How Brands and Agencies Can Switch Compensation Models

ANA and 4A's Explain How Brands and Agencies Can Switch Compensation Models 

Fixed pricing is now the most popular method of payment

Every agency wants to be paid its worth for its services, and there are many compensation models that agencies and brands use for payment, but finding the right one that is equitable for both sides, and is easy to implement, is sometimes as clear as mud. A new paper—a collaboration between the American Association of Advertising Agencies (4A’s) and the Association of National Advertisers, called “Decoding Compensation Models & Implementing the Right Model”—aims to clear things up.

Within the paper, the two groups included a breakdown of current compensation models. Agencies reported that fixed pricing—for both agency-of-record relationships and projects—was the most popular model of compensation, followed by hourly rate fees.

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Kyle O’Brien

Kyle O’Brien was a staff reporter for Adweek and editor of AgencySpy.