How Agencies Are Combatting A ‘Fee Crunch’

Via Digiday

The gist: Agencies are being forced to do more with less, and Digiday explores how some have been stepping up to the plate.

More information: “We asked attendees at the Digiday Agency Summit in Phoenix, Arizona, some of the new ways they are coming up with to combat the crunch,” wrote Digiday. “From embracing value-based compensation agreements to adding newer capabilities,” Digiday explained how some agencies are staying in business.

One respondent — John Osborn, president and CEO of BBDO New York, said: “If agencies are providing ideas and campaigns that are an economic driver of a client’s business, the agencies should be fairly compensated. There should be a proportional upside in terms of incentive that the agencies should attempt to achieve. In our own relationships with clients, no contract is exactly like another. We structure these relationships uniquely based on the client. The types of services that agencies are providing are much more diverse than ever before, not only in terms of content, but also the data and the context piece. That does lend itself to looking at more diverse compensation structures.”

Three others gave their opinion to Digiday as well.

Read it all here.

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