When thinking about advertising research over the weekend, I was thinking about the process that companies and third party researchers go through, especially compensation. I have learned that companies almost always extend their need for research to another company, out-of-house, and rarely have market research projects happening in-house. So, generally, I was wondering how much do they companies pay research companies and how do they base the pay? They could be paid one flat fee, but I thought to myself, what if a research company does fantastic research, which results in a company to host a campaign that possibly breaks records in profit for example.
An article from The Economic Times, called “Coke to link Nielsen's pay to value" really cleared at least one of those questions up. The article stated that, Coca-Cola Co started a “pay-for-performance model” in relation to the research companies they hired for research. In particular, Coca-Cola Co extended this model to the head research company Nielsen, in order for them to receive the most accurate and correct research data possible. If that data was inaccurate or incorrect, Nielsen would not receive the “quality” of pay it should have through more reliable research data. I think this is particularly interesting, especially using Nielsen, who has been one of the most respectable research companies in the world. However, I think this model works, if you work hard, you will get paid for it . . . simple and great for competition and quality of service.
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