+ Agency only gets paid when it gets results.
The Intelligence Agency's fees are dependent on the success of the advertising and marketing campaigns it designs for clients. "This is a business that's far too fuzzy," says Luke Haase, a former Detroit-area public relations executive who moved north and started the firm in 1999. "We don't get paid for doing stuff. We get paid for results."It's definitely a different idea, although I'm not sure that it's one that will catch on. But who knows.
Haase's firm appears to thrive during a gut-wrenching time for advertising agencies. Clients are becoming increasingly fed up with costly advertising campaigns that fail to boost revenues. They want to see tangible results. This drive for accountability is giving many big ad agencies major heartburn. Agencies have had to cut their prized 15 percent commissions and lay off thousands of workers.
While ad agencies may not have fully adopted pay-for-performance plans, they're sharing more financial risks with their clients, Vanden Bergh says.
No comments :
Post a Comment