Why brands are rethinking how they pay their agencies
As budgets tighten, brands are rethinking agency remuneration models, pushing for performance, transparency and measurable returns on investment.
Brands are under growing pressure to deliver more with less, placing every penny under scrutiny, including agency fees, how they are spent, and the value they deliver.
Three-quarters (75%) of advertisers expect to change their agency remuneration model within the next three years, according to a global study from the World Federation of Advertisers (WFA) and MediaSense from November.
Currently, most advertisers use a hybrid approach to their remuneration models, commonly comprising commission, labour and outcome/performance-based fees.
