6 min Read
“The new commercial agreements link partial agency compensation directly to measurable client sales and brand outcomes, where possible.”
“There is growing industry chatter around moving up to 10% of fees from hourly/FTE billing.”
“Business is going to move partly to an outcome-based relationship with our clients.”
WPP has aggressively compressed hundreds of legacy operating units into four core business units — to offer rounded services to clients – which may help achieve brand KPIs. WPP has claimed that its major client wins are directly tied to this architecture.
Publicis Groupe has claimed that outcome-based pricing has been integrated into the agency’s framework for a decade, though it remains a limited portion of overall revenue. This is also possible because of an integrated approach.
Omnicom’s internal leadership compensation is based on performance metrics – to align with agency fees partly based on outcomes.
Client-centricity is the new mantra of Dentsu Global, focusing on deep cross-capability collaboration to deliver fully integrated solutions to clients.
While E-commerce & Q-commerce advertising are closer to being linked to brand commercials (read: sales), most brand advertising is not restricted to a single medium or activity – as the diagram above reminds us. And there are too many external elements like distribution, packaging, competitive pricing – all of which will remain out of the purview of agency operations.
The times are changing. Here’s a quick run-down.
Generative AI is Reshaping Discovery
For decades, the holy grail of digital advertising was ranking first on Google Search. However, the rise of Search-Embedded AI (like Google AI Overviews and Perplexity) and Assistant-Native AI is changing how people find information – getting single, consolidated answers – making brands pivot from SEO to Large Language Model Optimisation, AI-driven real-time personalisation, conversational commerce, and the shift from click-through rates (CTR) to answer-engine citations.
This is accelerating the rise of Digital Commerce as a medium.
With social media users rapidly swiping through short-form video feeds on mute, the first two seconds of an advertisement have never been more critical. This article provides a structural breakdown of how modern creators design video ads tailored for “silent scrolling”. It highlights how visual cues, immediate dynamic captions, and kinetic typography are no longer secondary options—they are non-negotiable foundations for driving social commerce.
Key drivers include feed-to-storefront mechanics, visual-first storytelling, and micro-video pacing.
With social media users rapidly swiping through short-form video feeds on mute, the first two seconds of an advertisement have never been more critical. This article provides a structural breakdown of how modern creators design video ads tailored for “silent scrolling”. It highlights how visual cues, immediate dynamic captions, and kinetic typography are no longer secondary options—they are non-negotiable foundations for driving social commerce.
Key drivers include feed-to-storefront mechanics, visual-first storytelling, and micro-video pacing.
Programmatic on the decline: In this scenario, programmatic advertising is naturally losing its shine.
While massive celebrity endorsements still hold weight, large-scale campaigns often feel detached from real life. Today, local-first advertisements are winning by capturing highly specific regional relevance. This article profiles the shift toward micro-targeting through “neighborhood influencers” and community-centric campaigns that lean into local humor, localized programmatic ad buying, and niche storytelling.
The focus relies on programmatic ad precision, community trust, and regional ad variants.
Modern consumers are hyper-aware of traditional marketing tactics and increasingly reward brands that feel raw and authentic rather than overly produced. This article covers the rise of “earned-first,” story-driven narratives that play into consumer skepticism.
A great example is Ogilvy’s CeraVe Michael Cera social-first campaign : it propagated lightweight conspiracy theories, went viral, and finally appeared as a multi-million dollar SuperBowl ad! Tactics included leveraging audiences acting as ‘detectives’, utilizing TikTok-style ‘lo-fi’ production values, and avoiding over-hyped, polished commercials.
Moving far beyond annoying pop-ups or interruptive banner ads, video games have evolved into a major native advertising environment. Brands are now finding success by integrating directly into game worlds organically—whether through virtual apparel, custom in-game events, or interactive spaces. This article investigates how to successfully cross the line into immersive gaming environments without breaking the player’s experience.
New Opportunities: Virtual billboards, interactive shoppable elements within games, and meta-advertising.
The past two decades have rung in many changes. Will it also witness agency fees linked to brand commercials?
The short answer to that is that we may have to wait for a while, till digitization covers every element of business operations – distribution, packaging, competitive pricing – making all data available centrally in real time.
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