• Subscribe to our newsletter
The Media Online
  • Home
  • MOST Awards
  • News
    • Awards
    • Media Mecca
  • Print
    • Newspapers
    • Magazines
    • Publishing
  • Broadcasting
    • TV
    • Radio
    • Cinema
    • Video
  • Digital
    • Mobile
    • Online
  • Agencies
    • Advertising
    • Media agency
    • Public Relations
  • OOH
    • Events
  • Research & Education
    • Research
    • Media Education
      • Media Mentor
  • Press Office
    • Press Office
    • TMO.Live Blog
    • Events
    • Jobs
No Result
View All Result
  • Home
  • MOST Awards
  • News
    • Awards
    • Media Mecca
  • Print
    • Newspapers
    • Magazines
    • Publishing
  • Broadcasting
    • TV
    • Radio
    • Cinema
    • Video
  • Digital
    • Mobile
    • Online
  • Agencies
    • Advertising
    • Media agency
    • Public Relations
  • OOH
    • Events
  • Research & Education
    • Research
    • Media Education
      • Media Mentor
  • Press Office
    • Press Office
    • TMO.Live Blog
    • Events
    • Jobs
No Result
View All Result
The Media Online
No Result
View All Result
Home Advertising

The scary five letter word

It is 'PITCH' and the AMF thinks agencies should get some kind of remuneration...

by AMF Board
September 26, 2024
in Advertising
0 0
0
The scary five letter word

African man in a black suit. International partners. Young guy with senior man. Writing board.

Share on FacebookShare on Twitter

There is no word in the English language that causes greater spikes in excitement, nerves, exhilaration, elation, anticipation, fear and anxiety in the minds of advertising and media professionals than the word:

 PITCH

If you are the incumbent agency your mind starts running to the worst-case scenario. Losing a client, retrenching staff, dealing with the perceptual as well as the financial fall out and so much more.

If you are not the incumbent and this is a genuine opportunity your mind runs to winning new business, awards, money, staff, fame, fortune and possibly a Nobel Prize for genius-ness.

Pitching is a mental and emotional strain on agencies second to none. Very few will ever understand what agency leadership and staff go through during a major pitch. The emotional strain truly is immense.

But it’s not just the emotional drain. It is also the financial drain.

The five by five conundrum

Most agencies don’t have staff whose job it is to write pitches. Depending on the pitch ask – the amount of work can be immense. Recent pitches we were involved in asked for an overview of the media landscape, three different strategies, detailed plans for each strategy, an approach to negotiations, a team structure and a full fee proposal. And all of this from five different agencies, and within a three-week deadline.

I reckon – per agency – it probably takes at least five full time, dedicated people for three full weeks to get that pitch over the line. That might even be a conservative estimate. Multiply that by five agencies, and we are talking about 25 senior agency professionals working for three weeks flat.

The cost per agency to work on a pitch, I believe, sits in the ballpark of R1.2 million (incl. overhead). If you apply that across five agencies, you will see that a major media pitch costs the agency world R6m – and only one agency will get any return on their investment.

Hands in pockets

Now I get it. The cost of having resources on a pitch is in part the cost of doing business. Agency leaders need to stick their hands in their pockets if they want to have a chance to win the new piece of business (and that Nobel Prize I spoke of earlier).

But surely marketers can find some compensation for the “losing agencies” for their hard work and effort?

Pitch fees have always been a hot topic. Certain industry bodies have tried to enforce them over the years – very unsuccessfully. Why might you ask? Well, none of us like to admit this, but us greedy agency people will sell our soul to the devil for the chance of a nice juicy big new piece of business.

We are not going to turn down a chance to pitch on a new piece of business just because they don’t want to pay pitch fees.

Recognition due

But I do think there is some recognition due to agencies for the work they have done in a pitch. I would reckon seven out of 10 clients DO NOT pay pitch fees. When a client does pay – the most agencies generally receive as a pitch fee is R50 000 per agency.

Better than a kick in the teeth, but nowhere near recovering the costs of your R1.2m and all your shared IP.

I think it is a matter of appreciation that our industry needs. Most agencies take the R50k, and pay a small bonus to the pitch team, and buy the staff some pizzas to say thanks for a valiant effort.

I would really like to challenge marketers to think out the box when it comes to thanking and compensating unsuccessful agencies for the time, money and effort that went into putting together a pitch.

How about hosting a beautiful lunch for all the losing agencies and their pitch teams? This gesture would build massive relational capital with these agencies and make them know that you appreciate them. Then – give them something. R50 000 per agency is a good start.

We don’t expect to cover the full cost of the business, but this is the fuel that will make us fight harder next time.

Some appreciation goes a long way.

Contributed by The AMF Board

The Advertising Media Forum (AMF) is a collective of media agencies and individuals including media strategists, planners, buyers and consultants through whom 95% of all media expenditure in South Africa is bought. The AMF advises and represents relevant organisations and aims to create open channels of communication and encourage and support transparent policies, strategies and transactions within the industry. For more information on the AMF, visit amf.org.za.


 

Tags: advertisingAdvertising Media ForumAMFcost of pitchesmarketingmediapitches

AMF Board

The Advertising Media Forum (AMF) is a collective of media agencies and individuals including media strategists, planners, buyers and consultants through whom 95% of all media expenditure in South Africa is bought. The AMF advises and represents relevant organisations and aims to create open channels of communication and encourage and support transparent policies, strategies and transactions within the industry. For more information on the AMF, visit amf.org,za. For comment on the industry issue covered in this editorial, please contact: Koo Govender AMF Chairperson Cell: 083 272 0063 Email:Koo.Govender@dentsuaegis.com

Follow Us

  • twitter
  • threads
  • Trending
  • Comments
  • Latest
Kelders van Geheime: The characters are here

Kelders van Geheime: The characters are here

March 22, 2024
Dissecting the LSM 7-10 market

Dissecting the LSM 7-10 market

May 17, 2023
Keri Miller sets the record straight after being axed from ECR

Keri Miller sets the record straight after being axed from ECR

April 23, 2023
Getting to know the ES SEMs 8-10 (Part 1)

Getting to know the ES SEMs 8-10 (Part 1)

February 22, 2018
Sowetan proves that sex still sells

Sowetan proves that sex still sells

105
It’s black. It’s beautiful. It’s ours.

Exclusive: Haffajee draws a line in the sand over racism

98
The Property Magazine and Media Nova go supernova

The Property Magazine and Media Nova go supernova

44
Warrant of arrest authorised for Media Nova’s Vaughan

Warrant of arrest authorised for Media Nova’s Vaughan

41
Navigating the AI tide without losing our humanity

Navigating the AI tide without losing our humanity

May 29, 2025
The marketing mission remains clear

The marketing mission remains clear

May 29, 2025
 Auditing masterclass lifts the lid on hidden costs

 Auditing masterclass lifts the lid on hidden costs

May 29, 2025
Media Moves: TASTE turns 20, Anele, Lira and Janine van Wyk are FEARLESS in new campaign; Alex Okosi new MD for Google Africa, Accenture Song wins Telkom business

Media Moves: Media24 unveils unified advertising and content team, Masego Matlotleng awarded Creative Futures scholarship, PHD wins Cell C business

May 29, 2025

Recent News

Navigating the AI tide without losing our humanity

Navigating the AI tide without losing our humanity

May 29, 2025
The marketing mission remains clear

The marketing mission remains clear

May 29, 2025
 Auditing masterclass lifts the lid on hidden costs

 Auditing masterclass lifts the lid on hidden costs

May 29, 2025
Media Moves: TASTE turns 20, Anele, Lira and Janine van Wyk are FEARLESS in new campaign; Alex Okosi new MD for Google Africa, Accenture Song wins Telkom business

Media Moves: Media24 unveils unified advertising and content team, Masego Matlotleng awarded Creative Futures scholarship, PHD wins Cell C business

May 29, 2025

ABOUT US

The Media Online is the definitive online point of reference for South Africa’s media industry offering relevant, focused and topical news on the media sector. We deliver up-to-date industry insights, guest columns, case studies, content from local and global contributors, news, views and interviews on a daily basis as well as providing an online home for The Media magazine’s content, which is posted on a monthly basis.

Follow Us

  • twitter
  • threads

ARENA HOLDING

Editor: Glenda Nevill
glenda.nevill@cybersmart.co.za
Sales and Advertising:
Tarin-Lee Watts
wattst@arena.africa
Download our rate card

OUR NETWORK

TimesLIVE
Sunday Times
SowetanLIVE
BusinessLIVE
Business Day
Financial Mail
HeraldLIVE
DispatchLIVE
Wanted Online
SA Home Owner
Business Media MAGS
Arena Events

NEWSLETTER SUBSCRIPTION

 
Subscribe
  • About
  • Advertise
  • Privacy & Policy
  • Contact

Copyright © 2015 - 2023 The Media Online. All rights reserved. Part of Arena Holdings (Pty) Ltd

No Result
View All Result
  • Home
  • MOST Awards
  • News
    • Awards
    • Media Mecca
  • Print
    • Newspapers
    • Magazines
    • Publishing
  • Broadcasting
    • TV
    • Radio
    • Cinema
    • Video
  • Digital
    • Mobile
    • Online
  • Agencies
    • Advertising
    • Media agency
    • Public Relations
  • OOH
    • Events
  • Research & Education
    • Research
    • Media Education
      • Media Mentor
  • Press Office
    • Press Office
    • TMO.Live Blog
    • Events
    • Jobs

Copyright © 2015 - 2023 The Media Online. All rights reserved. Part of Arena Holdings (Pty) Ltd

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?