In November, a report from global advisory MediaSense found that an overwhelming majority of advertisers — three-quarters — are looking to make changes to their agency compensation model in the next three years.

A similar number of survey respondents indicated that they are seeking to better align agency compensation to business performance, however it may be defined by the brand.

According to Ryan Kangisser, chief strategy officer at MediaSense and co-author of the report, it is “unprecedented” for so many brands to want to change their compensation models at once.

Last year, Kangisser spoke on The Media Leader Podcast about how advertisers do not find the current agency model to be fit for current and future needs.

Now, he returns to discuss whether the agency remuneration model is fit for purpose and what a new outcomes-based approach could look like as a replacement in the near future.

"At the heart of this is the need for speed and agility," Kangisser said.

Highlights:

2:14: Overwhelming desire to change remuneration models

7:00: Moving to outcome-based compensation — are brands and agencies on board?

13:23: Have agencies moved to future-proof their business? "From attention to intention"

19:24: Misaligned incentives between brands and agencies

21:26: The impact of AI on fees and the future of talent and working practice

Related articles:

Three-quarters of advertisers want to change their agency compensation model

Why agencies must move from a buffet model to à la carte service

Marketers cut spend in main media as cautious approach continues

MediaSense reveals ‘biggest blocker’ to business transformation

MediaSense appoints Jamie Posnanski as global CEO

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Thanks to our production partners Trisonic for editing this episode.

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