The PR Measurement Conundrum: Aligning Remuneration with Business Outcomes

In an evolving marcomms landscape shaped by AI, data-driven strategies, and economic pressures, agency (and PR freelancer) remuneration models are at a crossroads.

As AMEC’s PR measurement month continues, a substantial report from the world of advertising shows that the relationship between remuneration and measurable results remains fraught and with growing challenges in the very near future.

According to the recent Future of Agency Remuneration report by MediaSense and the WFA, 75% of clients plan to change their compensation structures within three years. Yet, many face logistical and cultural barriers to implementing more equitable models. At the heart of these challenges lies a crucial disconnect: the difficulty of aligning agency/freelancer remuneration with clearly defined, measurable business outcomes.

Hybrid Models: A Flexible but Flawed Standard

Currently, most clients use hybrid models combining commission, labour, and performance-based fees. This approach offers flexibility, balancing predictable costs with incentives for exceptional results. Yet, it falls short in fostering accountability and alignment with strategic business goals. For instance, labour-based fees, while transparent, prioritize inputs over outcomes. Commission-based fees incentivize increased things like media spend rather than effectiveness, while performance-based components remain underutilized, accounting for only a fraction of total remuneration.

The report highlights that 74% of clients aim to better tie agency fees to business performance, and 58% foresee a rise in outcome-based models. However, these aspirations collide with a fundamental problem: insufficient measurement frameworks.

Measurement: The Achilles Heel of Outcome-Based Models

Implementing performance-driven remuneration requires robust methods to link marketing efforts to business success. Yet, 84% of respondents cite a lack of data and measurement infrastructure as a critical barrier. Without clear metrics, agencies and freelancers are hesitant to embrace riskier performance-based structures, fearing misattribution of success or failure to factors beyond their control.

Agencies also grapple with an uneven playing field. While clients push for accountability, internal finance and procurement teams often resist the unpredictability of outcome-based models, creating a disconnect within client organizations. This misalignment further complicates efforts to redefine compensation structures.

Transparency: A Source of Tension

Transparency remains another sticking point. The report reveals that 87% of clients believe agencies resist greater financial transparency, while only 28% feel confident in their current understanding of how agencies make money. Opaque revenue streams continue to undermine trust, making it harder to negotiate equitable remuneration models.

Why Defining Business Outcomes is Crucial

To achieve equity in remuneration, clients must invest in defining measurable business outcomes. This involves creating a shared framework linking metrics (e.g., impressions, engagement, sign-ups, attendance at events) with broader business KPIs like sales or market share growth. While challenging, this alignment is essential to moving beyond traditional inputs-focused models.

Such frameworks not only enhance accountability but also help resolve misalignments between client and supplier goals. By clearly tying success to tangible results, both parties can adopt a collaborative approach, shifting the focus from short-term cost-cutting to long-term value creation.

A Call for Experimentation and Collaboration

The path forward lies in experimentation and mutual accountability. Clients are encouraged to pilot outcome-based models on smaller scales—whether by campaign or region—before scaling successful approaches. Agencies, in turn, must embrace transparency and invest in data capabilities that demonstrate their value beyond execution.

Additionally, technology can play a pivotal role. Automation, generative AI, and advanced analytics offer tools to bridge the measurement gap, enabling faster, more precise assessments of campaign impact. However, these tools require upfront investment and a commitment to shared data access between parties. This clearly poses particular problems for PR freelancers with limited resources and ability to defray this investment across clients. There is no easy answer to this.

Conclusion

The report underscores that meaningful change in remuneration requires more than new models—it demands a cultural shift. Both parties must prioritize defining, measuring, and aligning around business outcomes. Without this foundation, attempts to achieve equitable remuneration will remain fraught with inefficiencies and mistrust.

As the media landscape grows increasingly complex, the stakes for finding a fairer, more accountable system are higher than ever. By fostering transparency and investing in outcome-oriented strategies, freelancers and clients can unlock shared value and build partnerships that thrive in the modern marketing ecosystem.