ACA REPORT ON AGENCY REMUNERATION
By Adnews Staff
The 1999 Agency Remuneration Study: How Advertisers in Canada Remunerate their Agencies, has been completed and the finding released. The study, conducted by Ernst & Young Management Consultants for the Association of Canadian Advertisers, reports that the days of the 15 per cent commission paid advertising agencies are gone. In the study, responding advertisers indicated that only 5 per cent use a flat 15 per cent commission and one quarter stated they use some percentage variation on commission. Other findings of the study include: the use of written agreements in Canada is nearing U.S. and U.K. levels, the use of separate media planning and buying agencies has risen and the practice of using a single agency is declining. The objectives of the study are to determine current practice in agency remuneration in Canada and to determine trends in agency remuneration in Canada. The next Remuneration Study is scheduled for 2001.