Agency Recognitions And Rumuneration

1. AGENCY RECOGNITION AND
REMUNERATION
CHAPTER 9

2. WHAT DOES RECOGNITION
MEANS?
• Besides being recognized
for its quality of work, the
most important is
recognition by the media,
because media relations is
very important for an
agency work effectiveness

3. RECOGNITION BY THE MEDIA
• The agency is recognized
as having substantial
financial strengths to carry
out its commitment to the
media.
• Therefore the media is
assured that the agency
can pay the media on the
time agreed.

4. CRITERIA FOR RECOGNITION
• Member of recognized
associations such as PPPI,
IAA
• Client list
• Achievement awards
• Media bonus and media
credit

5. CLASS DISCUSSION
What agency’s services does
the client pay for?
• -
• -
• -

6. AGENCY’S INCOME
THE AGENCY COMMISSION
• Is calculated % based on gross
above the line expenditure
• % range from 10% - 20%
• The fee covers agency costs
for:
– Agency man hour for consulting
for clients
– Media data
– Media planning and buying

7. AGENCY FEE ( for creative
development)
• is calculated based on the
man hour approximately
required by the agency
creative team to develop
a concept
• The cost per hour is based
on the perceived image of
the agency and therefore
the skills and experience of
the creative team

8. MARK UPS ( for
handling/supervising production)
• For supervising production
such as production of TVC,
carried out by the assigned
production house agency
can mark up the costs
submitted by the PH.
• Mark ups usually around
10%-20% of the cost
submitted by the PH

9. QUESTIONS
• Why is there 3 types of
remuneration for the
agency?
• Which of the remuneration
provide most income for
the agency and why?
• How does the agency get
paid for below the line
service?

10. QUESTIONS
• Why is there 3 types of
remuneration for the
agency?
• Which of the remuneration
provide most income for
the agency and why?
• How does the agency get
paid for below the line
service?