Coke Moves To Pay-For-Performance: Won't Comment On Savings
As if the advertising world wasn’t cutthroat enough: Coca Cola Co. wants to push the advertising industry into a “value based” compensation model like one it’s been testing that pays agencies nothing more than recouped costs if their ads don’t hold up, AdAge reports. Work that hits “top targets” could garner profit margins of up to 30%.
“We want our agencies to earn their profitability, but it’s not guaranteed,” Sarah Armstrong, Coke’s director of worldwide media and communication operations, told AdAge.
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