South Africa, July 30 -- In today's dynamic advertising ecosystem, media agencies are navigating mounting pressure to reduce their fees to stay competitive. This shift is largely driven by client procurement departments seeking cost efficiencies and by technological advancements that enable greater automation in media buying. While this trend may secure short-term client wins, it carries the risk of destabilising the long-term viability of agencies. There is a growing concern that by consistently devaluing their services, agencies may be undermining their strategic relevance, eroding profit margins, and jeopardising enduring client relationships.

The structure of media agency compensation has undergone significant transformation. Initial...