Results on Media Agency Remuneration 2016


WFA Survey

The aim of this research is to build a picture into how multinational companies structure media planning and buying services and remunerate media agencies for offline and online media, including programmatic. 

The WFA surveyed members of the MEDIAFORUM on the subject of media agency remuneration in Q4 2015 and received 41 responses across 15 different industry sectors. Total global media spend of all respondents equates to in excess of $35bn.

  • 2015 was an unprecedented year for media reviews, but despite the flux, the media agency management picture across 40 of the worlds biggest advertisers has not changed dramatically;
  • The greatest material change versus 2013 is the decline in usage of mixed networks (-9% points), and the increase in alignment with a single agency group (+4% points);
  • Meanwhile a clear trend is shaping up towards greater adoption of global media agency contracts, now used by 64% of respondents, up from 55% in 2013;
  • Performance, value and blended fee models (with a mixture of both) are the growth areas, particularly for digital media, where we are seeing a sharp decline in commision models;
  • But the share of total remuneration represented by performance/value-based fee models has remained at around 20%, and scope exists to increase this, to influence and incentivise agency behaviour;
  • Programmatic media buying is still highly oriented towards fixed-rate commission – used by 53% of respondents;
  • Aggregate programmatic fees are also far ahead of other media at between 8% and 9% of spend, dependent on region;
  • The range in remuneration levels for programmatic far exceeds all other media, illustrating the range in approaches and servicing options available;
  • Global average remuneration levels for all media appear to be in decline vs WFA’s previous, 2013, study. 

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Research & Insights Agency