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Commissions Are Out, Media Audits In

ANA Release: ANA 2004 Agency Compensation Survey Reveals Continued Client Gravitation Toward Fee-Based and Performance Incentive Models

A study from the Association of National Advertisers showed that commission-based compensation is just about eradicated from the industry, with only about one in ten big advertisers paying their ad agency in this fashion (probably because it's cheaper that way). Performance bonuses in compensation are increasingly popular, with about two in five companies writing that into their contracts.

More and more, media and other specialties are being pieced out to specialist firms. More advertisers reported using a separate media agency than reported using an all-in-one shop. Those media account holders are being kept on their toes, though, with about two in five advertisers conducting regular media audits.

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