A new ANA report on media agency compensation reveals that 69% of advertisers have reworked their contracts and 46% are pushing for performance.
sounded the alarm bell for advertisers and revealed that media buying was rife with widespread illegal rebates and murky financial practices, advertisers seem to have made some strides in wresting back control and holding media agencies more accountable.
"The report confirms that there's been progress in media transparency issues with so many marketers updating their contracts," Bill Duggan, ANA's group EVP told Business Insider."But it's still surprising to see that there is still a third of makers that have not adapted their contracts, which makes me wonder what they're thinking."The 2016 ANA/K2 Intelligence report,"An Independent Study of Media Transparency in the U.S.
Most advertisers employ fee-based compensation structures for their agencies, which is typically an hourly figure determined by the number of full-time agency employees working on the brand, the scope of the business that the agency handles, and a profit margin for the agency.
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