The Invisible Drain: Why Tool Usage Creep is Silently Killing Your Margins

How agencies can measure Tool ROI, stop unbilled AI and software costs, and protect margins with transparent, project‑level tracking.

Modern creative and digital agencies run on their tech stack. From generative AI and analytics platforms to core SaaS, these tools are the engine of delivery.

Many firms still treat usage-based technology as fixed, non-billable overhead. That mindset creates an invisible drain on finances. Every time an employee spends paid AI tokens or runs a report through a pricey API for one client, the agency quietly subsidises that work.

The old cost model is broken. You cannot let tech costs scale with project complexity unless you tie that usage directly to the project ledger. To protect margins and quote with confidence, you must start measuring true Tool ROI for every digital resource you use.

The Status Quo Pain: Unbilled Tech Is a Constant Cash Bleed

The true cost of a deliverable is not only hours. Today, it is time plus technology.

As software spreads across teams, two problems quietly take over the Australian agency market:

  • Tool Usage Creep

  • Shadow IT

The tools meant to make you faster can make you poorer when their costs go untracked.

Why Your Project Costs Are Wrong

Tool Usage Creep happens when consumption of paid software rises without an auditable mechanism to bill for it. Generative AI accelerates this trend. Tools often bill by precise consumption metrics, like token counts. These usage costs are dynamic, unpredictable, and rarely captured by traditional project accounting.

Industry research finds that 72% of IT and financial leaders say GenAI-driven cloud spending is becoming unmanageable (https://www.tangoe.com/news/genai-and-ai-drive-cloud-expenses-30-higher-and-72-say-spending-is-unmanageable/). When AI becomes a core production tool, hidden token costs and cloud invoices rapidly erode profit. The cost is absorbed as a general expense, instead of being attributed to the project that generated the value.

The Operational Burden

According to Adobe research, 46% of Australian marketers spend over 40% of their time on administrative tasks, reviews, and approvals. This massive administrative overhead, caused by siloed tools, cannot be billed at full value.

Shadow IT is when teams use software subscriptions Finance does not track. Combine non-billable admin time with the invisible cost of unmanaged tools and you create an ongoing cash bleed.

Traditional agency data systems struggle to cope. Many Australian agencies grapple with a talent gap and legacy systems that make it difficult to unify data and measure true return on investment. If you cannot unify the data, you cannot trust the quotes.

Your biggest profitability leak is the unmanaged technology cost that never makes it onto the project record, leaving your agency to subsidise the client's success.

The Manifest Solution: Turn Tech Spend into Billable Line Items

The goal is not to stop using tools. It is to capture their full financial value. If technology fuels your efficiency, you need a clear gauge for how much “fuel” each project consumes. That is the promise of Manifest Tool ROI.

Manifest removes the invisible drain by tracking technology consumption and connecting it directly to your financial ledger. Automated tool tracking transforms your operations:

  • Direct usage capture: Integrates with core SaaS, GenAI, and cloud services to capture activity in real time. Measures precise consumption metrics such as API calls, AI token counts, storage utilisation, and active seat time.

  • Project allocation: Automatically maps and allocates usage to the correct client, project, and Statement of Work (SOW) in your finance system.

  • Cost precision: Calculates the exact dollar cost of that consumption based on your vendor agreements and pricing models, down to the last cent.

This shifts tool usage from a general cost centre to a precise, billable line item. You move from estimating "fixed overhead" to establishing an accurate cost-to-serve. Operations and Finance leaders get immediate savings and smoother operations.

Client success snapshot: After implementing Manifest's Tool ROI tracking, one mid-sized Australian digital agency identified an average of $3,500 in non-billed AI token and specialty software costs across five projects in a single quarter. That money went straight back to margin.

Stop letting surprise cloud invoices undermine GenAI initiatives. Manifest gives you the visibility to manage and monetise the innovation you fund.

Beyond the Feature: A Blueprint for Future Profitability

Manifest Tool ROI is more than tracking. It is a strategic lever that changes how you operate and how you quote. This clarity supports two critical outcomes: Quote with Confidence and Client Transparency.

  1. The strategic shift to confidence

    • Once every cent of software cost sits on the project, you stop guessing at margins and build a predictive cost blueprint for every future SOW.

    • GenAI efficiency is often difficult to monetise. By measuring an honest efficiency metric—how many tasks your team completes per hour, Manifest provides proof to support value-based pricing.

    • When you scope work, you know the stack you used, what it cost, and the efficiency it delivered on similar projects last quarter.

  2. Building unshakeable client trust

    • Clients expect transparency. PwC Australia reports 79% of customers are protective of their data. Clear tech usage is a competitive edge.

    • Share an itemised breakdown of costs, including the exact technology resources used. This reduces ambiguity and billing disputes and positions your agency as a partner that runs on predictable, auditable data.

Conclusion: Stop Subsidising and Start Owning Your Value

Treating consumption-based technology as non-billable office supplies does not work. Tool Usage Creep and Shadow IT are financial risks that erode profit and hold back Australian agencies.

The fix is simple: move from guessing your cost-to-serve to knowing it, down to the last AI token.

With Manifest’s automated tool usage tracking, you stop the cash bleed, reclaim lost margin, and capture the full value of the innovation you fund.

Take control of your agency’s future and book a 15-minute chat with the Manifest team today.

Want to read more?

Australian Marketing Teams Brace for More Than 5X Growth in Content Demand by 2027 (Adobe APAC)

https://news.adobe.com/en/apac/news/2025/09/australian-marketing-teams-brace-for-more-than-5x-growth-in-content-demand-by-2027

Is AI Paying Off? How to Prove AI ROI in 2025? (Vodworks)

https://vodworks.com/blogs/ai-roi/

How agencies can measure Tool ROI, stop unbilled AI and software costs, and protect margins with transparent, project‑level tracking.

How agencies can measure Tool ROI, stop unbilled AI and software costs, and protect margins with transparent, project‑level tracking.

Modern creative and digital agencies run on their tech stack. From generative AI and analytics platforms to core SaaS, these tools are the engine of delivery.

Many firms still treat usage-based technology as fixed, non-billable overhead. That mindset creates an invisible drain on finances. Every time an employee spends paid AI tokens or runs a report through a pricey API for one client, the agency quietly subsidises that work.

The old cost model is broken. You cannot let tech costs scale with project complexity unless you tie that usage directly to the project ledger. To protect margins and quote with confidence, you must start measuring true Tool ROI for every digital resource you use.

The Status Quo Pain: Unbilled Tech Is a Constant Cash Bleed

The true cost of a deliverable is not only hours. Today, it is time plus technology.

As software spreads across teams, two problems quietly take over the Australian agency market:

  • Tool Usage Creep

  • Shadow IT

The tools meant to make you faster can make you poorer when their costs go untracked.

Why Your Project Costs Are Wrong

Tool Usage Creep happens when consumption of paid software rises without an auditable mechanism to bill for it. Generative AI accelerates this trend. Tools often bill by precise consumption metrics, like token counts. These usage costs are dynamic, unpredictable, and rarely captured by traditional project accounting.

Industry research finds that 72% of IT and financial leaders say GenAI-driven cloud spending is becoming unmanageable (https://www.tangoe.com/news/genai-and-ai-drive-cloud-expenses-30-higher-and-72-say-spending-is-unmanageable/). When AI becomes a core production tool, hidden token costs and cloud invoices rapidly erode profit. The cost is absorbed as a general expense, instead of being attributed to the project that generated the value.

The Operational Burden

According to Adobe research, 46% of Australian marketers spend over 40% of their time on administrative tasks, reviews, and approvals. This massive administrative overhead, caused by siloed tools, cannot be billed at full value.

Shadow IT is when teams use software subscriptions Finance does not track. Combine non-billable admin time with the invisible cost of unmanaged tools and you create an ongoing cash bleed.

Traditional agency data systems struggle to cope. Many Australian agencies grapple with a talent gap and legacy systems that make it difficult to unify data and measure true return on investment. If you cannot unify the data, you cannot trust the quotes.

Your biggest profitability leak is the unmanaged technology cost that never makes it onto the project record, leaving your agency to subsidise the client's success.

The Manifest Solution: Turn Tech Spend into Billable Line Items

The goal is not to stop using tools. It is to capture their full financial value. If technology fuels your efficiency, you need a clear gauge for how much “fuel” each project consumes. That is the promise of Manifest Tool ROI.

Manifest removes the invisible drain by tracking technology consumption and connecting it directly to your financial ledger. Automated tool tracking transforms your operations:

  • Direct usage capture: Integrates with core SaaS, GenAI, and cloud services to capture activity in real time. Measures precise consumption metrics such as API calls, AI token counts, storage utilisation, and active seat time.

  • Project allocation: Automatically maps and allocates usage to the correct client, project, and Statement of Work (SOW) in your finance system.

  • Cost precision: Calculates the exact dollar cost of that consumption based on your vendor agreements and pricing models, down to the last cent.

This shifts tool usage from a general cost centre to a precise, billable line item. You move from estimating "fixed overhead" to establishing an accurate cost-to-serve. Operations and Finance leaders get immediate savings and smoother operations.

Client success snapshot: After implementing Manifest's Tool ROI tracking, one mid-sized Australian digital agency identified an average of $3,500 in non-billed AI token and specialty software costs across five projects in a single quarter. That money went straight back to margin.

Stop letting surprise cloud invoices undermine GenAI initiatives. Manifest gives you the visibility to manage and monetise the innovation you fund.

Beyond the Feature: A Blueprint for Future Profitability

Manifest Tool ROI is more than tracking. It is a strategic lever that changes how you operate and how you quote. This clarity supports two critical outcomes: Quote with Confidence and Client Transparency.

  1. The strategic shift to confidence

    • Once every cent of software cost sits on the project, you stop guessing at margins and build a predictive cost blueprint for every future SOW.

    • GenAI efficiency is often difficult to monetise. By measuring an honest efficiency metric—how many tasks your team completes per hour, Manifest provides proof to support value-based pricing.

    • When you scope work, you know the stack you used, what it cost, and the efficiency it delivered on similar projects last quarter.

  2. Building unshakeable client trust

    • Clients expect transparency. PwC Australia reports 79% of customers are protective of their data. Clear tech usage is a competitive edge.

    • Share an itemised breakdown of costs, including the exact technology resources used. This reduces ambiguity and billing disputes and positions your agency as a partner that runs on predictable, auditable data.

Conclusion: Stop Subsidising and Start Owning Your Value

Treating consumption-based technology as non-billable office supplies does not work. Tool Usage Creep and Shadow IT are financial risks that erode profit and hold back Australian agencies.

The fix is simple: move from guessing your cost-to-serve to knowing it, down to the last AI token.

With Manifest’s automated tool usage tracking, you stop the cash bleed, reclaim lost margin, and capture the full value of the innovation you fund.

Take control of your agency’s future and book a 15-minute chat with the Manifest team today.

Want to read more?

Australian Marketing Teams Brace for More Than 5X Growth in Content Demand by 2027 (Adobe APAC)

https://news.adobe.com/en/apac/news/2025/09/australian-marketing-teams-brace-for-more-than-5x-growth-in-content-demand-by-2027

Is AI Paying Off? How to Prove AI ROI in 2025? (Vodworks)

https://vodworks.com/blogs/ai-roi/

How agencies can measure Tool ROI, stop unbilled AI and software costs, and protect margins with transparent, project‑level tracking.

Modern creative and digital agencies run on their tech stack. From generative AI and analytics platforms to core SaaS, these tools are the engine of delivery.

Many firms still treat usage-based technology as fixed, non-billable overhead. That mindset creates an invisible drain on finances. Every time an employee spends paid AI tokens or runs a report through a pricey API for one client, the agency quietly subsidises that work.

The old cost model is broken. You cannot let tech costs scale with project complexity unless you tie that usage directly to the project ledger. To protect margins and quote with confidence, you must start measuring true Tool ROI for every digital resource you use.

The Status Quo Pain: Unbilled Tech Is a Constant Cash Bleed

The true cost of a deliverable is not only hours. Today, it is time plus technology.

As software spreads across teams, two problems quietly take over the Australian agency market:

  • Tool Usage Creep

  • Shadow IT

The tools meant to make you faster can make you poorer when their costs go untracked.

Why Your Project Costs Are Wrong

Tool Usage Creep happens when consumption of paid software rises without an auditable mechanism to bill for it. Generative AI accelerates this trend. Tools often bill by precise consumption metrics, like token counts. These usage costs are dynamic, unpredictable, and rarely captured by traditional project accounting.

Industry research finds that 72% of IT and financial leaders say GenAI-driven cloud spending is becoming unmanageable (https://www.tangoe.com/news/genai-and-ai-drive-cloud-expenses-30-higher-and-72-say-spending-is-unmanageable/). When AI becomes a core production tool, hidden token costs and cloud invoices rapidly erode profit. The cost is absorbed as a general expense, instead of being attributed to the project that generated the value.

The Operational Burden

According to Adobe research, 46% of Australian marketers spend over 40% of their time on administrative tasks, reviews, and approvals. This massive administrative overhead, caused by siloed tools, cannot be billed at full value.

Shadow IT is when teams use software subscriptions Finance does not track. Combine non-billable admin time with the invisible cost of unmanaged tools and you create an ongoing cash bleed.

Traditional agency data systems struggle to cope. Many Australian agencies grapple with a talent gap and legacy systems that make it difficult to unify data and measure true return on investment. If you cannot unify the data, you cannot trust the quotes.

Your biggest profitability leak is the unmanaged technology cost that never makes it onto the project record, leaving your agency to subsidise the client's success.

The Manifest Solution: Turn Tech Spend into Billable Line Items

The goal is not to stop using tools. It is to capture their full financial value. If technology fuels your efficiency, you need a clear gauge for how much “fuel” each project consumes. That is the promise of Manifest Tool ROI.

Manifest removes the invisible drain by tracking technology consumption and connecting it directly to your financial ledger. Automated tool tracking transforms your operations:

  • Direct usage capture: Integrates with core SaaS, GenAI, and cloud services to capture activity in real time. Measures precise consumption metrics such as API calls, AI token counts, storage utilisation, and active seat time.

  • Project allocation: Automatically maps and allocates usage to the correct client, project, and Statement of Work (SOW) in your finance system.

  • Cost precision: Calculates the exact dollar cost of that consumption based on your vendor agreements and pricing models, down to the last cent.

This shifts tool usage from a general cost centre to a precise, billable line item. You move from estimating "fixed overhead" to establishing an accurate cost-to-serve. Operations and Finance leaders get immediate savings and smoother operations.

Client success snapshot: After implementing Manifest's Tool ROI tracking, one mid-sized Australian digital agency identified an average of $3,500 in non-billed AI token and specialty software costs across five projects in a single quarter. That money went straight back to margin.

Stop letting surprise cloud invoices undermine GenAI initiatives. Manifest gives you the visibility to manage and monetise the innovation you fund.

Beyond the Feature: A Blueprint for Future Profitability

Manifest Tool ROI is more than tracking. It is a strategic lever that changes how you operate and how you quote. This clarity supports two critical outcomes: Quote with Confidence and Client Transparency.

  1. The strategic shift to confidence

    • Once every cent of software cost sits on the project, you stop guessing at margins and build a predictive cost blueprint for every future SOW.

    • GenAI efficiency is often difficult to monetise. By measuring an honest efficiency metric—how many tasks your team completes per hour, Manifest provides proof to support value-based pricing.

    • When you scope work, you know the stack you used, what it cost, and the efficiency it delivered on similar projects last quarter.

  2. Building unshakeable client trust

    • Clients expect transparency. PwC Australia reports 79% of customers are protective of their data. Clear tech usage is a competitive edge.

    • Share an itemised breakdown of costs, including the exact technology resources used. This reduces ambiguity and billing disputes and positions your agency as a partner that runs on predictable, auditable data.

Conclusion: Stop Subsidising and Start Owning Your Value

Treating consumption-based technology as non-billable office supplies does not work. Tool Usage Creep and Shadow IT are financial risks that erode profit and hold back Australian agencies.

The fix is simple: move from guessing your cost-to-serve to knowing it, down to the last AI token.

With Manifest’s automated tool usage tracking, you stop the cash bleed, reclaim lost margin, and capture the full value of the innovation you fund.

Take control of your agency’s future and book a 15-minute chat with the Manifest team today.

Want to read more?

Australian Marketing Teams Brace for More Than 5X Growth in Content Demand by 2027 (Adobe APAC)

https://news.adobe.com/en/apac/news/2025/09/australian-marketing-teams-brace-for-more-than-5x-growth-in-content-demand-by-2027

Is AI Paying Off? How to Prove AI ROI in 2025? (Vodworks)

https://vodworks.com/blogs/ai-roi/

Ready to see your true cost-to-serve?

Ready to see your true cost-to-serve?

Ready to see your true cost-to-serve?