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While Ford Motor Co. may be the first of the automakers to completely eliminate commission-based compensation deals with its agencies for the $1 billion it spends annually on advertising, its competitors say they have already achieved the increased use of alternative media Ford is seeking.
The new compensation system–which consists of labor-based fees and performance incentives–was developed to spur Ford’s agencies to take more initiative in using nontraditional marketing approaches, such as the Internet and sponsorships, said David G.
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