Are you still paying your media agency on commission? Are you getting value for your media agency fee? Is the media agency remuneration open and transparent? Do you want to incentivise your media agency to deliver higher performance or better value? The way you remunerate your media agency has a huge impact on the value you receive from your media investment.
We are able to benchmark your media agency remuneration, not just on cost, but more importantly to define the media value it delivers. We also identify ways you can improve the value of your remuneration model or show you how to use it to improve media value and performance. Value and performance based remuneration models are our specialty.
The lack of transparency in the media supply chain presents a significant challenge when it comes to media agency remuneration. Pay too little and what may look like a bargain could be the justification for the agency finding other sources of revenue from the media publishers or by arbitraging inventory. Pay too much and the buying power of your media investment is eroded. This challenge in media agency remuneration is amplified by the increased complexity in the market with more advertisers turning away from the popular cost based models back to commission which rewards the agency for increasing your spend, while others are turning away from cost based retainer models to performance models to encourage and reward increased media performance and value delivery. Choosing and implementing the right model is critical to ensuring you optimise your significant media investment.
There are a number of ways we can provide media agency remuneration solutions including:
We use a qualitative and quantitative approach to benchmarking your media agency remuneration model. An essential first step is to understand the existing cost and value within the current model, which we achieve by benchmarking the current Scope of Work. Qualitatively we need to understand the quantity and quality expectations of the advertiser and the agency, which we obtain through one-on-one interviews. Performance-based models require an additional understanding of value and performance metrics and their value to marketing and the organisation.
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