Pharma’s guide to media agency models

Introduction

When it comes to choosing a media agency, it's not just about who you partner with but also how you structure that partnership. The right commercial model can make all the difference in creating a productive, mutually beneficial relationship. Get it right, and you'll have a perfect partnership where the client gets top-notch work and the agency earns a fair profit with pride. But if it goes wrong, the client will be disappointed, stakeholders will get frustrated, and the agency will regret the deal.

Every client/agency relationship is unique, each with its own set of challenges and requirements. The setup of these partnerships should be carefully tailored to meet the specific needs at hand. The guidelines provided below offer a foundational understanding of the four key commercial models, but keep in mind that these are just starting points. Additionally, any Master Services Agreement (MSA) involves numerous other components that are crucial for a comprehensive understanding of agency-client relationships. Solli will explore these additional aspects in future articles to ensure a thorough grasp of what goes into creating effective and mutually beneficial media partnerships.

Now, let’s break down the four key agency models—commission-only, hybrid, 100% fee (Retained Team), and performance-based—highlighting their pros and cons to help you make an informed decision.

Commission-Only Model

Overview:

The commission-only model, where agencies earn a percentage of...