# Brands Stall Shift to Performance Pay

> Brands resist moving from hourly billing to results-based agency payments despite AI pressures.
- Title: Brands Stall Shift to Performance Pay · Adweek | Shortify
- Summary: Brands resist moving from hourly billing to results-based agency payments despite AI pressures. Brands delay adopting outcome-based remuneration for agencies…
- Keywords: adweek, agencies, performance pay, fte billing, outcome-based remuneration, coca cola, horizon media, s4 capital, procurement, Brands, Stall, Shift
- Source: Adweek — https://adweek.com/agencies/adweek-agencies-advantage-brands-stall-the-shift-to-performance-pay
- Author: Christopher Cicchiello
- Published: 2026-10-09T12:14:54+00:00
- Read time: 1 min
- Topics: adweek, agencies, performance pay, fte billing, outcome-based remuneration, coca cola, horizon media, s4 capital, procurement
## FTE Model Declared Outdated
Bob Lord, Horizon Media Holdings president, called the FTE billing model the 'old system' at an industry event.

> The FTE (full-time equivalent) billing model is the "old system."
## AI Pressures Revenue Models
Agencies face revenue shifts as AI reduces time spent and headcount assigned to clients.
## Outcome-Based Pay Models
Agencies push for payment tied to client targets like sales figures or stock price increases.
## Coca-Cola Tests New Models
Coca-Cola seeks agency partners who can tie advertising to performance and sales metrics.

> I believe in actions and behavior, which in our business, means consumption.
## Client Resistance to Change
Clients worry new payment models will raise short-term service costs with tighter marketing budgets.
## Agencies Push for Testing
Agencies should start educating clients on new models, identify metrics, and test with a few brands.
## Procurement Hurdles
Procurement teams view agencies as cost centers, not strategic investments, requiring cost caps to agree.

> The problem is marketing says 'yes,' and when you get to procurement, procurement needs Linus' safety blanket; they’re worried.
## Key takeaway

Brands delay adopting outcome-based remuneration for agencies as they fear short-term cost increases.