Paying for Advertising VII

Creative Agencies (2016)  

Latest research - by ARC in collaboration with ISBA - into how advertisers pay their creative agencies is based on in-depth surveys of ISBA members and other major advertisers (representing over £2 billion in advertising media spend).

The report reveals the latest trends in creative agency remuneration including:-

·        Remuneration methods including payment by results, use of project fees and paying for production

·        Rates paid for services received (including production and digital) together with hourly rates by agency job function including quartile distribution

·        Management of the agreement including involvement of procurement, auditing, review, profit margins and agency overhead rates

·        Changes since the previous edition and changes advertisers have made in the past two years.

Analysis by size of budget, length of client/agency relationship, size of agency retained, client sector and scope (both geographical and in terms of services).

Over 90 pages of analysis, summary and comment including an agency’s view by Magnus Djaba, UK CEO of Saatchi & Saatchi Fallon and many client verbatim comments on several issues.

Jonathan Lace, author of the report, said:

“In the previous edition of this triennial research there were suggestions that more creative agencies were being treated as suppliers rather than as partners – de facto a commoditisation of agencies.  In some ways that theme continues, notably with the continued decline in use of payment by results.  Thankfully that’s not the full story.  The digital explosion has transformed advertising in so many ways.  Both our remuneration reports reveal a re-coupling of services with a bigger scope of work, pay is higher and there’s barely any progress on improving transparency. Our long-standing collaboration with Debbie Morrison and ISBA has ensured a continuity of commitment to the needs of practitioners in the management of their marketing communications.”

Debbie Morrison, ISBA’s Director of Consultancy & Best Practice, said:

“This study is once again rich in insight into the commercial side of advertisers’ relationships with their creative agencies and should hopefully stimulate discussion between the parties on where we go from here as an industry.  I would like to once again thank Jonathan Lace who has been steadfast over the last 20 years in his dedication to working alongside ISBA, exploring this topic and providing empirical, impartial evidence of trends to the advertiser and agency marketplace.  This is still a unique study, one of a kind in the UK and Jonathan’s academic rigour and ability has meant we now have a near 20 year perspective on this subject.”

ISBN 978-0-9576667-4-0  Price £350.00

The report is in digital format and will be e-mailed to you with a password to access locked PDF file.  The report is Copyright and for your use only and must not be copied or circulated.  In purchasing the report you accept this condition