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Agency Compensation

Agency Compensation

One of the greatest sources of tension between Marketers and agencies is fee negotiation.

Typical compensation challenges faced by our Clients include:
Are the rates for our agency teams competitive?

Are the rates for our agency teams competitive?

What’s an appropriate cost for the Scope of Work and what agency resources are needed to deliver it?

What’s an appropriate cost for the Scope of Work and what agency resources are needed to deliver it?

How can I compare rates for key agency roles across regions and agency types?

How can I compare rates for key agency roles across regions and agency types?

Working with both Marketing and Procurement professionals the Observatory International's advisors are specialists at mediating these situations – setting the terms of engagement, providing relevant benchmarks, and moving all parties towards a result that gets the relationship working effectively.

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The Observatory International’s Agency Compensation Capability & Unique Tools

Extensive experience in supporting our Clients around the world with agency compensation mechanisms for:

Search icon Search and Selection
Menu icon Menu pricing
Benchmarking icon Ad-hoc benchmarking and roster reviews
Pbr icon Payment-By-Result (PBR) frameworks
Our Global Agency Rates Database™ (GARD) comprises over 50,000 data records across multiple agency roles and agency types.

Our Client-facing business model – we take no fees from agencies - ensures we are objective and impartial, with no conflict of interest when reviewing and analysing fees.

Our negotiating capability often amortises our consulting fee.

Recent remuneration publications produced with our partners at the WFA and ISBA in the UK

We are the optimisation partner for the World Federation of Advertisers (WFA). In collaboration with the WFA we have produced multiple thought leadership pieces in the areas of Agency Models, Agency Relationship Management and Agency Compensation

2022 ISBA Agency Remuneration Survey
WFA Global Agency Remuneration 2018

The Observatory International’s Global Agency Rates Database

1
Provides robust, current and accurate staffing cost benchmarks
2
Identifies opportunities to improve efficiencies by benchmarking current costs and optimising agencies' staffing proposals
3
Provides rates benchmarked by geography, function, size and agency discipline

Who have we helped?

Further reading

UK Agency Remuneration Report 2022 July 27, 2022

UK Agency Remuneration Report 2022

Three Relationships Every Marketer Needs to Strengthen September 17, 2020

Three Relationships Every Marketer Needs to Strengthen

Righteous Remuneration May 14, 2020

Righteous Remuneration

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