Orange is to introduce payment by results (PBR) as an incentive for its newly appointed creative agency Lowe Lintas.
From this year Lowe Lintas, which in August snatched the pounds 50m mobile telecoms account from WCRS, will be offered incentive payments in the form of a percentage of a fee if the agency meets a series of criteria.
Tina Fegent, Orange purchasing manager for sales & marketing, said the criteria were likely to include the contribution of advertising to the company's overall performance and share price, as well as awareness of the brand and the agency's levels of service in managing the account.
Fegent said the agency would be measured against the criteria on a six-monthly basis and could stand to earn up to 50% on top of the agreed fee.
She added that the introduction of PBR for Lowe Lintas mirrored the agreement with Orange's media agency, Media Planning Group, which has been in place since last year and has proved 'productive'.
Fegent stressed PBR was not another tool to bash agencies with, but was being introduced in the spirit of partnership between agency and client and would lead to the relationship being looked at from both points of view.
Orange used guidelines issued jointly by the Institute of Practitioners in Advertising and the Incorporated Society of British Advertisers on how to adopt and manage a payment by results system