WPP is betting its future on getting paid for outcomes

"Those outcomes aren't 'do you like the agency you work with,' those outcomes are 'are we selling more product and will we get paid on being able to sell more product?' This represents a fundamental shift where fees are tied directly to business results, not inputs like hours worked or staff deployed."

"The commercial structure—fees tied to measurable sales and brand performance rather than hours worked—is the model WPP is actively pushing in pitches. CEO Cindy Rose stated: 'I believe this is the beginning of a more widespread commercial model evolution.'"

The advertising agency industry has traditionally operated on time-and-materials billing, where clients pay for hours worked and staff deployed. WPP is now publicly advocating for a fundamental shift toward outcome-based compensation models where agency fees are directly tied to measurable business results, sales performance, and brand metrics rather than inputs like hours logged. Jaguar Land Rover serves as a concrete example, with WPP negotiating an exclusive global partnership structured around performance-based fees. WPP leadership views this as the beginning of widespread commercial model evolution across the industry, moving away from predictable but imperfect staffing invoices toward contracts that align agency compensation with actual client business outcomes.

Read at Digiday