Pitch fee policy about respect not punishment

The Hong Kong 4As has vowed to discipline errant agencies who flout its new pitch fee policy, but chairman Jeffrey Yu insisted the scheme was more about respect than punishment. The 4As, however, has no plans to act as a policeman; what it plans to do is to ask errant agencies to explain why they flouted the policy at its meetings, said Mr Yu (Bates Advertising). "This policy is not about punishing agencies, but about gaining respect for their services and amount of work agencies put into presentations, and asking clients to respect this." Mr Yu insisted the fee was not a punitive measure aimed at clients, but to encourage advertisers to only call agencies they respect to a pitch. Effective immediately, the 4As introduced a pitch fee policy with the endorsement of the Hong Kong Advertisers Association (2As), requiring clients to pay HK$20,000 to each of its member agencies involved in a new business pitch. The ruling will not apply to the incumbent agencies or for a credentials-only presentation. Member agencies are required to inform the 4A's secretariat whenever they are invited to a new business pitch to enable the secretariat to bill the client on members' behalf. The policy requires clients to settle payment of the pitch fee before the presentation date. Despite its endorsement, the 2As has acknowledged difficulties in implementing the policy. However, 2As vice-chairman Nancy Pang (Kowloon Motor Bus) said the policy was needed to halt the erosion in advertising standards. Compared with 10 years ago, she said pitches were becoming more frequent these days. Clients were now putting even tactical promotional projects up for pitch - a move which has driven agency fees and subsequently quality down especially since the recession erupted. "A lot of clients are trying to grab the 4A's ideas, but they don't get a 4A's member to do the job. They pass the idea to a production house to execute," Ms Pang said. "It's up to the 4As to discipline its members. We can only disseminate the information and encourage our members to adhere to the policy." While admitting there was some dissent in the ranks, Ms Pang said she was hopeful of compliance, since "most (2As) members are the big companies and they are the ones which tend to stick to industry standards".

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