A-B also sticks it to agencies


Agency fees are also being trimmed InBev’s quest to trim $1.5 billion in costs out of Anheuser-Busch, according to AdAge. A-B has swapped its long-held retainer-based model of compensating its busiest agencies for a new approach based on an agreed-upon scope of work at the shops. That shift puts the agencies on the hook if projects require more hours or greater cost than expected. Other changes include stingier reimbursement rates for production costs and smaller, flat per-concept fees. The story also said agencies could lose 25% or 30% of their fees. A-B’s agency roster is led by DDB, Chicago, which handles Budweiser, Bud Light, Bud Light Lime and Budweiser American Ale. Other A-B shops include Euro RSCG; LatinWorks; Cannonball, St. Louis; and Deutsch, New York. A-B handles media buying and planning internally.