Magazine article Marketing

Advertisers Prepare to Fund Agency Pitches

Magazine article Marketing

Advertisers Prepare to Fund Agency Pitches

Article excerpt

Many advertisers are taking a more generous approach to paying agencies for pitches than their industry body which recommends payment for "second stage creative pitches only".

"When agencies are just touting for business it would not be right to pay. But when they have done creative work, a payment is justifiable," says ISBA director general Kenneth Miles this week.

Although some clients see pitch costs as a legitimate part of agency overheads, many that Marketing spoke to this week say they already do contribute to costs or that they would be prepared to finance legitimate out-of-pocket expenses.

"It has long been our policy when we invite agencies to pitch, to reimburse the losers," says John Cheese, personal sector marketing director at Barclays Bank.

He criticise advertisers that use pitches to obtain free consultancy advice. "It is inappropriate and unethical and anyway you don't get good advice on the cheap."

His view is supported by Neil Mancais, marketing development manager at JVC. "We ask agencies to provide a pitch quotation for the costs of story boards and so on, especially if it is only a small commission. If it was a big account we would pay for the pitch to show we weren't wasting time. …

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