# Bob Lord Challenges Holdcos' FTE Pricing Models

> Horizon Media CEO Bob Lord calls for end to FTE pricing models in advertising.
- Title: Bob Lord Challenges Holdcos' FTE Pricing Models · Adweek
- Summary: Horizon Media CEO Bob Lord calls for end to FTE pricing models in advertising. Horizon Media CEO Bob Lord argues that traditional FTE pricing models in…
- Keywords: bob lord, horizon media, holdcos, fte pricing, value-based compensation, advertising, Bob, Lord, Challenges, Holdcos', FTE, Pricing
- Source: Adweek — https://adweek.com/agencies/horizons-bob-lord-takes-aim-at-holdcos-fte-pricing-models-its-the-old-system
- Author: Kendra Barnett
- Published: 2026-09-29T21:02:29+00:00
- Read time: 1 min
- Topics: bob lord, horizon media, holdcos, fte pricing, value-based compensation, advertising
## Bob Lord's Critique
Bob Lord condemns agencies' labor-based pricing models at Smartly event.

> it's the old system: fte-based models, principal-based buying
## FTE Models Decline
Multinational advertisers using fte models dropped from 54% in 2011 to 17% by 2026.

> labor-based approaches have been the historic standard in the ad industry
## WPP's Mixed Approach
WPP uses a mixed economy of business models with labor-based time and materials.

> wpp plans to use a mixed economy of business models
## Horizon's Client Case
Horizon reduced fte by a third and tech spend by 20% for a major airline client.

> i lost the business because i was taking away from the clients marketing budget
## Client Readiness Hurdle
Publicis CEO says outcome-based pay is easier said than done for clients.

> it would be ignoring clients reality to think you can scale it to every one of them
## What Happens Next
Horizon pushes for value-based compensation to replace fte pricing models.

> we need an alternative to the big holdcos
## Key takeaway

Horizon Media CEO Bob Lord argues that traditional FTE pricing models in advertising must be replaced by value-based compensation to drive client growth.