WFA member benchmark on Media Agency Fee Risk & Reward Models
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It’s increasingly common for clients to structure their media agency remuneration models with a risk and/or reward component, i.e. Performance Related Fee (PRF) or Performance Related Incentive Programme (PRIP). These models incentivise agencies to meet the KPIs that are set when planning and buying media. Following a request from one of our members this benchmark aims to establish what level members set their various PRFs at (for bonus vs malus), while highlighting some key considerations when deciding on a risk and reward model.