Anomaly Loses A Client, But What About The Products?

Although I’m very fuzzy on how the compensation models are set up, I’ve been intrigued by agencies like Anomaly that have pursued other means of revenue than writing ads.
This story in Adweek mentions that Anomaly has lost Virgin America, but because of the unusual business arrangement, things sound complicated:

Virgin America’s split with the incumbent will take effect in January, said Jason DeLand, a partner at Anomaly.
“We decided to amicably part ways and wish them nothing but luck. We loved working on the business with them,” said DeLand. “The split was due, though, to taking away key business model opportunities where Anomaly could profit in a entrepreneurial way.”
Previously, Anomaly got a portion of the revenue generated by the sale of certain Virgin America products, on-board entertainment and entertainment sponsorships that the independent shop developed, DeLand said.

Can anyone shed some light on this? Does this mean Anomaly no longer will get money for “products” or other things they’ve created? Can you cut off a relationship like that just as easily as firing an agency?
This issue fits perfectly with the compensation issues I wrote about recently. If ad agencies get more involved in other parts of a client’s business, to the point of creating things that have a longer shelf-life than ads, who controls the revenue? If clients like Virgin America can pull the plug on an agency without warning, It certainly sounds like ad agencies would be discouraged from doing deals like this in the future.

About Dan Goldgeier

Blogging on AdPulp since 2005, Dan Goldgeier is a Seattle-based freelance copywriter with experience at advertising agencies across the U.S. He is a graduate of the Creative Circus ad school, and currently teaches at Seattle's School of Visual Concepts. In addition, he is a regular columnist for TalentZoo.com. Dan published the best of his TalentZoo.com columns in a book entitled View From The Cheap Seats: A Broader Look at Advertising, Marketing, Branding, Global Politics, Office Politics, Sexual Politics, and Getting Drunk During a Job Interview. Look for it on Amazon in paperback and e-book editions.

  • Maria

    BBH London and BBH NY are doing a similar thing with ZAG. I think they launched two things in the UK so far. Not sure what the compensation model is though, yet I bet it varies according to the deal.