Start-up agency Banjo Advertising has won the creative and media planning business for 1300 Flowers, also agreeing to be paid based on business performance and sales by it new client.
Banjo has agreed to be paid a small monthly fee, but with the majority of its remuneration from the online florist’s $8 million advertising account being based on sales. It will handle the company’s creative business, previously held by De Pasquale, across all channels including digital, traditional and above the line as well as media planning. The media buying is understood to be headed by Mitchell Communication Group.
Andrew Varasdi, managing partner of the John Singleton-backed agency, said the unique remuneration deal is not risky and presents opportunities for both parties.
“We certainly believe that one of the opportunities for the future is to more closely align remuneration with sales and business performance,” he said, adding: “If you get it right and it takes off, there’s a hell of a lot of upside [to the deal].”
The small size of the agency, which is currently a team of eight, means they felt comfortable taking this approach.
“We’re a small agency, we don’t have huge overheads or shareholder expectations and we have more flexibility in the way we can structure things than some of the bigger agencies,” Varasdi said.
The agency will be working on its first creative projects for 1300 Flowers in the new year.
