Here are the facts: There is a growing emphasis on measurable results within marketing models. Authenticity, trust, and transparency are no longer merely a customer demand, it is imperative to lasting client-agency relationships, as well. Budgets have gotten a lot tighter; while some leaders have raised concerns about its impact on creativity, others have opined that ‘necessity is the mother of all creativity’.
Ronald Hajjar, the Co-Founder and Managing Director of independent creative and strategy agency ANDCO, spoke exclusively to Campaign Middle East about all this and more, going beyond the everyday conversations to share how performance-based partnerships can strengthen client-agency relationships.
When questioned about outcome-based pricing models as a possible solution to bridge the client-agency gap, Hajjar said, “Agencies should consider moving toward outcome-based pricing, but it’s not a decision to take lightly. While traditional time-and-effort models have worked for a long time, the growing emphasis on measurable results means agencies need to align their efforts more closely with client success.”
Performance-based models and partnerships
This is where performance-based models can come in to strengthen partnerships since both sides are focused on achieving aligned goals.
“By linking compensation to specific outcomes, agencies can align their goals with the client’s success, creating a more collaborative environment where both sides are working toward the same objectives. This approach encourages agencies to be more strategic and proactive, leading to more innovative and effective campaigns,” Hajjar added.
This approach also gives agencies the opportunity to currently stand out in a competitive market by showing a commitment to delivering tangible results.
“But for these partnerships to work, it’s crucial to set clear goals, communicate openly, and make sure both sides fully understand what’s expected,” Hajjar said.
Tighter budgets and fair compensation
Pivoting the conversation from ideas to implementation, Hajjar advised caution calling for a hybrid approach.
He added, “It’s important that these models are also designed to reflect the creativity and complexity involved in the work fairly. A hybrid approach, combining outcome-based pricing with traditional methods, might be the best way to meet diverse client needs while ensuring agencies are compensated fairly.”
At this point, the challenges around fair compensation and tighter budgets entered the conversation. Does this hinder or spur creativity and agency-client relationships, we questioned. Hajjar remained optimistic, but shared both sides to the same coin.
“Tighter budgets definitely bring challenges, but they can also spark creative innovation. When resources are limited, agencies are pushed to think creatively, which can lead to more focused and impactful ideas,” Hajjar said.
He added: “However, if the pressure to deliver within these constraints isn’t managed well, it can also stifle creativity. The key is finding a balance — using budget limitations as a push for innovation without sacrificing the depth and quality of the creative work. In many cases, these constraints can actually lead to more effective campaigns, but it’s important not to cut corners that might undermine the creative impact.”
Tapping into stronger client-agency relationships
How then can clients/brands and agencies work better in an ecosystem where agencies constantly need to justify their spending on ads and campaigns, while clients continue demanding ROI, ROAS, and data to prove impact and effectiveness across brand-building and marketing.
“Trust and transparency are crucial in today’s client-agency relationships, and data-backed insights are a big part of that. But data alone isn’t enough. Agencies need to combine timely reporting with clear communication and a deep understanding of client goals and insights,” Hajjar explained.
“Regular updates that show how every dollar spent is moving the client closer to their objectives help build trust. It’s about going beyond the numbers — using data to tell a story of success and pinpointing areas for improvement,” he added.
Clearly, when done right, transparency paired with actionable insights can really strengthen trust and lead to longer-lasting partnerships.
Stay tuned to Campaign Middle East’s ongoing coverage of all the key conversations within the marketing, creative, media, and brand world. If you’d like to share your exclusive insights on ongoing conversation, drop a line to [email protected].
