Tag: compensation
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Agencies Are Bolting AI Clauses Onto Contracts Written for Billable Hours
AI is shrinking the hours agencies bill for, and the contracts that govern that work were written for a different arithmetic. Four agency executives describe the fix so far: addendums, one clause at a time, covering IP, data and tool disclosure. Nobody has agreed on what AI should cost.
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Agencies Want Clients to Evaluate AI Agents Like New Hires
Some of the agencies building AI agents are the ones urging clients to slow down. Mod Op’s CTO says agents should be evaluated like new roles tied to growth, and Booking Holdings’ AI lead calls pricing and contracts a partnership exercise.
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Agency Leaders Predict Growth in Outcomes-Based Pricing, but Face Challenges.
Eighty-five percent of agency leaders expect to do more outcomes-based pricing. The consultancy that studied it says pure versions are “exceedingly rare” — what agencies more frequently agree to is an output fee with a performance measure bolted on. Sixty-nine percent name attribution as a barrier, and the same share name procurement.
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Three Seconds to Sell: Kellanova’s AI Test Drive in Creative Effectiveness
Kellanova is leveraging AI to enhance its advertising creative through a year-long collaboration with Vidmob and MMA Global. By analyzing 443 assets across ten brands, the company optimized elements to capture attention, resulting in a 2x view-through rate and an 11% ROI increase on AI-scored assets. Additionally, predictive models for sweet and salty products demonstrated…