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Stop Paying Agencies for the Wrong Things
By: The Drum
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As I read the ANA commissioned reports on transparency and rebates in our business, I was floored. Not floored at the findings but floored that anyone is surprised at the findings. I’m also floored that brands (and agencies) seem to be lost as to how to solve the problem. To me, the causes and the solutions are pretty straight-forward.

Let me lay it out for you:

First, brands are under budget pressures every year. They are expected to deliver increasingly better results for decreasing less money year over year. That means a brands’ partners are under similar budget and performance pressures.

Second, and this shouldn’t be a shocker. Agencies are businesses too. Whether part of a holding company, closely held or partnership, agencies are in business to make not just revenue but profit. They also have similar revenue goals every year that are derived through a combination of organic/existing client growth and new business revenue sources.

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About the Author
This article was published by The Drum. A link to the original appears at the end of this post. www.thedrum.com
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