Agency Business

#14: Navigating Media’s Pricing Dilemmas With Kate O’Brien

4 snips
Mar 24, 2025
Kate O’Brien, founder of Powers of Reasoning and a former executive at Omnicom Media Group, delves into the complexities of media compensation models. She shares her insights on balancing senior talent with client demands for efficiency, emphasizing transparency in media buying. The conversation highlights the tension between performance-based models and creating genuine partnerships. Kate also discusses the impact of recent leadership changes at GroupM and the evolving dynamics of agency-client relationships, shedding light on how agencies can adapt to economic uncertainties.
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ANECDOTE

Kate's Career Pivot Anecdote

  • Kate O'Brien shared how a LinkedIn message from Scott Hagedorn helped pivot her career from creative to media data and strategy.
  • This led her to roles at Omnicom agencies like Hearts & Science, blending creative thinking with data and media.
ADVICE

Three Levers for Performance Contracts

  • Use three performance levers in scopes: what the agency controls, what the client controls (like surveys), and market-controlled outcomes.
  • This simplifies contracts and aligns focus on business results rather than just people hours.
INSIGHT

Reality of Principal Buying

  • Non-disclosed principal buying involves risk-taking and is complex to fully disclose due to data volume and costs.
  • Proper tracking and technology allow performance management even in non-disclosed models, combining savings and effectiveness.
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