The World: Chicago - Coke seeks support for value compensation model

Coca-Cola is looking to instigate an industry movement towards a value-based compensation model, similar to the one that it has already adopted with its own agencies.

The model allows clients to pay agencies nothing more than recouped costs if they under-perform, but also offers them profit margins of up to 30 per cent if work hits the top targets.

Coca-Cola revealed its model at the Association of National Advertisers' Financial Management Conference in Phoenix, and admitted that it would like to point the rest of the industry in the same direction.