Post the acquisition of WebPercept in April 2007 and creating a new brand identity, id8 Labs has made significant progress in terms of clients and technology. In an age where digital is the rage and CPAs and CPCs hog all media presentations and discussions, id8 Labs attempts to be different and innovative with its ‘cost per performance’ model – a revenue model in which the client pays based on performance.
Elaborating more about the recent developments at his company, Amit Tripathi, CMD, id8 Labs, said that Intentias, the media arm of id8 Labs, had picked up nearly nine AoRs (agency on records) post the acquisition of WebPercept.
Elaborating on the business model for Intentias, Tripathi said, “On a media AoR format, agencies usually work on an agency commission model. We don’t work on that model. The entire format of working is completely Pay-per-Performance. We usually hear this for search based marketing, but never when you do the entire media.”
Explaining further, he said, “The models used generally are CPC (Cost per Click) and CPT (Cost per Thousand impressions), but we have gone a step ahead with CPA (Cost per Acquisitions) and CPS (Cost per Sales). In CPA, our fees are based on the leads generated by us and the media optimised by us. Hence, the revenues that Intentias would make would be completely based on how we successful have been in managing the campaign, the profit side, and the sales side of the entire campaign.”
Citing examples, Tripathi spoke about the exercise undertaken for Go Air, which had a mandate of increasing ticket sales and not brand awareness. “Most of the times you can hear arguments that you cannot do branding on the Internet, but only transactions. I personally believe it’s a myth, you can do both. We have successfully done both with a two-pronged approach for Go Air – one was branding and the other was sales. In effect, we dropped the cost of acquisition, it’s in single digits, but it’s fairly high. We are absolutely sure that by the end of a year with the client, the savings that we would have brought to them on account of the transactions that we have been doing would be phenomenally high. It would be in double digits,” he claimed.
Meanwhile, the company is also working on creating its own analytical platform, ‘icogz’, which will be focused on monitoring and managing campaigns. Throwing more light on this, Tripathi said, “We have created this tool that will help in understanding the behavioural patterns of a user, from the moment he clicks on a link or visits a page, so that we can justify to the client that the connect created with that user is not temporary. We know that there are Internet audiences across India, but the challenge is how we get the right guys to the right place at the right time at the right cost. It’s easy to blow up lakhs of rupees on the Internet in a day, but will it give value to a client, I don’t know. Which is where you need to quantify and qualify the media spend through scientific tools.”
Post the recent acquisition of eDesign Tree franchise in India, id8 Labs now has presence in Bangalore and is also planning to launch it’s own operation in Delhi.