Bank Mandiri hits pitch fee obstacle

JAKARTA - The US$15 million creative pitch for Bank Mandiri, one of Indonesia's largest banks, has run into pitch fees problems, with a number of agencies remaining non-committal about continuing the review until the fee is paid.

The bank had invited ten agencies for an initial briefing, and had requested test ads with a view to shortlist ingfive agencies.

While the number of agencies refusing to continue pitching could not be confirmed, most of the MNC agencies, believed to include WPP’s Bates and Omnicom’s DDB, are holding out for a pitch fee before proceeding beyond credentials presentations.

According to sources, the situation is not unlike Indosat’s and Djarum’s creative pitches in July and August respectively.

In July, the telco giant was reluctant to pay a Rp25 million (US$2,700) fee - which is required of large advertisers.

In August, Djarum, Indonesia's third largest cigarette-maker, became the first advertiser to refuse to pay agencies a pitch fee since the protocol on pitching was introduced by the Indonesian 4As late last year.
| advertising , DDB , omnicom , pitching , wpp