Thursday, May 19, 2011

In The Future, There Will Be Two Types Of Agencies

No, I’m not talking about digital versus traditional.

What I’m referring to are the two different ways in which agencies will be paid.

The first will be those agencies that continue to believe in labor-based fees, paid before the fact, and hence, are in no way dependent on results.

The second will those agencies that believe in performance-based fees, paid after the fact, and hence, directly tied to results.

The more people who watch the advertising created by this second type of agency, the more money this second type of agency will make.

The longer people watch the advertising for, i.e. all sixty seconds of a sixty-second spot, the more money this second type of agency will make.

Which will make this second type of agency “partners” with their clients in the most important sense of the word.

Financially.

Now, for the most important question.

Which type of agency do you think will do the best work?

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