Posts tagged with 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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Digital agency rates set to rise, according to Econsultancy research

Econsultancy has just released the latest version of its Digital Agency Rate Card Survey, which benchmarks average charge out rates for more than 50 different job roles.

The Rate Card Survey is produced on a triennial basis and this year 364 agencies participated in the research. 

Average rates range from £465 a day for a junior media planner to £891 a day for a director / partner, though fees increase if an agency is based in London, and also rise in line with turnover.

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Digital agencies winning more retainers: report

When it comes to how agencies are compensated, digital shops haven't always been treated like traditional shops. Retainers and performance incentives? Maybe, but project fees have been far more common.

That may be changing according to a study conducted by the Association of National Advertisers (ANA), which found that the number of digital agencies being compensated with a combination of  project fees and retainers jumped to two-thirds last year, up from just 37% in 2009.

Also on the increase: performance bonuses. Nearly quarter of those surveyed changed these last year, and nearly 30% plan to do this year.

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Is eBay's auction business stagnating?

Yesterday, eBay reported its Q3 2010 earnings.

The good news for investors: PayPal is going strong, with net revenue up 23% year-over-year. The bad news for investors: auction revenue has all but stalled, increasing just three percent year-over-year.

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Google gives up on Google Checkout

The last 6 months have been sobering for Google. Once at the top of the world, Google has seen its share price plummet and the idea that it would be immune to recession has been proven a fallacy.

So Google is doing what any good company does: cutting out the fat. It has already shuttered a number of projects that weren't going anywhere and is refocusing its efforts on its core business.

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