Derisking of High-volume Ad Agency Ops

6 min Read

Client campaigns are executed by independent brand teams for speed & efficiency. So how do you run a high volume ad agency with minimum risk of losing margins? We’ve been pondering a lot on this.

The Ad Agency BAU Model
Let’s say your agency business is running well. Every campaign & job is being billed accurately & on time, more or less. 

  • Typically, you use a software for accounting, maybe another for billing. 
  • Estimates are created as spread sheets. 
  • Ditto for issuing purchase orders to vendors. Some activities like performance marketing need no p.o. – as you just feed the client’s budget & expected outcome into the respective platform. 
  • Vendor bills are received and/or extracted from the respective platforms. And manually checked with the budgets entered. If any earlier period adjustments also reflect in a monthly bill, then this is segregated. 
  • Vendor bill amounts are checked with the estimate that was approved by the client. If at all, it has exceeded the line item, then the overall approved-estimate  value is checked. If that has also exceeded, then you report lower agency margin.
  • Finally, your client can be billed. (This, repeated for every campaign & job is business as usual for ad agencies.)
Management Dashboards

Then there are monthly management dashboards which are generated using another tool. 

  • Accounting systems do not maintain any link between sales and purchase transactions. But without this, no agency management dashboard will have any  depth. So all vendor & client bills must be grouped by campaign & job, before they are uploaded. 
  • This will help track client-wise billing vs corresponding vendor commitments. As well as agency margin targeted vs actual by client, campaign, & job. 
  • And if some clients demand custom reports, these need to be generated.
  • But all this intel will be based on bills booked. 
  • As you grow, there may be audit queries regarding loose process control, unlinked approvals, and perhaps even SOX compliance as you grow. Your back office team size may not be optimal. But business will not stop. 
Run a High Volume Agency with Full Control

What is required to run a high volume ad agency with decentralized operations and minimum risk?
We’ve been pondering a lot on this and have come to some conclusion:
What’s needed is a New Dashboard, which can ALERT (& block) campaigns:

  • If P.O. value + agency margin exceeds budget approved by client. 
  • If value of Client billed + Approved-but-not-billed Estimates is less than pro rata Client wise billing targets 

Now think of a central system of record. 

  • All campaigns are run completely independently but on a central system. Some controls are preset – like agency margin for each activity, campaign or job. And client-wsie billing target.  
  • With full freedom, each estimate is created with client value, agency cost & agency margin. Agency margin is auto checked with the preset value and warning is generated for designated persons.
  • Authority based online approval of each estimate is mandatory.
  • Even if agency margin reduces while generating vendor p.o., the system generates a warning to the designated persons. 
  • Management dashboards are real time – no need to wait for billing process to be completed & data to be uploaded.
  • For example, Agency Margin slippage can be alerted in real time.
  • Total value of Approved Estimates are compared with pro rata Client Billing targets.
  • Finally it’s possible to take commercial decisions & action in run time.

Cheers! And welcome to the ad agency of 2026.

Digital Transformation

As your ad agency adds new services, there will be a need to auto track agency margins throughout the multiple activities of each day. As well as track client billing vs commitments & targets.


It may not be humanly possible for the same teams to focus on client deliveries as well as track & report agency margins. As each client’s complex campaign or job execution progresses on a daily basis, what any agency management will need is a central system for keeping their teams continuously aware of slips in agency margins – well before the billing stage.


We call this a central system of record.

Btw, many agencies are comfortable with spreadsheets for agency operations. We respect that, but this leads to decentralized data, 

scattered all over the place. Some agencies feel that accounting systems are adequate to track margins – but that is always post-billing.  You need to be alerted well before billing to take any real corrective action.

Finally, a few agencies even go to the other extreme of building & maintaining their custom internal systems at great expense.

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