* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Monday, September 29, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    Jussie Smollett Claims He Was ‘Disrespected’ on the ‘Special Forces’ Season Premiere – Yahoo

    Jussie Smollett Opens Up About Feeling ‘Disrespected’ During the ‘Special Forces’ Season Premiere

    TicketSmarter Fall Entertainment Guide – Eastern Illinois University Athletics

    TicketSmarter Fall Entertainment Guide – Eastern Illinois University Athletics

    Cardi B Adds More Dates to Little Miss Drama Tour: ‘Y’all Making Me Work’ – Yahoo

    Cardi B Extends Little Miss Drama Tour: “Y’all Making Me Work

    ‘Today’: Sheinelle Jones Thanks Katie Couric for Support After Husband’s Death – CBS 19 News

    Sheinelle Jones Expresses Heartfelt Thanks to Katie Couric for Support After Husband’s Passing

    Sate your hunger at DBA’s Taste of Downtown – Bakersfield.com

    Indulge Your Cravings at DBA’s Taste of Downtown!

    Caesars Entertainment (CZR): Assessing Valuation After Times Square Casino Setback and Mounting Investor Concerns – simplywall.st

    Caesars Entertainment Faces Times Square Casino Hurdles as Investor Concerns Mount

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Why I gave the world wide web away for free | Tim Berners-Lee – The Guardian

    Why I Decided to Make the World Wide Web Free for Everyone | Tim Berners-Lee

    From shale to steam: Fossil fuel technology boosts clean geothermal energy – Washington Examiner

    From Shale to Steam: How Fossil Fuel Technology is Powering a Clean Geothermal Energy Revolution

    How Sustainable Technology is Shaping a Greener Future – Technology Magazine

    How Sustainable Technology is Driving the Revolution Toward a Greener Future

    Aurora police hope to add facial recognition technology to crime-fighting tools – CBS News

    Aurora Police Aim to Boost Crime-Fighting with New Facial Recognition Technology

    Autonomous Solutions shows off cutting-edge technology for the public – Cache Valley Daily

    Autonomous Solutions Unveils Cutting-Edge Technology for the Public

    Amazon to Pay $2.5 Billion in Prime Membership Settlement – The New York Times

    Amazon to Pay $2.5 Billion in Prime Membership Settlement – The New York Times

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    Jussie Smollett Claims He Was ‘Disrespected’ on the ‘Special Forces’ Season Premiere – Yahoo

    Jussie Smollett Opens Up About Feeling ‘Disrespected’ During the ‘Special Forces’ Season Premiere

    TicketSmarter Fall Entertainment Guide – Eastern Illinois University Athletics

    TicketSmarter Fall Entertainment Guide – Eastern Illinois University Athletics

    Cardi B Adds More Dates to Little Miss Drama Tour: ‘Y’all Making Me Work’ – Yahoo

    Cardi B Extends Little Miss Drama Tour: “Y’all Making Me Work

    ‘Today’: Sheinelle Jones Thanks Katie Couric for Support After Husband’s Death – CBS 19 News

    Sheinelle Jones Expresses Heartfelt Thanks to Katie Couric for Support After Husband’s Passing

    Sate your hunger at DBA’s Taste of Downtown – Bakersfield.com

    Indulge Your Cravings at DBA’s Taste of Downtown!

    Caesars Entertainment (CZR): Assessing Valuation After Times Square Casino Setback and Mounting Investor Concerns – simplywall.st

    Caesars Entertainment Faces Times Square Casino Hurdles as Investor Concerns Mount

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Why I gave the world wide web away for free | Tim Berners-Lee – The Guardian

    Why I Decided to Make the World Wide Web Free for Everyone | Tim Berners-Lee

    From shale to steam: Fossil fuel technology boosts clean geothermal energy – Washington Examiner

    From Shale to Steam: How Fossil Fuel Technology is Powering a Clean Geothermal Energy Revolution

    How Sustainable Technology is Shaping a Greener Future – Technology Magazine

    How Sustainable Technology is Driving the Revolution Toward a Greener Future

    Aurora police hope to add facial recognition technology to crime-fighting tools – CBS News

    Aurora Police Aim to Boost Crime-Fighting with New Facial Recognition Technology

    Autonomous Solutions shows off cutting-edge technology for the public – Cache Valley Daily

    Autonomous Solutions Unveils Cutting-Edge Technology for the Public

    Amazon to Pay $2.5 Billion in Prime Membership Settlement – The New York Times

    Amazon to Pay $2.5 Billion in Prime Membership Settlement – The New York Times

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Technology

Unraveling the AI dilemma in media agencies: cost savings or revenue shake-up?

April 2, 2024
in Technology
Unraveling the AI dilemma in media agencies: cost savings or revenue shake-up?
Share on FacebookShare on Twitter

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.

“The question of how to be compensated is a live one,” said a senior exec at a consulting firm, who exchanged anonymity for candor. “Clients are saying to agency execs ‘well if it’s going to take you 20% less time to manage our media thanks to AI, does that mean we’re going to see a 20% reduction in fees?”

Of course, there’s a lot more to this than blunt questions. Marketers are aware that AI’s capabilities in targeting, personalization, and optimizing campaigns might justify a price increase for these upgraded services, rather than a fee cut. Nevertheless, questioning costs remains prudent.

“Every discussion we have with marketing procurement teams on Gen AI,  financial savings is front and center,” said Gregg Paul, 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.”

Still, don’t expect sudden upheavals. With marketers yet to take control and agencies in no position to dictate terms, the current scenario is more about ongoing dialogues, as both parties navigate the evolving landscape.

That’s why execs are cautious not to hype these initial discussions too much. They’re wary of falling into the trap of overestimating the short-term impact of new technology and underestimating its long-term effects. 

In the short term, they believe there will be little change in how advertisers pay media agencies. Looking ahead, however, agencies focused solely on selling time rather than value may face revenue losses to automation. 

In contrast, those that adapt, proving they can deliver superior outcomes per hour, may justify charging more for their strategic, high-level services.

“It may be early days still but agencies will no doubt be thinking about how to package the huge investments they’re making in AI, and how they can reallocate the time saved into more strategic, valuable services as well as maintain client revenue,” said Ryan Kangisser, the managing partner of strategy at media advisory firm Mediasense.

What’s surfaced so far is merely the beginning.

Marketers are already assessing the potential risks associated with agencies integrating AI more deeply into their operations. 

One such concern, highlighted by Mark Gay, chief client officer at Ebiquity, involves the unique advantages that agencies might gain through leveraging their proprietary data in their AI models.

“Medium term the conversation may well evolve to focus on the two-way value exchange between the data inputs a client can provide and all an agency can do with that across all their client base, and the added value the agency will return to that specific client based on how they have trained their AI — with this value equation defining the commercial model,” said Gay.

For now, however, these discussions are centered on risk, not fees, and for good reason. Marketers have witnessed the consequences of agencies accessing their proprietary data. Remember agency trading desks?

Part of the issue was the pooling of client data, providing agencies with scale but leaving advertisers feeling shortchanged. Advertisers lost control over where their ads ran, who saw them, and how their data was utilized for targeting purposes. 

It’s understandable then that advertisers would be cautious of history repeating itself with AI. 

Those concerns have pushed marketers to seek assurances on what happens to their data once it’s been fed to an agency’s AI. Is that model then being used for the benefit of other advertisers, they wonder. If not, they want to know what protections and provisions are being used to make sure this sort of risk is curbed. 

“Questions about data and IP leakage are bound to escalate as AI blurs the already fuzzy boundaries around usage rights,” said Andrew Frank, a vp analyst who sits in the Gartner Marketing Practice. “We might expect to see a resurgence of demands for category exclusivity and full-service agency consolidation.”

At its core, this is all about marketers figuring out what value their agency derives from their client relationship and whether it aligns with what they receive in return. It’s easy to see how marketers might then contemplate leveraging this insight as an opportunity to negotiate lower fees.

“We’ve got clients who are thinking about moving to a modell where maybe their agency fees reduce in return for releasing some of their data to agencies looking to build out their AI solutions,” said a exec at a global consulting firm who spoke on condition of anonymity because they were not authorized to speak to Digiday. “There are one or two CMOs we work with who are saying ‘hang on, our media agency should be paying me for this, not the other way around’.”

But agency bosses can breathe a sigh of relief, at least for now. Most advertisers are still grappling with understanding the value of their data, let alone articulating it to others.

Whatever happens, it’s going to be a slow burn, not a sudden blaze.

Yet, when these challenges do arise, those agency leaders will need to stand firm against some of these proposals — or at least not readily concede to them. That’s why it’s crucial for these agencies to proactively adjust their practices to enhance efficiency and translate those savings to clients. This has always been essential in running a successful media agency: realizing that while overall marketing budgets may not change, clients always expect agencies to find more efficient ways to deliver results.

“it comes back to the idea that as much as agencies would like to claim that they can drive performance, it’s hard, though not impossible, to prove,” said Brian Wieser, media analyst and author of the Madison and Wall newsletter. “And so in lieu of that, they have to pursue efficiency every year. And so every year, they need to have a plan in place about how they’re going to drive more costs down. You already see that in these applications of AI across the agency holding groups.” 

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : DigiDay – https://digiday.com/marketing/unraveling-the-ai-dilemma-in-media-agencies-cost-savings-or-revenue-shake-up/?utm_campaign=digidaydis&utm_medium=rss&utm_source=general-rss

Tags: dilemmatechnologyunraveling
Previous Post

Marketing Briefing: How eBay is experimenting with generative AI for more ad personalization now

Next Post

Four months in, here’s the rundown of Google’s Chrome cookie conundrum so far

Neighborhood Ecology Corps – RaleighNC.gov

Uncover How the Neighborhood Ecology Corps is Transforming Raleigh

September 28, 2025
A chemistry teacher’s approach to chocolate making: Meet Maram the STEM chocolatier – The Advocate

A chemistry teacher’s approach to chocolate making: Meet Maram the STEM chocolatier – The Advocate

September 28, 2025
The right stuff: New cohort of astronauts recruited by NASA – Digital Journal

The right stuff: New cohort of astronauts recruited by NASA – Digital Journal

September 28, 2025
‘Fallapalooza’ encourages active lifestyle for senior safety – WVIR

Fallapalooza Ignites Senior Spirit for Active and Safe Living

September 28, 2025
Why I gave the world wide web away for free | Tim Berners-Lee – The Guardian

Why I Decided to Make the World Wide Web Free for Everyone | Tim Berners-Lee

September 28, 2025
While chasing DK Metcalf, Isaiah Rodgers reached unprecedented speed – Yahoo Sports

Isaiah Rodgers Hits Unbelievable Top Speed While Chasing Down DK Metcalf

September 28, 2025
Poland bounce back with first ever World Championship bronze – Volleyball World

Poland Triumphs with Historic First-Ever World Championship Bronze in Volleyball

September 28, 2025

Russian Economy Struggles Under Growing Strain of Ukraine Conflict

September 28, 2025
Jussie Smollett Claims He Was ‘Disrespected’ on the ‘Special Forces’ Season Premiere – Yahoo

Jussie Smollett Opens Up About Feeling ‘Disrespected’ During the ‘Special Forces’ Season Premiere

September 28, 2025
Tom Holland shares health update after suffering concussion on ‘Spider-Man: Brand New Day’ set – New York Post

Tom Holland Opens Up About His Recovery After Concussion on ‘Spider-Man: Brand New Day’ Set

September 28, 2025

Categories

Archives

September 2025
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
2930  
« Aug    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (842)
  • Economy (862)
  • Entertainment (21,736)
  • General (17,298)
  • Health (9,905)
  • Lifestyle (875)
  • News (22,149)
  • People (864)
  • Politics (872)
  • Science (16,072)
  • Sports (21,362)
  • Technology (15,845)
  • World (844)

Recent News

Neighborhood Ecology Corps – RaleighNC.gov

Uncover How the Neighborhood Ecology Corps is Transforming Raleigh

September 28, 2025
A chemistry teacher’s approach to chocolate making: Meet Maram the STEM chocolatier – The Advocate

A chemistry teacher’s approach to chocolate making: Meet Maram the STEM chocolatier – The Advocate

September 28, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version