Social Rocket
The US creative agency ImaginaryFriend holds six percent of the DTC meat label Papi Ranch. Instead of billing all the work under the usual agency model, it accepts reduced fees and receives a stake in the company in return. For the advertising industry, the deal is interesting: the agency earns not only from the campaign but also takes part in the possible success of the brand it is building itself.
From creative commission to entrepreneurial role
Papi Ranch is the new direct-to-consumer project of restaurateur David "Papi" Einhorn. According to its own statements, the agency ImaginaryFriend developed the name, the brand identity, the packaging and an extensive social media campaign. Film, photography and the visual world for the online shop come on top of that.
The presence is meant to look less like an ordinary meat delivery service and more like a lifestyle brand: carefully staged products, eye-catching packaging, a membership offer and the so-called Beefcase as a distinctive product motif. According to reporting at the launch, the range now includes more than 70 cuts.
This gives ImaginaryFriend major influence over almost every point of the customer journey, from the first encounter with social content through product presentation to the purchase. A conventional campaign agency would receive fees for these services and move on to the next client once the project ended. ImaginaryFriend additionally bets that brand building will create long-term company value.
Social content becomes an investment
The six percent stake also changes the questions an agency has to ask. A creative that generates many views is then no longer enough as proof of success. What matters become repeat purchases, margins, customer loyalty and the cost of acquiring customers. Social media remains the entry point, but not the sole goal.
This fits a broader shift in marketing: TikTok Shop agencies are becoming commerce specialists with their own infrastructure, while creators increasingly build their own companies instead of single advertising posts. In both cases, revenue models are shifting away from an isolated service toward the economic development of a business.
ImaginaryFriend is taking its own path here. The agency does not merely develop creatives for a retailer but becomes a small part of the retailer itself.
What a stake means for both sides
For young brands, such a contract can make high-quality strategy and production possible without having to pay all costs up front in cash. For the agency, it opens a second source of income beyond retainers and hourly rates.
To do this, both sides have to talk earlier about topics that otherwise tend to appear in investor agreements: valuation and dilution of shares, decision-making scope, usage rights for creatives, further funding rounds and a possible exit. If growth is weak, the agency bears part of the risk itself.
The model is also interesting as a negotiating approach in Germany. Agencies that practically co-develop a young brand from the ground up can consider a combination of fee and success share. What matters is a clean contract, a topic that goes beyond the new contract and AI clauses in agency relationships.
Why the deal deserves attention
Papi Ranch is still young; whether ImaginaryFriend's stake pays off economically will only become clear in operation. The current news value lies in the business model: an agency turns its own creative contribution into part of an entrepreneurial bet. Social campaigns, positioning and e-commerce are no longer separate assignments but building blocks of a shared brand development.
Sources: ImaginaryFriend, official Papi Ranch portfolio · ADWEEK, report on the 6-percent deal from 5 November 2026 · Little Black Book, background on the brand launch · MediaPost, DTC sales and agency services