Remuneration Benchmarking   Custom One  

“I’d like to know that I’m getting a competitive deal at my agencies, and to justify that internally.”

“What should we be doing to manage the agreement successfully?”

How much to pay for agency services is a prime consideration especially when budgets are tight.  Equally important are how the remuneration agreement is structured and the management practices that are employed to ensure efficiency, accountability and transparency.

You will probably already be using external consultants to assess the value of your expenditure – media auditors, compliance auditors or production cost consultants to name but a few.  Up to now though there hasn’t been a service for agency remuneration - rates and practices - that’s based on reliable empirical evidence, that’s custom tailored to you and does not cost an arm and a leg.

The ARC/ISBA Paying for Advertising reports and the equivalent surveys in major markets are widely recognised as the definitive source for agency remuneration data, trends analysis and advice.   

Whilst our reports provide detailed data that is useful in a number of ways they can never provide custom data that matches your circumstances or custom advice on what changes could be beneficial to you. 

That’s why ARC is pleased to announce a new service to marketers and procurement professionals.   The new service – Custom One - will enable you to benchmark your creative and media agency remuneration agreements with greater relevance to your specific circumstances than ever before.

That’s because ARC's unique database enables benchmarking by scope of agreement, sector, size of expenditure, size of agency retained or length of client/agency relationship.

The custom report will identify how your current or proposed agreement essentially ‘stacks up’ against others on a wide variety of metrics (equivalent net rates paid, hourly charge out rates, agency profit paid etc.).  It compares the practices and methods that you employ against your chosen benchmark set.

By comparing your attitudes to your agreement the custom report also identifies how to make improvements to achieve greater satisfaction.   The report will in any case provide empirical evidence to help defend your position when bidding for budgets.

Overall Custom One provides a simple actionable report identifying opportunities to improve your remuneration agreements.  It will be an essential first step that defines where the opportunities lie.  You can then determine the best strategy and method of implementation that achieves the goals.

Because it is based on ARC data you can be sure that Custom One is independent, academically rigorous and entirely confidential.   ARC remuneration data is second to none in terms of scope, coverage and detail.

So what is benchmarked?

Key Financials, including net rate paid for services received, rate paid for production or at net cost, blended hourly rate and/or rates by agency function and agency profit margin.

Remuneration Agreement, including inclusion of PBR, type of fee employed, minimum income guarantee employed, maximum limit to agency earnings employed.

Design performance criteria, including adaptability, incentive and simplicity.

Remuneration management, including financial review (& frequency), auditing (& frequency), involvement of procurement, ability to re-negotiate and reconcile.

Satisfaction & Attitudes, including overall satisfaction with the agreement, trust and transparency.

The scope of country coverage is the UK, Germany, France, Portugal and Japan, together with global and pan-European remuneration agreements.

To try Custom One for yourself simply get in touch  - e-mail jonathan@advertising-research.com

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