MSA's new fee proposal is based across three categories - media buying, media planning and a combination of both functions.
Fees will vary according to a client's annual billings level, with the basic buying and planning function specified. Agencies can negotiate additional fees for extra services such as managing multi-brands, markets, communications planning, media/research data management and insights and use of media tools, internet planning and buying, promotion tie-ups and innovative use of media. The guidelines are to be implemented immediately.
MSA president Margaret Lim, chairman of Carat Malaysia, said media specialists were facing a "fairly serious" undercutting problem.
She attributed this to a combination of client and agency pressures, with the emergence of procurement executives on the client side and short-term, price-led strategies by agencies.
However, the proposed fee structure is largely a gentleman's agreement, leaving it open for MSA's 16 members to decide whether to adhere to or ignore the guidelines.