The big debate : Why clients should pay agencies to pitch , and why they won ’ t ( cont . d ) Why clients can ’ t pay
The big debate : Why clients should pay agencies to pitch , and why they won ’ t ( cont . d ) Why clients can ’ t pay
• Financial constraints on the part of the client . Especially in the era of zero-based budgeting , where clients have to figure out how much they think they can achieve in the year ahead , in terms of strategic objectives and what those objectives are worth in financial terms , plus , how much the tactical efforts to deliver those objectives will cost by year ’ s end .
• Several agencies are willing to throw themselves at brand managers , even go begging hat-in-hand for an opportunity to serve . This desperation means not all agencies will demand Pitch fees . Some in Nigeria may even be willing to pay so they ’ d be invited to pitch . No , not just Nigeria . A University in Singapore had indeed asked agencies to pay for a copy of pitch materials and for the chance to be included in the pitch .
• Lack of understanding on the client side about the true cost of pitching . An ISBA and IPA UK research from 2013 shows that while it costs agencies around £ 178,000 on average to take part in a large international pitch , clients believe it costs only around £ 31,000 . To put this in context , most clients think agencies spend a 6 th of the actual cost of putting together that sexy power point presentation with all its grand ideas and genius tactics . SMH .
• The problem of Intellectual Property ownership . There continues to be disputes within the marketing and communications industry about who should own the Intellectual Property ( IP ) of any pitch – the agency or the client .
• Even if brand managers appreciate a good pitch , the bosses who sign the cheques will only respond once they see the creative output of the pitch process . Many firms at different stages of maturity don ’ t recognise what they ’ re missing out on , and the value of an agency ’ s new ideas until they see the output of the pitch .
• The decision to hire an agency is never always about ideas only . The decision to hire is also about agency experience , their credibility and their fit with the client ’ s brand team .
A good guide for best practices on the agency pitch process is provided by ISBA & IPA ( UK ’ s trade bodies on marketing communications ) via thegoodpitch . com What do you think ? Are you convinced by either side ? Do share your thoughts in the comments section .
Credits : FEMI FALODUN Read more ...