A PRIP payment is a mechanism widely used by clients to evaluate and reward their agency partner(s). It essentially aligns agency performance with a company’s marketing objectives. Payment is normally subject to achieving pre-agreed targets/criteria. They are done on an annual basis and generally cover all aspects of the agency relationship from planning/buying to team performance etc.
A PRIP shouldn’t be agreed without FULL disclosure of other commercial opportunities for an agency to make money
Two distinct parts make up a PRIP:
In house of pain
Technology is tempting some big names to do media buying themselves and cut out agencies, but it’s not a binary decision.