VIEWPOINT: You show me yours, and then I'll show you mine

<p>Over the past few years, there has been a growing movement on the </p><p>client side for agencies to be more accountable for the campaigns they </p><p>create. </p><p><BR><BR> </p><p>Evidence of this new direction is underlined by the slow but gradual </p><p>change in the way payment is made for advertising services rendered. </p><p><BR><BR> </p><p>Led by the big multinational companies like P&G, clients are </p><p>increasingly calling for the commission structure to be replaced with a </p><p>performance-based fee system. </p><p><BR><BR> </p><p>It's the client's way of motivating its advertising partners to do the </p><p>best they can - for if the campaign fails, then the agency suffers </p><p>too. </p><p><BR><BR> </p><p>Fair enough, it seems. </p><p><BR><BR> </p><p>However, the tables have been turned and agencies are now calling for </p><p>accountability of their own from clients. </p><p><BR><BR> </p><p>In the latest MEDIA-CNBC Asian Advertising Industry Poll (see page 6), </p><p>54 per cent of agencies across the region favoured the introduction of </p><p>pitch fees, with 72 per cent saying the client should pay up to </p><p>US$5,000 per pitch. </p><p><BR><BR> </p><p>This is more than the HK$20,000 (about US$2,600) per pitch </p><p>recommended earlier this year by the Hong Kong 4As. </p><p><BR><BR> </p><p>The 4As recommendation, however, fell on sceptical ears - most clients </p><p>stated they wouldn't pay and agencies didn't believe it could be </p><p>enforced. </p><p><BR><BR> </p><p>This reflects one simple finding of the poll; that almost 50 per cent of </p><p>agencies have never received a pitch fee. </p><p><BR><BR> </p><p>But it doesn't take much imagination or calculation to realise that </p><p>chasing for new business requires the use of expensive resources. </p><p><BR><BR> </p><p>According to the poll, 67 per cent of respondents said they pitched </p><p>between six and 20 times per year. </p><p><BR><BR> </p><p>The amount of money spent, therefore, adds up over time. </p><p><BR><BR> </p><p>Advocates for the pitch fee argue that it would stop clients from </p><p>calling for unnecessary pitches and inviting unnecessarily large numbers </p><p>of agencies to participate. </p><p><BR><BR> </p><p>It would also stop companies from calling for a pitch with the intent of </p><p>simply stealing ideas. </p><p><BR><BR> </p><p>These are valid points. </p><p><BR><BR> </p><p>Afterall, everyone wants to be treated fairly. </p><p><BR><BR> </p><p>Even the clients with their push to replace commissions with fees are </p><p>looking for accountability. </p><p><BR><BR> </p><p>If the clients can demand accountability, so can agencies. </p><p><BR><BR> </p><p>Theoretically, this is true. </p><p><BR><BR> </p><p>But there are two, sad, irreconcilable realities. </p><p><BR><BR> </p><p>These are that as long as ad agencies are clamouring for accountability, </p><p>pitch fees can never be enforced under the current environment. </p><p><BR><BR> </p>