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The Future of Media Remuneration is based on a survey of more than 80 multinational companies representing in excess of $60 billion in ad global spend. Additional interviews were held with senior agency leaders to reflect on the findings. It follows a 2023 study into the Future of Agency Models, which revealed a similar appetite to change the agency model.
“Change is being driven by an ambition to deliver better alignment to business outcomes, greater accountability & improved access to talent"
84% highlight the lack of data & measurement between advertiser & agency
87% believe agencies are resistant to models that require greater transparency
75% care about how their agencies make money; 28% believe they have transparency into how they do
The desire for change is not grounded in cost reduction (only 15% pointed to this as their reason to change) and there is room for optimism with 61% brands expecting agency fees to increase over the next three years. Brands expect to pay more for strategic and technical talent, while more commoditised or tech-enabled tasks will see fees drop. Where AI is deployed, 58% brands expect to pay less.
Advertisers today face a pivotal choice: to push forward with more sophisticated, performance-driven remuneration models or to revert to more predictable, traditional approaches, managing and reducing one area of complexity.
Tom Ashby, Global Lead Media Services, WFA
Future of Media Agency Models
This survey conducted by WFA and MediaSense in October 2023 illustrated that an overwhelming proportion of major multinational brands were looking to improve their agency model:
11% believe their current agency model will fit future needs
24% say it is unfit for future purpose
Flexibility, speed and integrated talent are key to future proofing services
