Thailand in strong push to fee-based remuneration

<p>The Advertising Association of Thailand (AAT) is set to release </p><p>guidelines for fee-based pricing to its members next month, using US and </p><p>British models. </p><p><BR><BR> </p><p>The move was brought on in part by the Asian financial crisis which </p><p>ravaged Thailand's advertising industry, but the change has been </p><p>accelerated by media specialists coming into the market. </p><p><BR><BR> </p><p>AAT president Pornsiri Rojmeta said these newcomers had undercut </p><p>traditional agency commission structures and were forcing companies to </p><p>review pricing strategies. </p><p><BR><BR> </p><p>"Clients used to pay 17.65 per cent commission for every service," she </p><p>told MEDIA. </p><p><BR><BR> </p><p>"Media specialists charge seven per cent but fail to recognise how </p><p>agencies can make a living and stay in business. </p><p><BR><BR> </p><p>"We continue to receive a number of complaints from our members, so our </p><p>first priority is can we move forward and get fair compensation in line </p><p>with the Western world." </p><p><BR><BR> </p><p>Feedback from members has been mixed, with some asking for a combination </p><p>of fee-based and commission pricing. </p><p><BR><BR> </p><p>"The AAT can't force the head of an agency to follow our way," said Ms </p><p>Pornsiri. </p><p><BR><BR> </p><p>"We can educate and motivate to agree to an industry standard and offer </p><p>a range of pricing and services." </p><p><BR><BR> </p><p>The AAT will propose extra incentive fees for agencies which are able to </p><p>move a client's sales up by 110 per cent beyond target for products </p><p>featured in advertising campaigns. </p><p><BR><BR> </p><p>Agencies which refuse to embrace change and stick to traditional </p><p>commission structures will have a difficult future, Ms Pornsiri </p><p>cautioned. </p><p><BR><BR> </p><p>"Anyone who can continue with commission based pricing only is very </p><p>lucky," she said. </p><p><BR><BR> </p><p>"We have to be smart and use both percentage commissions and fee-based </p><p>pricing. </p><p><BR><BR> </p><p>"The new thinking has to be to cover costs and make a reasonable </p><p>profit." </p><p><BR><BR> </p>