The 4As Plans to Step Into the Ring on Agency Compensation
October 14, 2010 § Leave a comment
It seems incredible, but the 4As is about to release its first ever position paper on agency compensation according to a report in Ad Age. It acknowledges that the issue of compensation has become “increasingly thorny” between agencies and clients with plenty of blame to go around.
There are four key principles listed in the Ad Age report, but, really, it looks like two essential concepts:
1. Sell value
2. Turn pricing into a core competency at senior levels of agency management. This is a great concept which found daylight earlier this year at TBWA when it appointed a Chief Compensation Officer.
Selling value will be the hard part. The industry is struggling with its belief system.