COI roster shops hit by contract shake-up

COI has tightened up its agency remuneration process in a move that will reduce the incomes of its newly appointed roster of agencies.

Agencies were concerned when they were handed the new contract to see changes in the commission structure, and income from print campaigns considerably reduced.

COI pays agencies commissions on a sliding scale. They receive a percentage of the total billings on their accounts: the higher the billings, the lower the percentage.

The changes, which will see agencies getting paid up to 1 per cent less, will come into effect from April.

Peter Buchanan, the COI chief executive, said: "More money is going through agencies, so we have reduced the commission levels."

The issue with print campaigns will affect agencies including Abbott Mead Vickers BBDO, Leo Burnett and Delaney Lund Knox Warren & Partners, all of which hold print-heavy COI accounts.

COI's new terms stipulate that agencies will no longer be able to use their in-house studios to adapt print work. Instead, they will have to use one of the three press pre-production houses with which COI has negotiated a direct contract.

Buchanan explained: "We get better prices by using our own pre-production houses."

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