AI Shakes Up How Ad Agencies Get Paid
So, there’s a big shift happening with ad agencies now that AI’s saving them tons of time. Traditionally, they’ve billed clients by the hour, with different rates for each role. But AI is cutting down on hours and even the need for some roles, so now they’re rethinking how they charge. Instead of hourly rates, some agencies are charging based on results or specific deliverables, like a set number of social posts or engagement goals.
For example, some agencies are working with big clients like GM and Google on these new models, where clients pay for outcomes, not hours. This setup is actually helping agencies produce better work because they’re not focused on clocking hours anymore. But it’s tricky to switch from the old system, especially with clients used to paying for time. It’s a huge change, but it could lead to way more creativity and efficiency in the industry!
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