Despite AI's rapid advancements in advertising processes, the remuneration models that agencies adhere to remain stagnant. Analysts point out that while discussions around changing these models are ongoing, concrete actions are still limited and primarily relegated to small-scale pilots. Key barriers such as cultural norms, technological hurdles, and management practices prevent a full transition from traditional billable hours to outcome-based compensation. Effective realignment between advertisers and agencies is essential to navigate these complexities and foster an environment conducive to flexibility and measurable outputs.
AI has not as of yet transformed the remuneration model, said Forrester analyst Jay Pattissall.
Ryan Kangisser, the chief strategy officer at media consultancy MediaSense, put it: "There is an inevitability about the shift to output models as with AI, time (which dominates so many compensation models) is often incidental to the actual output."
Realigning advertisers and agencies around flexible, AI-era workflows means moving beyond fixed headcounts and rigid team structures.
Clients and agencies will need to instill clear guidance, frequent dialogue.
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