Coke and P&G Say “Jump”

Coca-Cola and P&G are rewriting the rules of agency compensation.
According to Ad Age, Coke disclosed its plans at the Association of National Advertisers Financial Management Conference in Phoenix last week, saying it wanted to nudge the industry into adopting value-based models as a standard practice.

Under its new model, Coke will determine the value of assignments based on a range of factors including the work’s strategic importance, the talent involved and whether other agencies could duplicate the work — if they could, it’s worth less.

Interesting. I don’t know many customers who get to tell service providers how much they’re worth. I know I’d love to dial up Comcast and reduce their fees considerably. But I digress.

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