Marketing budgets are under scrutiny as economic headwinds push agencies to cut costs. While traditional ad agencies trim staff and retreat during downturns, one firm is charting a different course. Revenue Arc, a California-based alternative to the standard agency model, provides a full digital buying team to agencies without charging a single dollar in management fees, retainers, or minimums.
Instead, the company operates on a revenue-share model. Revenue Arc earns by partnering with ad-tech and data providers — and then passes part of that revenue back to its agency partners. The result is a counter-cyclical approach: agencies gain access to an experienced team for Programmatic, CTV, YouTube, and Meta buying at zero cost, while simultaneously opening a new profit stream during a time when margins matter most.
The mechanics are simple but powerful. Agencies that work with Revenue Arc no longer need to carry the overhead of in-house media buyers or outsource to expensive third parties. By shifting a portion of ad budgets — for example, moving 10–20% of linear TV spend into connected TV (CTV) through Revenue Arc — agencies see measurable improvements in conversion performance.
And unlike many partners who profit only from fees, Revenue Arc shares back a portion of its revenue with the very agencies it supports. This transforms what is usually a line-item expense into an unexpected source of income. At a time when CFOs are tightening belts, the model gives agencies both breathing room and the ability to defend client campaigns.
Why Recessions Strengthen the Model
Traditional agencies contract in recessions, but Revenue Arc is designed to grow in them. With no fees or retainers to justify, agencies are free to keep campaigns live while simultaneously lowering their own operational burden. The downturn becomes less of a threat and more of an opportunity: instead of losing staff and clients, agencies expand their capabilities with zero additional cost.
For clients, this means campaigns stay active, optimized, and driving results rather than frozen or cut altogether. For agencies, this means delivering performance without incurring additional payroll or fixed costs.
Founder’s Edge: Andrew Barrow’s Career in Ad-Tech
The innovative model is backed by the experience of Revenue Arc’s founder, Andrew Barrow. A digital advertising veteran, Barrow has been immersed in the field since building his first website on Geocities at age 12. His career has spanned both agency and ad-tech sides of the business, including leadership roles at major holding companies and work with global brands such as Best Western, The Home Depot, Verizon, Universal Pictures, and Focus Features.
Beyond client-side experience, Barrow has also held key roles at ad-tech and publishing giants like MediaMath, Lonely Planet, Movio, and Penske Media Corporation, where he spearheaded partnerships and infrastructure improvements. Today, he channels that background into Revenue Arc’s AI-driven growth platform, ensuring small and midsized businesses can access enterprise-level advertising strategies without prohibitive costs.
Outside of the boardroom, Barrow is equally committed to supporting entrepreneurs. He volunteers with the Small Business Administration’s SCORE program, leading monthly sessions on digital and AI-driven marketing. Based in Irvine, California, he balances his work as a founder with family life as a husband and father of two.
Challenging the Agency Status Quo
Revenue Arc positions itself as more than a service vendor. For agencies, it is effectively an invisible partner: a digital buying team that can even step into pitches and help close business. The zero-fee model allows agency executives to focus on client growth, strategy, and creatives while Revenue Arc handles the mechanics of media buying and optimization.
By blending AI-driven insights with strategic targeting and real-time campaign optimizations, the platform accelerates conversions. Agencies accustomed to fluctuating costs and fragile margins instead gain a stable partner designed to thrive during economic uncertainty.
As the advertising industry braces for tighter conditions, Revenue Arc’s model illustrates how nontraditional approaches can not only survive but also thrive in recessions. For agencies, it offers relief from overhead and a chance to reframe downturns as periods of growth. For clients, it ensures campaigns remain competitive and performance-driven without compromise.
In a market where efficiency is king, Revenue Arc is positioning itself as the recession-proof ad buying team that agencies didn’t know they could get for free.
Disclaimer: This article serves informational purposes only and does not constitute an endorsement or guarantee of specific outcomes. Always evaluate and test new tools and methods in the context of your specific business needs.
