MODELS, PROBLEMS AND PERSPECTIVES OF CHARGING BY MARKETING COMMUNICATIONS AGENCIES
MODELS, PROBLEMS AND PERSPECTIVES OF CHARGING BY MARKETING COMMUNICATIONS AGENCIES

Summary/Abstract: This paper deals with the practice of paying for services provided by marketing communications agencies and whether it is possible to assess the agency’s contribution to the client’s business and link these results to the payment model. The way of functioning of this market is presented, and by analyzing the genesis of the relationship-model and payment conditions, the authors locate the essence of the problem in the agency-client relationship and come to the current model that puts agencies at a disadvantage and lowers the level of service quality. The main problem is that there is no consensus and clear methodology on how to assess the contribution of an agency’s work to its client’s business results. Unlike digital services, where it is relatively easy to measure the achieved results, in traditional advertising the situation is much more complicated and more difficult to measure. That is why the authors favor the model that has started to be applied on a smaller scale lately, and that is payment by result. The topic is of theoretical importance for researchers and of practical importance for both parties in the described process – both for clients and agencies.

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