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In this issue

What is value based remuneration for advertising and media agencies? Value based agency remuneration considerations for direct response and retail advertisers What is the best agency remuneration model for every advertiser? Three ways to pay for programmatic media but only one that delivers value How Value Based Remuneration can support Zero Based Budgeting
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Newsletter 22 February 2017

Welcome to the 22 February edition of TrinityP3's e-news


What is value based remuneration for advertising and media agencies?

There’s a lot of talk about Value Based Remuneration and possibly a lot of confusion as various models get bandied around purporting to be value based. There are several approaches to this remuneration methodology, but the basic principles for defining value is either the value of the work done for the buyer (output) or the value of results delivered (outcome) or any combination of these. How is this applied to advertising and media agencies?

Read more on this topic here.

Value based agency remuneration considerations for direct response and retail advertisers

When developing a value based remuneration model for your agencies it is important to consider what approach to value you take. If you measure performance of your advertising directly such as in direct response and some retailers, then a results approach to agency remuneration is ideal. This allows you to pay the agency based on their contribution to the value created. This is especially relevant where marketing is performance measured.

Read more on this topic here.

What is the best agency remuneration model for every advertiser?

As marketers are moving away from agency retainer to more agile and flexible remuneration models, there is a desire to find the right model for their needs. But there are also more models and variations on theme for remuneration than there are agencies. So, what is the best value agency remuneration model for you? That depends on a few key criteria and your current circumstances.

Read more on this topic here.

Three ways to pay for programmatic media but only one that delivers value

There is much talk about the efficacy and value of programmatic buying. While programmatic media buying is ideal for driving results, when it comes to how you pay for your programmatic media it could be that the best approach is a value based model that pays for results and not simply eyeballs. In this way, you overcome issues of viewability and fraud because you are paying for the results achieved and not just the audience.

Read more on this topic here.

How Value Based Remuneration can support Zero Based Budgeting

Many of the global consumer goods companies have embraced Zero Based Budgeting (ZBB) for their marketing programs to better align performance and growth with the marketing investment. Value Based Remuneration that sets a price of value for the work that the agency delivers can support the ZBB process by making the agency costs more defined and predictable against the projected return on the investment.

You can read more about this topic here.

How to develop a price based remuneration model for your agencies

How do you go about defining the value of the outputs your agency creates for you? Up to now, the only value equation has been the cost of the agency inputs, which is a good starting point in then defining the value of the outputs based on the projected return, and the strategic importance of the work. It is a process that calls into question the value of the work of the agency, for both parties; the advertiser and the agency themselves.

Read more about this topic here.

The latest trends in agency remuneration

Wondering how Value Based Remuneration fits into the latest thinking in agency remuneration? As remuneration experts, we are constantly keeping track of the trends in agency remuneration and can see that Value Based and Results Based Remuneration is gaining in popularity but also relevance, as more advertisers are focusing on the performance of their marketing plan in driving company growth.

Read more about this topic here.

What's Hot

Here are the most read, most shared and most commented on articles from the TrinityP3 blog in the past month:
  1. 9 incredible ideas that became a reality in 2016
  2. Is the problem with data the fact that many marketers misuse it?
  3. Managing Marketing: Media value, transparency and relationships today
  4. How to transform your agency relationships
  5. Agency search and selection for global health client – case study
  6. Corrupt and illegal advertising production practices in advertising agencies?
  7. Is the Year of the Rooster an opportunity to address a few major issues for advertisers?
  8. How does TrinityP3 rate as Management Consultants against these 7 critical qualities?
  9. If you think it’s expensive to hire a professional marketing management consultant to do the job, wait until you hire an amateur
  10. Media transparency the biggest challenge last year and next

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