IPA

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.