Revenue Must Be Tied To Relevance

As Coke, P&G, Anheuser-Busch, State Farm, and other blue chip clients re-examine agency compensation structures and push for performance-based models, ad agencies need to tie their revenue structures to customer value rather than charge for softer, less critical measures such as commission from media placements or billable hours.  (These measures are of minimal consequence and value to a client's business performance.)  Instead, agencies need to evolve to a system that equates revenues with information, influence, and relationships.