PROCTER AND GAMBLE CHANGE AGENCY COMPENSATION
By Adnews Staff
Cincinnati-based consumer goods company Procter & Gamble is changing the way it pays its advertising agencies. The company will move to a system where its advertising agencies are paid a percentage of brand sales, as opposed to the previous system by which agencies were paid based on a straight percentage of total media spending. The new compensation system is the result of collaboration between P&G and its agencies. "Our overarching objective is to increase top line sales growth," P&G's global marketing officer Bob Wehling said. "We and our agencies are convinced that this new compensation system will keep us focused on achieving that goal." The new compensation system becomes effective July 1, 2000.
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