AI is changing how agencies work with advertisers. Bob Lord of Horizon Media says transparency and performance-based pay are replacing old models. Agencies that resist risk falling behind.
AI is forcing a major rethink inside advertising agencies, with direct consequences for how publishers, marketers, and content businesses manage campaigns, measure results, and negotiate compensation. Bob Lord, president of Horizon Media, argues that agencies must move beyond cost-cutting and embrace AI as a tool for driving client growth and transparency.
Lord, who previously led Razorfish and IBM’s digital transformation, says many agencies are stuck in legacy models that focus on reducing expenses rather than delivering measurable business outcomes. He believes the real opportunity with AI is to help advertisers grow faster, not just save money. According to Lord, agencies that fail to adapt risk losing relevance as AI makes the marketing supply chain more transparent and exposes hidden costs.
Transparency remains a major challenge. Lord points out that, despite advances in technology, many agencies still operate with opaque measurement and reporting. He credits Horizon Media’s CEO Bill Koenigsberg for prioritizing buying transparency, ensuring that any discounts or savings from publishers are passed directly to clients. However, Lord notes that new layers of technology and data fees have added complexity, making it harder for advertisers to track the true impact of their campaigns. He says AI is beginning to break down these silos, but warns that programmatic workflows have often perpetuated hidden costs rather than eliminating them.
For Lord, a modern agency should offer clients real-time access to campaign data and audience insights through online systems, eliminating the need for in-person meetings to understand performance. He envisions a future where advertisers can instantly see how their campaigns are performing, what their competitors are doing, and how consumer behavior is shifting-without waiting for end-of-week reports.
Lord is also pushing for performance-based compensation models, where agencies are paid only when clients achieve their business goals. He acknowledges that this approach is difficult for large holding companies that rely on predictable revenue streams, but says advances in AI now make it possible to tie media spend directly to outcomes. Five years ago, he says, the technology was not mature enough to support this shift.
Another area where Lord sees room for improvement is in adopting open-source technology and collaborative innovation. He notes that many leading AI models, including ChatGPT and Claude, are built on open-source foundations, allowing for rapid sharing of ideas and solutions. In contrast, agencies often try to control their own technology and data, viewing companies like Google and Amazon as competitors rather than potential partners. Lord believes agencies should learn from the tech world’s open ecosystems to better serve clients.
Ultimately, Lord says the true value of an agency lies in its ability to act as a growth partner, not just a vendor focused on cost efficiency. He argues that success depends on integrating media and creative strategies, using technology to build stronger connections between brands and consumers. Agencies that continue to operate as black boxes, he warns, are running out of time to adapt.
For those interested in the broader impact of AI on media operations, a recent article explores how new tools are reshaping editorial workflows and raising questions about transparency and trust. Read more in this analysis of AI’s influence on newsroom processes.
Bob Lord is scheduled to speak at Programmatic IO in New York City on September 28, where he will join a panel discussing the tech-enabled future for agencies.
