Thai media agencies to charge pitch fees

According to a regulation formulated by the Media Agency Association of Thailand, any company inviting a media agency to pitch will have to shell out a flat rate of US$3,000 to every agency involved.

The rate was agreed on by 20 leading agencies, which had about an 80 per cent share of total media spending of $2 billion last year. The aim of this regulation is to prevent excessive and uncalled-for pitches in the Kingdom, which could become a financial burden for agencies.

The media agency that wins the contract will not charge the fees. Presentations will be free of charge for credential presentations. The agency will not charge Government clients and non-listed state enterprises such as telcos CAT and TOT. Major international companies with regional and global businesses or those using services from several ad agencies at the same time will be exempt from the fees.

The agencies are following a trend started by creative agencies in 2004 when the Advertising Association of Thailand announced a flat-rate fee of US$3,000 for a full above-the-line campaign pitch and $1,500 on a pitched plan presenting only a strategic idea. Those pitch fees are still in force.