Tuesday, April 28, 2009

How Coke's new compensation system works

http://adage.com/article?article_id=136266

BEFORE: Agencies and Coke negotiate in advance how much profit the former will see on a given project.
AFTER: Agency is guaranteed only recouped costs, with any profit coming only if certain targets are met.

BEFORE: Agency decides what Coke should pay for a project based on the time it expects to expend on it.
AFTER: Coke tells agencies how valuable a project is based on strategic importance, whether other agencies could deliver the same outcome, and other factors.

How do they expect to accurately measure the success of offline, cable, display in building a brand "other factors" doesn't seem like a business I would involve my best talent with?

-Troels Smit

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