MarCom Collective urges clients to temporarily suspend calling for pitches, competitive bids
View(s):The MarCom Collective, on behalf of the marketing communication industry, has appealed to clients to refrain from calling for pitches and competitive quotations with concepts and to continue to work with their existing partners until the current situation eases for all. The proposed timeframe is 18 months, commencing from July 1, the Collective said in a media release this week.
In the event a pitch is unavoidable, the Collective has proposed a series of steps for companies to consider: 1. Decide on an agency based on credentials submissions, 2. The proposed minimum limit that defines a project as large enough to be called for a pitch should yield a net ad spend that exceeds Rs.10 million per annum in respect of creative production for ad agencies, a spend of Rs. 5 million per event in respect of event companies, a spend of Rs. 25 million per annum in respect of digital companies, a spend of Rs. 100 million in respect of media independent companies. In addition, it proposes that clients evaluate credentials of all suitable agencies but limit the final selection to three agencies/companies only for pitch submissions. Lastly, it proposes that clients consider paying a minimum fee of Rs.150,000 for the pitch work presented by the two unsuccessful bidders. In the case of event companies and outdoor companies it requests clients to ask for cost proposals only.
Commenting on the appeal, Roshan Wijeyaratne – President, MarCom Collective and President, Event Management Association of Sri Lanka said, “The marketing communications industry has been quite challenged due to the prevailing global health and financial crisis. We believe that it is important for us to join hands and use our time and talent productively and not wastefully. The marketing communications industry thrives on relationships, as such we are confident that by working together in partnership over the next 18 months, it will enable companies to recoup some of the losses that have been incurred during the past 15 months.”
“As a member of the IAA, which represents clients, media, and advertising agencies, I believe the request being made is timely,” said Tharaka Ranwala – First Vice President, MarCom Collective and President, International Advertising Association (IAA) – Sri Lanka Chapter.
Sugiban Sathiayamoorthy – Second Vice President, MarCom Collective and President, Association of Accredited Advertising Agencies, Sri Lanka (4As) noted, “A huge investment in time and money are incurred by agencies for pitches and the expected business either does not yield the promised revenue, at times not awarded at all or the business is awarded on a predetermined decision.”