Havas is acquiring Revenue Frontier, a direct-response company that aggregates media distribution through television and radio and distributes direct-response content primarily on a pay-per-order basis.
Revenue Frontier's key selling point is how its business model comes with "zero risk" since its Cost Per Acquisition (CPA) business model works by forgoing cash advances. No money exchanges hands until there are calculable sales or leads. Instead, Revenue Frontier charges a predetermined “bounty” per order or lead post sale.
The Santa Monica-based Revenue Frontier will report into Havas Edge, the holding company's direct-response agency
"Innovation is key for us, and our targeted acquisition strategy focuses on agencies with innovative, forward-looking tech approaches that enable us to anticipate client needs," said Yannick Bollore, chairman and CEO of Havas. "Together with Havas Edge, Revenue Frontier will help us strengthen our already first-class direct-response offer and maximize results for our clients."
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Revenue Frontier delivers long- and short-form television content in both English and Spanish to more than 50 million homes via satellite or remotely deployed servers. Clients of the 20-year-old agency include Anchor Bay Entertainment, yoga/fitness company Gaiam, Beachbody, Guthy-Renker and distribution affiliates like DirecTV, Dish, Comcast, Time Warner, Charter, Cox, U-verse.
Revenue Frontier generated $6.2 million in revenue in 2013.
Terms of the deal were not disclosed, but it underlines Havas' current course to grow through small- to mid-sized acquisitions. Havas spent more than $27 million to acquire several agencies in 2013, centered around the holding company's acquisition strategy to build on its digital, technological and creative strengths.