AANA releases ‘How to manage a pitch guide’
AANA has released an updated “How to Manage a Pitch Guide” to help members organise, conduct and conclude an effective pitch process.
The Guide benchmarks against world best practice. It has been updated with input from AANA members and global best practice, as determined by the World Federation of Advertisers.
Says AANA CEO, Scott McClellan: “In some circumstances it may be appropriate for advertisers to pay the agency for the work they have done in the course of a pitch. For the first time, AANA’s Pitch Guide for members maps out when and how this should be done.”
The Guide also provides alternatives when a full pitch is not the best solution. By putting the advertiser interest at the center of the pitch process, the Guide aims to help advertisers find the agency (or agencies) that best fit their needs, while operating in a spirit of fairness.
McClellan adds: “Conducting a pitch can be a time-consuming and expensive process both for advertisers and agencies. This comprehensive Guide leads advertisers through the process step-by-step, allowing for effective planning and a smooth process.”
The Guide also contains sample templates for key documents that will be required during the pitch, including briefs and evaluation score sheets.
“Most advertisers are looking for a productive, long term relationship with their agencies, and a positive pitch process is the best way to get off to a good start. This guide was developed with the aim of improving the client-agency relationship,” McClellan concluded.
**Excerpt from the AANA “How to Manage a Pitch Guide”
Determining fair compensation for pitching
Advertising agencies rarely give away their best ideas, nor should they be expected to However, pitching for business is an important component of business development and a normal cost of business. Paying agency fees for their participation in the pitch process should be considered if:
The process is complex, extended and requires an investment in external, out of pocket costs for the agency eg. Multiple rounds of strategy or creative, a requirement of producing anamatics or fully finished commercials and advertisements etc.
There is a requirement for agencies to assign any or all of their intellectual property rights to the advertiser as a condition of their participation in the process.
This gives good reason for consideration of who should pay for what in relation to the meeting stages of the pitch process.
In setting the level of payment it is important to consider the commercial cost of what is required of the agency. Too low and it appears tokenism and insulting.
However, from a relationship building perspective, 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.
Agencies are generally enthusiastic to accept opportunities to present their credentials at no cost. However most agencies seek to recover development costs of strategic and creative submissions and expect that all out of pocket expenses will be covered.
While strategic advice carries a value deserving recognition if not full recompense, the full creative pitch is particularly time-consuming and costly. Both can run into tens of thousands of dollars even without inclusion of agency employee hours. In current practice, most agencies expect to negotiate cost recoveries where the pitch request extends beyond the basics of layouts or storyboards to the likes of audio tracks, original music or test Internet site work.
If the advertiser elects for a full creative pitch, the advertiser will need to decide between:
Advising a set budget to each agency; or
Requesting a budget from each agency
While the first course may appear the fairest as well as proving the most convenient, the second is less likely to inhibit the scope of the creative elements featuring in the pitch presentations The advertiser’s consideration could be influenced by other factors, including questions of whether there is enough:
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