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Blended Rate

The second method is where the same hourly rate is allocated to each team member working on the client account. This is known as a blended rate where only one rate is in use.

To calculate a true blended rate, the scope of work to be carried out on behalf of the client must be clearly identified and the required inputs of each team member consistent against all projects where the blended rate is applied.The blended hourly rates used in the following examples are recommended by IAPI on the basis of the participating members responses.

For illustrative purposes, two examples of blended rate calculations for creative and media agencies are shown.

Example 1 - Blended Rate For Creative Agencies
In this example a general mix of all staff is applied

Role Rate Per Team Member Total Available Hours % of Time Required per Annum Hours Required Fee (Rate x Hours)
Account Director €140 1,540 15% 231 €32,340
Account Manager €125 1,540 30% 462 €57,750
Account Executive €100 1,540 40% 616 €61,600
Creative Director €225 1,540 10% 154 €34,650
Art Director €140 1,540 17% 262 €36,680
Copywriter €140 1,540 15% 231 €32,340
Account planner €100 1,540 10% 154 €18,480
2,110 €273,840
Blended Rate for assumed hours (€273,840 / 2,110) €130

Using the average hourly rates as listed above, and working on the basis that each staff member has 1,540 billable hours available to them per annum, the blended hourly rate in this example is €130.

Example 2 - Blended Rate for Creative Agencies
In this example a more strategic senior team is required to work on the account or campaign.

Role Rate Per Team Member Total Available Hours %of Time Required per Annum Hours Required Fee (Rate x Hours)
Account Director €140 1,540 20% 308 €43,120
Board Director €225 1,540 10% 154 €34,650
Creative Director €225 1,540 25% 385 €86,625
Art Director €140 1,540 12% 185 €25,900
Copywriter €140 1,540 10% 154 €21,560
Planning Director €225 1,540 30% 462 103,950
1,648 €315,805
Blended rate for assumed hours (€315,805/1,648) €192

The blended hourly rate in this example is €192 due to requirement of more senior input.

Example 1 - Blended Rate for Media Agencies
In this example a general mix of all staff is applied.

Role Rate Per Team Member Total Available Hours % of Time Required per Annum Hours Required Fee (Rate x Hours)
Strategy Director €200 1,540 5% 77 €15,400
Account Director €140 1,540 20% 308 €43,120
Media Planner €100 1,540 25% 385 €38,500
Account Executive €100 1,540 30% 462 €46,200
Media Buyer €80 1,540 25% 385 €30,800
Digital Planner €120 1,540 15% 231 €27,720
SEO €80 1,540 10% 154 €12,320
2,002 €214,060
Blended Rate for assumed hours (€214,060/2,002) €107

The blended hourly rate in this example is €107.

Example 2 - Blended Rate for Media Agencies
In this example, a more strategic senior team is required to work on the account or campaign.

Role Rate Per Team Member Total Available Hours % of Time Required per Annum Hours Required Fee (Rate x Hours)
Board Director €200 1,540 10% 154 €30,800
Strategy Director €200 1,540 15% 231 €46,200
Account Director €140 1,540 15% 231 €32,340
Media Planner €100 1,540 25% 385 €38,500
Account Executive €100 1,540 30% 462 €46,200
Media Buyer €80 1,540 20% 308 €24,640
Digital Planner €120 1,540 15% 231 €27,720
SEO €80 1,540 10% 154 €12,320
2,156 €258,720
Blended rate for assumed hours (€258,720 / 2,156) €120

The blended hourly rate in this example is €120 due to the requirement of more senior input.

Contact IAPI

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Dublin 2, Ireland.
T: 01 676 5991
www.iapi.ie
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(Mon - Thurs) and 5pm (Friday)

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