2024 Compensation Methodologies

In Q1 2024, 4As members participated in a Compensation Methodology study. 4As members were surveyed on the eight most common in-use agency compensation models on project-based and AOR/Retainer-based engagements. The goal was to understand the most prevalent compensation methodologies across various agency types and sizes within the advertising industry.

Paired with the 4As/ANA guide , ‘Decoding Compensation Models & Implementing the Right Model,’ these findings offer insights into the current compensation landscape and serve as a useful tool for industry leaders, aiding in strategic decisions and enabling agencies to optimize their compensation methodologies in-line with industry trends.

The survey questions were divided in two categories: Project-based and AOR/retainer-based client arrangements. Additionally, the survey included four agency size groupings and applicable primary services categories.

One hundred and forty-nine member agencies participated which included both independent and network agencies.

Information Reported in the Study:

• Percentage of project-based versus AOR/retainer-based client arrangements.
• Percentages of eight common compensation methodologies reported for each arrangement.
• Reconciliation requirements for each reported arrangement, applicable to Cost-Plus, Hourly Rate, or Media Commission methodologies reported.
• Detailed respondents’ verbatims on “Hybrid” compensation models.

 

*Members who participated will receive a complimentary copy.

If you have any questions, require further information, or would like to verify whether your agency participated in the study, please contact Helen Miranda ([email protected]) or Sal Conte ([email protected]).

 

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