Paying for Advertising VII

Media Agencies (2016)  

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

The latest trends in media agency remuneration (buying, planning & strategy) including:-

·        Sourcing of types of media from agencies and media bought directly

·        Remuneration methods incl. use of fees and commission, payment by results and project fees

·        Rates paid for services received (including SEO and paid Social) together with hourly rates by agency job function

·        Management of the agreement including involvement of procurement and auditing

·        Use of agency trading desks and demand side platforms

·        Client views on agency transparency

·        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 85 pages of analysis, summary and comment including an agency’s view by Paul Frampton, Group CEO Havas Media group 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.”

Mark Finney, ISBA’s Director of Media and Advertising, said:

“The issues surrounding financial transparency and media neutrality are growing in prominence today.  Increasingly, the fear of advertisers (whether real or imagined) is that media agencies are planning and buying media which are more favourable to them (because of higher fees, better margins, and even kickbacks).  This fear is exacerbated by the incredible complexity of the programmatic ecosystem and the emergence of new programmatic business models. The findings of this latest PFA survey suggest that more openness and transparency on the part of media agencies, and stronger governance and goal-setting of agencies by clients all help to improve trust and the quality of the relationship overall.”

ISBN 978-0-9576667-5-7  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