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