DigitasLBi is exploring a more value-driven approach to remuneration through upcoming work for the UK’s largest car-sharing business Liftshare, a model it hopes entices other advertisers looking for stronger commercial creativity.
The long-term deal will see the car sharer seal its place in the agency’s portfolio.
Instead of being charged a retainer like on a traditional account, DigitasLBi will receive a portion of any revenues generated through consumer bookings. The digital shop has tested value and risk-driven incentives previously; both are areas in which it has dabbled in the past and hopes to do more of moving forward.
The aim is to transform the DigitasLBi business model in a market where agencies are having to evolve their offerings to secure a share of marketing budgets that are fast being swarmed by alternative digital technology providers and management consultancies. It reflects a wider realisation among marketers that long-term outcomes, not just campaigns, should be the frame of reference for rewarding agency projects.
Anil Pillai, UK chief executive of DigitasLBi, said: “We’re always looking for new ways of making our commercial framework more flexible in order to add value for our clients, and over the years we’ve been involved in a number of performance-based deals, but never to this level. As one of the first ever ‘sharing economy’ brands, we believe Liftshare has real potential to become a household name. We’re looking forward to working with them to transform the way people travel.”
Liftshare hopes to grow its 400,000-strong community by exploiting the sharing popularity, popularised by companies such as Airbnb, to appeal to those environmentally conscious drivers looking to help the environment.
Previously Pillai told The Drum the agency was increasingly coming up against management consultancies in pitches, describing the development as a "turf war".