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...