Coca-Cola Co. is pushing a performance-based compensation model for ad agencies and wants other companies to do the same.
The company plans to move away from a flat-fee that equates hours spent with value delivered to a "value-based" compensation model with profit margins as high as 30% if top targets are reached.
The only problem with performance-based compensation is that marketing campaigns are only as good as the clients who direct them. If this trend continues, will we see agencies being pickier in selecting not only the brands they work on, but the marketers they report to as well?
Source: Advertising Age
