Some of it is externally driven, like the new media movement. Much of it is self inflicted. For example, in T&T the AATT prescribes that clients should pay $5,000 for creative competitive pitches. Why? To cover some of the costs involved in preparing a presentation including research, copywriting, artwork and a whole lot of analysis that agencies undertake. I know many agencies, including my own, who have participated knowing that they will not receive this partial compensation for their efforts.
Clients say they won’t pay because if an agency wins, they more than make back their investment. And that’s the chance you take and if you don’t like it just refuse to take part. The reality is that will mean almost zero new busines pitches. So you rationalise that everyone does it so you have to too. That’s how we all end up breaking red lights. Or I should say some of us. Some still do the right thing.
Actions like these (pitching for free) commoditizes agencies. What irony? The great brand builders are commodities themselves.
