A new report by the World Federation of Advertisers and MediaSense shows that 75% of major global brands plan to change how they pay their ad agencies in the next three years. The shift is driven by a desire for better alignment with business results, more accountability, and improved access to top talent. The study surveyed over 80 multinational companies managing more than $60 billion in annual ad spend.
It highlights a clear move away from traditional time-based billing towards payment models focused on outcomes. Brands are eager to reshape their payment structures in response to industry complexities, growing automation, and advancements in AI. The report found that 58% of advertisers plan to increase their focus on results-driven pricing to promote a fair value exchange with their agencies.
However, change won’t come without challenges. 84% of companies cited a lack of clear data and metrics to evaluate agency outcomes as a major obstacle. 87% believe agencies resist adopting models that would increase transparency around their profits.
Brands seek outcome-based agency payments
This lack of openness remains a sticking point. Only 15% of brands said their primary reason for shifting payment models is to cut costs.
In fact, most brands, 61%, expect agency fees to rise over the next three years, especially for high-level strategic and technical expertise. Routine tasks automated by AI are expected to be cheaper, with 58% of brands anticipating cost reductions in such areas. Tom Ashby, global lead of media services at WFA, stressed the urgency of this evolution: “The media landscape is evolving at an unprecedented rate, as new channels proliferate and AI reshapes the industry, bringing new complexities and even redefining the roles of advertisers, agencies, and media owners.
The agency business model—and with it, the remuneration structure agreed with advertisers—must continue to adapt.”
Advertisers face a pivotal choice: to push forward with more sophisticated, performance-driven remuneration models or revert to more predictable, traditional approaches. The survey shows that a clear majority are opting for the former, reflecting a desire to align agency performance with business outcomes. As brands and agencies navigate this significant transition, the focus remains on finding a balance that ensures profitability while aligning agency efforts with client business goals.
Ryan Kangisser, chief strategy officer at MediaSense, added: “While advances in AI will push the topic of remuneration further into view, agencies must not lose sight of their strategic and technical talent who will become more critical in balancing the efficiencies of a more automated service model.”
