“It’s about change management’: Sir Martin Sorrell says the billable hour is dying, but getting clients to move in is proving harder

March 25, 2026 Presented by Yes, outcome-based pay is en vogue. But none of it matters if agencies aren’t using AI at the scale the economics require. And that only happens if clients are willing to pay for it. Most aren’t. S4 Capital CEO Sir Martin Sorrell said as much on his marketing group’s latest earnings call yesterday — a cold dose of realism about the hype that comes after the billable hour. Advertisement TOP STORY Evolving Agencies "It's about change management': Sir Martin Sorrell says the billable hour is dying, but getting clients to move in is proving harder Sir Martin Sorrell says agencies can’t fix the billable hour until brands fix their AI problem. OTHER THINGS TO KNOW Connect with leaders from Allbirds, Yeti, Bloomingdale’s and many others at the Modern Retail Marketing Summit from April 20-22 in Huntington Beach. Learn more and secure your pass soon. Rather than add another interface for sellers and agencies to work with, Hector Ai brought Amazon advertising intelligence to where customers were already working for a more natural agent-driven workflow. Partner insights from Amazon Ads. Publishers: How are AI tools reshaping how media companies operate, from subscription marketing and ad sales to audience development and product management? What’s working for you and what’s not? And where is AI headed in media businesses this year and beyond? Tell us in this survey. A MESSAGE FROM DISNEY CAMPAIGN MANAGER Solve your ad buy You shouldn't have to piece together clues to understand campaign performance. Disney Campaign Manager puts you in the driver's seat with one simple ad solution across Disney+, Hulu and ESPN streaming platforms. Take control with live dashboards that show exactly what's happening, as it happens. See what ran. See what worked. See where performance actually came from. No mystery math. No detective work. Just clear answers to take into your next client meeting. Case closed. Get Started Today MEDIA & PLATFORMS AI Revenue Generation People Inc.'s Jon Roberts on the AI licensing boom – and the revenue lag People Inc’s Jon Roberts discusses the boom in AI content licensing marketplaces — and the revenue that could materialize for publishers. Evolving Agencies 'Be an engineer to understand the engine': Why consultant Nick Manning thinks principal media is anti-marketer An expert at the heart of Foster-WPP case argues principal-based media tensions could hold British group’s recovery back. PARTNER INSIGHTS FROM VIAFOURA Why participation is the new pathway to engagement for publishers In the reality of today’s media environment, scale is fragile. Traffic is rented. Content alone is no longer defensible. But participation turns audiences from passive consumers into active participants. MARKETING Marketing on Platforms Philadelphia Cream Cheese pulls dollars from search – people aren't Googling 'cream cheese' Philadelphia Cream Cheese has stopped paying for search ads, at least to prospective shoppers on Google. Over the past year, the Kraft Heinz-owned CPG brand has phased out its traditional search ad spend, opting to put those dollars instead into retail media and broader channels, according to Maddy Zingle, vp of marketing for Philadelphia Cream […] Advertisement PARTNER INSIGHTS FROM CINT Why cross-platform measurement is key to optimizing in real time When a campaign has clear goals, impressions are measured accurately and scale is sufficient to generate learnings, effective cross-platform measurement can help marketers turn negative lifts into positives. Generative AI Marketers shift growing shares of search spending to GEO Generative AI is pushing brands to shift SEO budgets toward visibility in AI-generated answers over clicks. PARTNER INSIGHTS FROM SEEDTAG Neuro-contextual AI matches creative to cognition Consumers have always responded to advertising that felt timely, relevant and emotionally aligned. Neuro-contextual AI allows advertisers to analyze the "why" and the "how" — the motivations and emotions that shape real engagement. DIGIDAY + Member exclusive Future of TV Briefing: WTF is the DASH TV universe study at the center of the latest Nielsen drama? This week's Future of TV Briefing looks at what is the TV universe study at the center of the recent drama surrounding Nielsen's The Gauge TV viewership report. Written by Jim Cooper and Sara Jerde Were you forwarded this email? Sign up to get it daily. Advertise | Digiday+ | Events | Awards Update your email | Unsubscribe | Privacy policy