception of focus groups that gain insight for creative work, will be borne 100% by P&G. Previously, agencies paid most of the cost. The new practice has been in effect since July 1. Canadian P&G spokesperson Rob Fitchner attributed the change to the company's desire to simplify the process. He added that despite the increase in cost, P&G will break even financially.

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