Summary
There is a step change coming within the industry! The new wave of advertisers are demanding more from their agency compensation models. In fact, ‘56% say they anticipate deliverable or output-based fees will increase over the next three years. Yet, such a model remains in its relative infancy within media, with just 9% of advertisers currently using it’.
Redefine perspective
Advertisers know their remuneration model is not driving the right behaviours and, with two thirds of clients still paying on a commission model, we know why…
However, what’s reassuring is there is an “an overwhelming appetite to change” this from clients. But two major sticking points remain at an industry level:
- Trust in your current agency’s remuneration and trading practices as a base to evolve from (which is why we knew Redefine needed to be built from the ground up)
- The need to bring procurement on the journey ensuring they are confident in buying services this way
…hold my drink.