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Posts tagged with Agency Fees

Five ways agencies can fight downward pressure on fees

Last year, Unilver, one of the world's largest advertisers and a bellweather for the ever-important CPG market, spent $8.6bn on ads, an 8% jump over the prior year.

And it invested heavily in digital, upping its digital ad spend a whopping 40%.

That would normally be reason for agency execs to cheer, but you like won't hear any champagne bottles popping.

The reason? According to Unilever CFO Jean-Marc Huet, the company is working to reduce "the part of the advertising spend which is used to make films, pay agencies and the like." And it isn't where it wants to be yet.

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Agencies feel the pinch as costs rise quicker than fees

Agencies could be at risk of eating into their profit margins during 2012 as running costs increase faster than fees.

Recognising the difficulty agencies have encountered when working out how best to charge for their services, the Institute of Practitioners in Advertising (IPA) has joined forces with the Incorporated Society of British Advertisers (ISBA), Marketing Agencies Association (MAA) and Public Relations Consultants Association (PRCA) to release an updated Agency Remuneration best practice guide.

The launch coincides with research from the MAA that shows clients are paying agencies almost 20% less in fees than they were ten years ago.

4 comments