Webinar+: Crisis clinic – Managing your agency remuneration models during and after the Covid-19 crisis
In this interactive panel and clinic, experts discuss the expected Covid-19 impact on global agency remuneration models, and how you can reasonably respond as a brand.
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The impact of Covid-19 on global agency remuneration models is yet to be fully understood, but we’re already seeing considerable evolution in that space. This interactive panel and clinic involved 2 industry experts who shared their views on the evolution of global agency remuneration models at the time of the virus.
Panellists were asked a series of questions collected from WFA members before the session:
• 7:50 - Whilst some agencies put their staff on furlough, should I expect a change on the model and level of remuneration that was initially negotiated?
• 13:22 - In the case of clients who are reducing their media budgets by say 30%; shall the media agency fee be reduced too, and if yes, by how much %?
• 18:50 - What may be the impact of media deflation on agency remuneration models?
• 23:17 - For advertisers who often use media inflation figures to plan for the future, and/or calculate their savings… how advertisers can they better pilot the reality of the inflation, depending on their profile of media consumption?
• 26:54 - eCommerce sales have increased & here we have agreed remuneration based upon net sales, agency fees are increasing significantly, with much of the sales increase being down to Covid-19, and NOT agency activities/interventions. Should we continue to pay based upon the principles/ risk/reward nature of this type of agreement?
• 31:30 - More generally, how can I evolve my performance-based model to ensure it is still relevant now and post-crisis?
• 35:15 - As a brand, which innovative ways can I use to meet my ‘new’ financial objectives without damaging relationships and health of my agencies?
• 45:08 - Is there a trend to blend hourly rates across different disciplines (digital, marcomms, PR etc)?
• 48:41 - With some projects (especially in production) now requiring more time due to new safety or sanitary measures, how can mitigate the increase of the agency time spent on delivering work and overall fee?
• 52:30 - What is the usual way to pay overtime to agencies? Is there a certain % on top to add?
• 54:56 - What about pre-payment? Should we offer more pre-payments?
Intro slides can be downloaded here.
You can also access our previous webinar on Agency Management at the time of Covid-19 here, as well our latest research on how WFA members maintained good agency relationship in China during and after the pandemic here.
Our global agency remuneration study can be found here.
Finally, a full recording of this Webinar+ can be viewed via the embedded YouTube link below.