Advertisers urged to pay agencies to pitch – and don’t make it an ‘insulting’ amount
The industry body for Australia’s major advertisers has for the first time offered advice to its members accepting the principle that agencies should be paid to pitch.
In its newly updated How To Manage A Pitch Guide for members, the Australian Association of National Advertisers suggests that when a full creative pitch is called, agencies should have their costs covered. However, it does not go as far as urging that agencies should always be paid to pitch.
It also advises clients against offering a token or “insulting” amount.
The guide has been based on input from members and advice from the World Federation of Advertisers.
Like agencies have enough backbone to do it! There is way too much desperation in the market place to consider pride!
I asked my accountant to pitch for free and billed me $50 to say piss off.
“…most agencies seek to recover development costs of strategic and creative submissions and expect that all out of pocket expenses will be covered”?
Not in my lifetime and I’ve been around the block more times than many. Most agencies would LOVE to recover developmental costs and all associated 3rd party expenses (not just tangible assets) but I’ve only ever seen a token amount paid for a pitch (under 5 figures) which was desperately, gratefully received. And asking the agency to set its own pitch budget – as bad as the brief that says “Budget TBA” (i.e. you tell me how much you want and I’ll give you a third of that if you’re lucky).
I think pitch payment is a marvellous recommendation, but don’t imagine all clients will agree. I guess it’s a long road but glad the first step’s been taken.
hear hear!
HUH? “The industry body for Australia’s major advertisers has for the first time offered advice to its members accepting the principle that agencies should be paid to pitch.” Come on! I hardly think it’s THE FIRST TIME! This is something that’s been talked about for at least 30 years and probably a whole lot longer. Remember also the Honda pitch in MadMen? But unlikely ever to change much. What’s the price/value of an idea?
@Paul – priceless (apparently)
” … compensating agencies for pitches is a valuable gesture of goodwill and would indicate to agencies that you are after a lasting and mutually beneficial partnership.”
Kind of like when you pay for a hooker.