How Much Is Your Advertising Agency Worth To You?

Abstract

The subject of advertising remuneration has always been a controversial subject despite the advertising industry coexisting with other industries for over a century. Both clients and agencies have different views on the subject depending on their objectives. Business needs however, have compelled both, to call a truce to these altercations, since both cannot exist without the other, especially the agencies. This paper examines the various options of remuneration prevalent in the industry, how these have evolved as time has elapsed and how clients and agencies have adapted to it over time. It critically examines the motivations and conflicts arising in the evolvement of a suitable remuneration system and the means of resolution available to both parties for amicable settlement.