What: WPP’s Xaxis has launched a pay-for-performance media model called Light Reaction.
Why it matters: As performance marketing currently assumes about 10% of Xaxis’ more than US$700 million business, the new business is expected to outmatch its other revenue streams.
WPP’s Xaxis has launched a pay-for-performance media model called Light Reaction.The new mobile-first performance advertising business will be rolled out across 20 markets across North America, Europe, Asia and the Middle East.The company expects the new unit to outmatch its other revenue streams.
Light Reaction will be led by general manager Paul Dolan, who previously served as executive vice president, general manager, performance marketing at Xaxis.The new business aims to guarantee pricing, bound customer outcomes such as sales, leads and downloads.
“We’ve developed a model for performance marketing that allows brands to meet precise objectives of customer response while drawing a direct line between ads and results,” said Dolan.
“We see this part of the business growing as rapidly if not more than the business we already built within Xaxis,” said Xaxis CEO Brian Lesser.
One example of work Light Reaction has done is German retailer Walbusch, where it was tasked with the specific outcome of driving new customer sales. Light Reaction’s campaign increased new customer sales by 17 %, while decreasing new customer acquisition costs by 8%. According to the agency, this was under Light Reaction’s pay-for-performance model and the client only paid for directly attributed new customer sales.
Light Reaction’s platform was created after Xaxis’ acquisition of ActionX combined with GroupM’s QUISMA tool and Xaxis’ own Turbine.
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