Magazine article Marketing

DDB Finds Takers for Guaranteed Payment by Results System

Magazine article Marketing

DDB Finds Takers for Guaranteed Payment by Results System

Article excerpt

DDB finds takers for guaranteed payment by results system Omnicom-owned DDB Needham Worldwide has signed up four clients to its controversial "payment-by-results" system launched in the US last May (Marketing, May 24).

Its London agency BMP DDB Needham also claims to be in serious discussion with one UK prospect for the proposal.

Chairman of DDB Needham Worldwide, Keith Reinhard, on a one-day visit to the UK last week, hit back at rivals who claim the "guaranteed results" system is not new. Agencies such as Leagas Shafton Davis Chick say they have been doing it for years. "The fact is that clients aren't aware of any others doing it and they identify DDB as the one who originated it," maintains Reinhard. Targets set jointly by client and agency can relate to anything from a sales increase to an attitude shift in an agreed time scale.

Payment is based on the typical 15% commission, with a potential deviation of up to 30% either way. In some cases it could be more -- and the account team gets two-thirds of any premium. …

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