Expert Marketer Magazine
Is it fair to incentivize agencies?

Excerpt form Does it Work? by Shane AtchinsonJason Burby

Goals and Accountability

In the study we commissioned from Forrester Consulting, researchers asked whether marketers thought it would be fair to incentivize agencies based on performance. The answer split geographically. “In Western markets, accountability is more qualitative than quantitative,” Forrester wrote, “and few marketers tie remuneration to market performance. Agencies are expected to deliver on project objectives, and some marketers conduct annual reviews. For some, renewing the relationship is its own measure of success. But marketers in China institute more formal contracts that link their agencies’ revenue to their own, with both upside and downside potential.” 

The reasons Western marketers gave for their reluctance were predictable. As a marketing manager at a major US retailer put it, “There’s no way to hold someone accountable in an environment that changes on a semiannual basis.” 

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"Excerpted with permission of the publisher, MCGraw-Hill Education, from Does it Work?, by Shane AtchinsonJason Burby.Copyright (c) 2015. All rights reserved."