Using Payment by Results to Create Better

Campaigns

Payment by Results (PBR) has great appeal to clients; if the agency doesn’t deliver,

their fee is cut

Agencies often complain about poor briefs, whilst clients can’t understand why their agency can’t see things that should be obvious

PBR means both client and agency put more effort into clearly defining “success” for the campaign

Outputs, Outtakes & OutcomesOutputs are the actions successfully executed within a campaign

Outtakes are the change in knowledge, attitude and opinions of the target audience

Outcomes are the resulting actions and behaviours

Understand which metrics should be used, but bear in mind the

ease and cost of measuring the impact of the marketing activities

on the business goals

Intermediate metrics are highly dependent upon the campaign results, and also clearly contribute to the business goal

Outcome based metrics are the best indication of the campaign’s impact; out-take and output metrics are more under the control of the agency

How Does PBR Work?

While there are many ways to run a PBR campaign, most use an

agreed fee, reduced by an agreed percentage if the agency fails to achieve the objectives. There is, however, an opportunity for the agency to earn a bonus if they

exceed a target

PBR results in better briefs, a more focused agency and a clearly defined common goal

When you can set good metrics, PBR makes sense, however some

campaigns don’t lend themselves to a PBR approach if the metrics are too

difficult or costly to measure