The Incorporated Society of British Advertisers (ISBA) has compiled a new report on payment by results (PBR) mechanisms drawing on a decade’s worth of knowledge.
The report has been devised to help both clients and agencies reach a fair deal in contract negotiation. It comes as the recession puts increasing pressure on agencies to demonstrate the effectiveness of their campaigns and clients to make their advertising budgets work harder.
This is the second Payment by Results report commissioned by ISBA. It has been conducted by the advertising research consortium (ARC) and sets out to aid both parties to benchmark their remuneration arrangements.
More than 100 existing PBR schemes have been used to examine the elements that might combine to produce a “win-win” arrangement for clients and their agencies.
The first such report was published in 1999 and since then PBR has grown as a client-agency remuneration model. ISBA says that 56% of creative agency agreements and 60% of media buying agreements use them.
Author of the report and director of ARC Jonathan Lace says: “It will help in designing PBR schemes that are mutually beneficial – ensuring the agency is paid on performance that matters.”
ISBA recently appointed Mark Hunter, CEO of Coors, as its new president. He succeeded John Clare, former chief executive of DSG International.