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Advertising News South Africa

Agencies should bill for pitches - Ad industry to stop turning the other cheek

Agencies should collectively insist on being paid for pitches. That's the view of John de Bruyn, CEO of Cape Town advertising agency JDB, who is pioneering a drive whereby agencies unanimously agree to charge rejection fees for unsuccessful proposals submitted to potential new clients.

As the owner and MD of an agency himself, De Bruyn knows that the advertising community spends a fortune, both in time and money, preparing proposals for new business. Yet they gain nothing if their pitch is unsuccessful, and more often that not their hard work and ideas are 'lifted' by the company who often decide to embark upon their own campaign.

"It is unfortunate for any advertising agency to be subjected to this risk factor, especially seeing as they are often one of a handful of agencies approached directly by a potential client wanting to launch new brands or ideas. De Bruyn adds that many companies also prematurely invite tenders, and often the decision is later taken to in fact not launch the new brand or product.

"By saying that an agency should charge for their pitching time, I am not saying that they must abandon the passion that compelled them to join the world of advertising in the first place. They do, however, need to make decisions that are both profitable and in the company's best interest. By charging a rejection fee, the potential client will think twice before wasting anyone's time or money, or acting in any unethical way," said de Bruyn.

De Bruyn concluded by saying that "we should not undersell our staff and ability to make "changes" for clients". He plans to pioneer the change by encouraging forums within industry associations and motivating advertising educational institutions to teach their pupils about the value of their time within the advertising arena.



Editorial contact

Marcus Brewster Publicity
Kelly Burke
Tel: (021) 424-0470

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