A 'Value Based' Compensation System for Advertising Agencies Involves Which

question 7

Multiple Choice

A 'value based' compensation system for advertising agencies involves which of the following?

• A) Paying only for billable hours spent on creating advertising for the client
• B) Paying a set % of the total value of the media spend on the advertising
• C) Paying performance related fees for advertising that adds to the clients profits in measurable terms
• D) Paying a set % of the total brand revenue earned by the brand in that year.

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Definitions:

Cognitive Psychology

A branch of psychology focused on studying how people perceive, think, understand, and remember information.

Mental Activities

Tasks or operations that involve cognitive functions such as thinking, reasoning, memory, and problem-solving.

Processing

The act of taking in, understanding, and interpreting information or stimuli.

Psychoanalytic Psychology

A theory developed by Freud focusing on unconscious processes and the significance of childhood experiences in shaping personality.