In a bid to develop the digital advertising market, media agency Lintas Media Group and digital agency Pinstorm are collaborating to offer a pay-for-performance model.
Details of pay-for-performance deal were not disclosed
MUMBAI: In a bid to develop the digital advertising market, media agency Lintas Media Group and digital agency Pinstorm are collaborating to offer a pay-for-performance model for digital platforms like the internet and mobile phones. This will mean that the client will pay for the advertising only if the campaign meets pre-determined targets which could be in terms of the number of clicks, impressions or conversions. The creative would be developed and media bought by agencies at their own risk.
The two firms are aiming at an incremental Rs 100 crore revenues through the initiative.
Lynn de Souza, director, media services, Lintas, said: “We have already started work on the model with Pinstorm March 1 and no less than seven clients have already expressed interest and have got back to us. I cannot reveal all the names but Dr Batra’s is one of them.”
Mahesh Murthy, founder, Pinstorm, said: “We are trying to bring accountability, transparency and trust in to the digital medium in India. The idea is to bring the share of digital in the total Indian advertising scene to the tipping point of 7% from its current levels of 3-4%. 7% is a level from which it shot up to 20% in markets like the UK.”
The two companies refused to reveal the financial details of the partnership but said that the tie-up did not have any transfer of equity.
The pay-for-performance model is a departure from the traditional commission based or fee-based model which has been followed by advertising and media agencies.
Search giant Google popularised the format through which clients pay only if a person clicks on the link in their paid search results. Almost all revenues for the internet behemoth comes from such paid advertising.
According to projections, digital advertising in India is expected to grow more than 66% from the Rs 600 crore levels in 2007 to touch more than Rs1,000 crore this year.
The firms also said that once better performance-monitoring metrics are developed for traditional media, they would widen the horizons for the pay-for-performance model.
Lynn de Souza said: “The current TV ratings are a sham. Over time we want to move such a model into non-digital media, too, with technologies like IPTV coming which can offer similar performance metrics.”
n_john@dnaindia.net
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