Horizon Media CEO Criticizes Traditional FTE-Based Agency Pricing
· 2d ago · Originally reported by Adweek
Horizon Media's CEO, Bob Lord, has publicly questioned the effectiveness of full-time equivalent (FTE) pricing models used by major agency holding companies. He advocates for a shift toward value-based compensation, suggesting that the industry needs to modernize its approach to client billing.
Why it matters
This debate highlights ongoing changes in how advertising agencies charge clients, which could impact agency profitability and client relationships across the industry.
Explain it like I’m new here
It's like paying a babysitter by the hour versus paying them for how well they take care of your kids.
Terms in this story
Holding company (agency holdco)
An agency holding company (holdco) is a parent group that owns many advertising, media, creative and marketing agencies, such as WPP, Publicis Groupe, Omnicom, Dentsu and Havas.
Agency
An agency is a company that plans, buys, creates or manages advertising on behalf of advertisers, in exchange for fees, commissions or a margin on the media it buys.
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