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The American Association of Advertising Agencies (4A’s) and the Association of National Advertisers, Inc. (ANA) offer this position paper to use as a guideline for creating and maintaining effective advertiser and agency compensation agreements.
The purpose of this position paper is to provide guidelines for agencies in pursuing new business.
This position paper addresses the issue of whether to include agency contributions to retirement plans and new business costs when calculating agency overhead. The 4A’s position is that these necessary costs should be included in overhead when calculating agency fees even though some advertisers and agency search consultants disagree.