As media agencies tout the potential of AI efficiencies, marketers are probing: Will this translate to cost savings, and if so, will those savings benefit them?
No one’s brandishing pitchforks yet, but a storm of probing questions is gathering momentum.
Marketers are asking: How is your agency harnessing AI and automation? Which tasks or workflows are AI-driven? How do you maintain transparency and accountability with AI use? Are there new pricing models that mirror AI-driven efficiencies? Can you share success stories where AI has notably boosted efficiency and outcomes for clients?
These queries orbit a fundamental concern: AI’s knack for streamlining and automating could significantly slash the billable hours, potentially shaking up the traditional billing model.
Well, at least to a point: After all, media agencies typically charge advertisers based on various factors such as project complexity, billable hours and the level of expertise involved. So any threat to this aspect of the model is sure to catch agencies’ attention and prompt serious consideration.
“Every discussion we have with marketing procurement teams on Gen AI, financial savings is front and center,” said Greg Paull, principal at consultancy R3 Worldwide. “It’s going to be the most important topic for this year. It’s up to both sides to be more transparent on how, where and when it’s being used.”
