France Telecom-owned mobile phone network Orange will in future remunerate its agency, the London office of Lowe Lintas & Partners, on a results basis
Lowe Lintas, which snatched the £50 million account from WCRS last August, will be paid a fee geared to a range of client-imposed criteria – including “the contribution of advertising to the company's overall share price”.
According to Orange purchasing manager Tina Fegent, the scheme could see Lowe Lintas earning up to 50% more than its basic fee. A similar arrangement is successfully in place with Orange’s media planning/buying shop, the Media Planning Group.
Ms Fegent omitted to explain the precise formula by which “the contribution of advertising to the company's overall share price” would be calculated.
News Source: CampaignLive (UK)