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At the beginning of this month, R3 partnered with the Association of National Advertisers (ANA) to conduct a survey to find that 61% of agency compensation deals are now based on incentive structures. Agency-incentive-compensation agreements can be a double-edged sword for marketers - but the best partnerships have demonstrated that mutually beneficial incentive-based compensation structures are possible.


Here are a few things to take into stride for coming up with fair incentive contracts:

WHO’s on board with incentivized compensation structures?

  • Typically, media agencies are on board because they are in touch with more concrete measurement metrics
  • Digital agencies, on the other hand, may be less eager to adopt such structures because of the high cost to create digital and social media compared to the cost to distribute
  • Incentive-based structures may work best for marketers selling directly to consumers online, since progress can be tracked directly through sales

HOW can marketers reach a win-win?

  • Clients must NOT view pay-for-performance as a way to cut marketing spend
  • True incentivization must be grounded in a shared-reward aspect in order to motivate agencies to go the extra mile
  • The agency and client must align on the same metrics for an incentive-based compensation agreement to be fair

Read more here.

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In our third annual China Digital Media Survey conducted in partnership with AdMaster, we reached out to over 280 digital marketing professionals from leading international and domestic brands to gain greater insight into China’s digital landscape.

Here are some of the key digital media trends and digital ROI measurement challenges facing China’s marketers in 2013:

  • Digital goes mainstream- China’s marketers will allocate as much as 24% of total marketing spend on digital in 2013- with total spending on digital marketing set to increase by an average of 38% year on year.
  • Video as the channel of choice- Marketers ranked online video, industry verticals, and micro-blogging as the three key platforms to their digital communications strategy.
  • Getting to the bottom of site traffic- 80% of marketers pointed to inflated site traffic figures as the greatest challenge to measuring the effectiveness of digital efforts.
  • Reaching the mobile tipping point- 64% of marketers see mobile as an important component in their marketing mix.
  • Training ahead of the curve- Though the majority of marketers are trained by their media agencies for digital upskilling, the need for more systematic training to establish digital as a baseline skill is a top priority for marketers.

For the complete Winning at Digital White Paper, write to greg@rthree.com.

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Recently, we further updated "The Source" C the complete guide to 500 of China's top agencies, and the best in China's marketing cases.


Click here to see more.


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R3 is a global marketing consultancy focused on improving the effectiveness and efficiency of marketers and their agencies. Founded in 2002, we work with eight of the world's top twenty global marketers.
Through our regular "AgencyScope" research ,now covering more than 1,000 marketers in China, India and other markets, we are learning about true client preferences for the best local agencies in each market and helping agency holding groups form strategic partnerships with the best local agencies.

For more information:
www.rthree.com or write to sabrina@rthree.com

 
     
     
     
 

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