Fifteen agency members of the PPPI - both multinational and local - have already signed the protocol, although Indonesia’s client community has yet to be approached.
“The idea has been brewing in Indonesia for some time,” said Irfan Ramli, the secretary general of the PPPI, and CEO of Hakuhodo Indonesia. “There have been many complaints from our members, who have pitched only for no winner to be given the business. We have also found in some cases up to 20 or even 30 agencies competing.”
“The idea has been brewing in Indonesia for some time,” said Irfan Ramli, the secretary general of the PPPI, and CEO of Hakuhodo Indonesia. “There have been many complaints from our members, who have pitched only for no winner to be given the business. We have also found in some cases up to 20 or even 30 agencies competing.”
The protocol obliges advertisers with a marketing budget of up to Rp 10 billion (US$1 million) to pay Rp 10 million to each participating agency, or Rp 25 million if their budget exceeds Rp 10 billion.
The fees will be co-ordinated and distributed by a secretariat, which will be paid part of the fee as a service charge.
The protocol also stipulates that advertiser pitch lists are capped at five agencies. “Pitching should be organised in a correct and open manner, not merely as a forum for free idea-gathering,” reads a draft of the protocol.
Indonesia will be Southeast Asia’s fourth major advertising economy to introduce pitch fees, after Malaysia, Thailand and the Philippines.