From Partners to 90-day Probation: Are India's ad agencies losing ground in client negotiations

OMD India recently won the media planning and buying mandate for Muthoot Finance- but not in the traditional sense. The assignment is for a single quarter (Q2 FY26), after which the brand will decide whether to continue based on performance.

It’s not just a project, it’s a probation. A trial period!

This isn't a one-off experiment. It's a growing trend, say experts, where brands are opting to “test-drive” agencies, giving them three to six months to prove their worth before committing to longer-term retainers. And industry veterans say it signals not just evolving business models, but the collapse of trust between agencies and clients.

“It’s a cruel twist of fate that one of our most iconic ad lines—‘pehle istemaal karein, phir vishwas karein’—has come back to haunt us,” says Soumitra Karnik, independent creative consultant. “This isn’t just a performance test; it’s a sanctity test. Clients aren’t just watching how well agencies perform, but how cleanly.”

Karnik’s comments are grounded in hard truths. The trust deficit in the agency ecosystem, exacerbated by the recent CCI investigation into cartelised media buying among global agency networks, has cast a long shadow. “Senior-most leaders allegedly rigging prices via WhatsApp groups—what more proof of institutional rot does one need?” he adds.

A Hostage Situation, Not a Partnership

The 90-day trial model is framed as accountability. In practice, it’s pressure without perspective.

In such arrangements, strategy gives way to survival. Agencies over-optimise early visibility, inflate KPIs, and cherry-pick data to appear high-performing. The focus isn’t on brand impact but on short-term metrics— click-throughs, CPIs, CTRs. Numbers that impress on paper, but say little about long-term brand health.

“This is a total mismatch,” says Karnik. “Clients want fire in the belly, creative courage, and fresh thinking—but give zero trust, time, or space. It’s a hook-up model where love is impossible.”

“Earlier, agency relationships were like Test matches—long-term and strategic. Then came the ODIs and T20s. What we’re seeing now feels like T10—short bursts with little time to create impact. Honestly, when smaller brands with limited budgets tried short-term deals with agencies, it was understandable. But when a reputed client like Muthoot Finance does this, it’s surprising," points out a senior media planner.

For larger brands, a three-month partnership is simply not enough to assess agency performance. The agency needs time to understand the brand, develop media strategies, and drive meaningful results—whether it's market share or awareness. Media cost efficiency can be evaluated in the short term, but brand impact takes longer, he adds.

"If an agency is only brought on for a quarter, it’s unlikely to invest in a dedicated team or resources. Instead, they’ll stretch existing staff — putting pressure on people and compromising delivery. This kind of arrangement is counterproductive. It creates pressure without providing the space or time to deliver."

The Downward Spiral of Transactional Thinking

A senior marketing leader speaking off the record, calls it a downward spiral—“on both the client and agency sides.”

“Short-term mandates don’t allow for dedicated teams or deep understanding. Agencies stretch existing resources, and the output suffers. You can’t build strategic outcomes on tactical timelines.”

The executive says this model is particularly common among brands that aren't present throughout the year. “But when large, reputed clients adopt it, it sets a dangerous precedent. This trend devalues relationships, talent, and long-term thinking.”

When the Pitch Becomes the Product

Sowmya Iyer, Founder & CEO of DViO Digital, acknowledges the pragmatism of such arrangements in volatile markets, but warns of their creative cost.

“A 90-day trial can reward speed over depth. The pitch becomes the product, not the entry point. It forces agencies to prioritize short-term wins over strategic brand-building.”

She argues that real impact takes time. “Trust, cultural chemistry, and creative intuition cannot be trialed like tech platforms. Relationships don’t scale under suspicion.”

Worse still, smaller agencies are being squeezed out of the game entirely. With big agency networks accused of price-fixing and media rate manipulation, the playing field is anything but level.

“Even if a smaller agency brings sharper insights or more agile strategy, they can’t compete on CPMs,” says Karnik. “They will go to anyone who offers a better rate and on occasions, even pocket a slice of the 'volume discount' in return. Hand on heart, is there even a single small agency left that believes programmatic democracy exists for them today?”

“We’ve Normalised the Broken”

The bigger problem, industry voices agree, is normalisation.

“Every time an agency accepts a broken model, we reinforce it,” says Karnik. “We’ve gone from trusted consultants to fixers—opportunistic and disposable. The industry’s moral compass is spinning.”

Tarun Rai, Co-Chairman at Start Design Group, shares the concern. “I started my career in advertising when a 'pitch' meant sharing the agency's credentials. More recently, however, huge amounts of time and resources were being spent on full-blown pitches. At the end of which, though, the client awarded the business to the successful agency.

Awarding the business on a trial basis is a new one. Makes no sense either for the agency or, in fact, for the client. I thought a visit to the agency's office and 'chemistry meetings' with the actual team was what was done for reassurance before signing up."

Not Every Business Can Be Trialed

From a brand consultancy lens, Landor India’s Growth and Marketing Director Meenaz Shamim calls the trend incompatible.

“Our work involves repositioning global brands, building identity systems, and defining purpose. It’s not transactional. A 90-day trial is not only inadequate—it’s counterproductive.”

Shamim advocates for paid strategic immersions or scoped projects to assess compatibility, rather than dangling uncertain timelines over strategic mandates. “The trial model fosters shallow KPIs and undermines the long-term vision brands need.”

The Verdict: A Crisis of Courage

As agencies continue to bow to this new model, many believe it’s time for collective pushback.

“Agencies aren’t vendors,” says a senior brand executive. “They’re partners in brand-building. If we let clients reduce us to quarterly contractors, we’ve failed to defend the value of what we bring.”

Karnik doesn’t mince words either. “This is match-fixing. And just like cricket had to clean house, the ad industry must too. Enough of the self-congratulatory panels and cause-driven campaigns. Let’s name names. Suspend the corrupt. Reclaim our credibility.”

If this turns into a trend— where more clients demand quarterly partnerships, it would be damaging. Agencies might feel compelled to accept such deals just to stay competitive. But at an industry level, this needs pushback. Agencies must come together and say no to such short-sighted arrangements, suggests a senior media planner.

In a market obsessed with measurement, the real test may not be agency performance but the industry’s ability to stand up for its value, clean up its practices, and rebuild trust before the 90-day clock runs out.