We need to know how much advertising agencies and consultants in the
U.S. charge for creative fees (conceptualization only, not actual
production like photography, artowrk, editing cost etc.) for the
following projects:
1. Single Print Ad
2. Multiple ad campaign
3. Television script/storyboard
4. Direct Mail
5. Web design
6. Radio spot/script
We want specific rates for each of the above projects from credible
entities (e.g. large ad agencies, well-known adveritising consultants,
large design shops etc.) that can be used as an acceptable benchmark
for the U.S. advertising industry.
We are a newly established ad agency and seek to arrive at our own
pricing structure and rate card based on industry averages/benchmarks.
We need dollar amounts and NOT percentage commissions. |
Request for Question Clarification by
nancylynn-ga
on
19 Dec 2004 14:42 PST
Hello ddb69-ga:
Could you please define what you mean by ?large,? either in total
billings per year, or number of clients, etc.?
I can?t find the information you need online in terms of studies of
industry averages. If I call agencies re: their rates, I doubt they?d
divulge that information as I?d be posting it at this very public Web
site!
So I?m going to call some advertising associations tomorrow to see if
there are any studies with the breakdowns you need.
If there is such a study, you'd likely have to order it for a fee. Or,
you may be able to access that sort of information by joining a
professional association.
If either scenario proves to be the case, would that be an acceptable answer?
Best regards,
nancylynn-ga
Google Answers Researcher
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Clarification of Question by
ddb69-ga
on
20 Dec 2004 09:51 PST
By 'large' I mean reputable agencies like JWT, Ogilvy, DDB, BBDO,
Fallon, Grey, McCann etc. However, if we can get the rates of
relatively smaller agencies that'll be fine too provided the handle
major clients (well-known, high profile brands).
I don't think there is any such study actually. But if there is then
that would be great. And yes, if you can let us know the source for
such a study, then it will be considered as an answer. But only if the
study answers my question specifically.
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Request for Question Clarification by
nancylynn-ga
on
20 Dec 2004 16:52 PST
Just to update you:
I spoke to the Advertising Research Foundation (ARF):
http://www.arfsite.org/
They're not sure agencies have price lists quite like the one outlined
in your question, as there are so many variables, such as "is the
print ad color or B&W, how much copy is there? What about media
placement, etc. All would work against having any sort of fixed price
rather than based on the labor involved to achieve the desired
results."
I've e-mailed some advertising associations, including one recommended
to me by the ARF, and some magazines whose research departments
publish reports that may contain the information you need. Some of
these research departments can even create tailored industry research
reports to meet clients' precise parameters.
I hope to hear back from these organizations within the next few days
and, after ascertaining that they can provide the information you
need, will post an answer when I have as many options for you as
possible.
If I wind up hitting dead-ends, I'll let you know ASAP and release
this question so that one my colleagues can take a crack at it.
nancylynn-ga
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Clarification of Question by
ddb69-ga
on
20 Dec 2004 19:34 PST
sounds good...however, cost of conceptualization has nothing to do
with media or length of copy...it is a flat fee.
|
Request for Question Clarification by
nancylynn-ga
on
22 Dec 2004 13:54 PST
So far, I?m not too optimistic that I?m going to be able to find just
the data you want -- or that such data even exists. To bring you up to
date on what I?ve learned:
The Advertising Research Foundation:
http://www.arfsite.org/
Recommended that I contact the American Association of Advertising
Agencies (the AAAA):
http://www.aaaa.org/eweb/startpage.aspx
The AAAA does have a Research Services division:
http://www.aaaa.org/eweb/DynamicPage.aspx?WebCode=Research
Once you become a member, they may be able to advise you on fee structuring.
Thomas Finneran, Executive Vice President of the AAAA, invites you to
contact the AAAA membership department at 212-682-2500. He noted that
you ?would likely derive a host of benefits by joining the AAAA,
though ?specific information . . . on ?Standard Rates? is not
generally found in public or industry surveys.?
Todd Kaiser, Senior Vice President at Synovate:
http://www.synovate.com/en/index.php
Suggested ?The only suggestion I can make is to contact the
marketing/brand managers of some major package goods companies. They
are the buyers of these services and would be most familiar with the
rate structure.?
(If *I* were to call managers, I doubt they would divulge such
proprietary information to me since I?d be posting it at this site!
But you may want to try contacting some and see if they?ll share some
info with you.)
I talked to Mintel/Compremedia:
http://www.mintel.com
http://www.comperemedia.com/sinatra/compere/frameset/overview_menu/null/home/display
Mintel was extremely helpful, but they don?t have any research reports
that meet your needs, and reiterated what I heard from others: too
many variables for there to be any sort of standardized rates.
I also asked them if they had any research reports surveying what
brand managers typically spend for the projects you listed, but again,
there are many variables, and so an agency likely wouldn?t charge the
same fee from all packaged goods companies.
Advertising Age?s Ad Age site:
Has a DataCenter:
http://www.adage.com/datacenter.cms
I called the DataCenter and they don?t believe the types of figures
you?re seeking exist. They?re also not sure that there is any research
re: what brand managers generally pay advertising agencies.
For instance, even if you were able to look at an ad agency?s
marketing budget, everything would be lumped together ? you wouldn?t
see the breakdowns you need. Also, while there used to be a standard
percentage fee for these types of projects; that those kinds of fees
involve a myriad of negotiations; there aren?t really set fees.
That buttresses what I?m seeing: creative fees being negotiated,
rather than a fixed rate structure.
The DataCenter also noted to me that Proctor & Gamble tried a
pay-for-performance compensation method a few years ago, but it didn?t
really work out or catch on.
The DataCenter suggested I check out AdForum.com:
http://www.adforum.com/
U.S. site:
http://www.adforum.com/english/USA/index.asp
And see:
http://www.adforum.com/preview/subscriber/search.asp?f=Google_APonAdF1
If you register there, or subscribe to AdFolio, you can access the
forums where you?ll encounter review consultants, etc. The purpose of
the forum is to bring people in the advertising world together. You
may meet up with some consultants or brand managers, or others, who
can help you. (I can?t join to look around, as I?m not an advertising
professional, but Ad Age?s DataCenter recommended this as a good
resource with a solid reputation.)
I also contacted the UK-based firm WARC (World Advertising Research Center):
http://www.warc.com/
And while they don?t have the information you need, they did refer me
to ARC (the Advertising Research Consortium/ISBA), which publishes
reports on "Paying for Advertising" in various markets.
ARC:
http://www.advertising-research.com/
ARC is closed for the holidays, but its Director, Professor Jonathan
M. Lace, was kind enough to send me a reply:
?ARC does not have a report on the US market. The Association of
National Advertisers (clients) and the AAAA (agencies) have reports on
agency remuneration. However I don't think the reports answer what
you need to know! In Paying for Advertising III (UK) we have
published hourly rates (inclusive of agency overhead and profit)
charged to clients for key agency job functions. Knowing 'Standard
conceptualization fees for a multiple ad campaign' is not very useful
as this will not reflect the nature of the task
(e.g. whether a new brand or revised updated campaign for existing brand) or
the time required or the seniority of the people [etc.].?
I have talked to some market research firms, but the ones I?ve spoken
to are unable to research the sort of data you need.
I do still have some inquiries out to other market research firms. I
just don?t know how likely I am to hear back from them this, or next,
week, given the usual holiday madness.
Obviously, anyone who doesn?t get back to me by Thursday afternoon
isn?t going to reply until next week!
If none of those firms can help, the only thing I can suggest is you
sign up at AdForum.com:
http://www.adforum.com/
and try to hook up with a consultant there.
I'm very sorry that I couldn?t be of more help.
Again, if I do hear back from anyone who has such data, or who can
custom-tailor such a report for you, I?ll post that information. But
for now, I?m afraid I?m rather pessimistic about this.
Note to my colleagues: if any of you feel you can be of help, please
feel free to take on this question.
Best Regards,
nancylynn-ga
Google Answers Researcher
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Request for Question Clarification by
nancylynn-ga
on
23 Dec 2004 07:02 PST
That's very nice of you, and thank you, but we researchers are not
allowed to work with clients we meet via Google Answers outside of
Google Answers.
Just so you know: your name and contact information will soon
disappear, as GA deletes all such information.
Good luck with Adforum -- and your agency! Don't hesitate to post
another question here if you feel GA can be of help.
Happy Holidays,
nancylynn-ga
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Request for Question Clarification by
nancylynn-ga
on
04 Jan 2005 12:00 PST
Hi:
I'm just letting you know that I just today heard back from Simon
Tesler of Adbrands.Net:
http://www.adbrands.net
which provides detailed reports on advertisers and the industry.
While Adbrands "doesn't carry the detailed fee information you are
looking for [you] might wish to contact agency selection companies
such as AAR Partners
http://www.aarpartners.com
or Agency Assessments
http://www.agencyassessments.com/
for further details, or the agencies themselves."
So, those two organizations may be of help to you.
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