Indian Ad Organizations Compromise on Pitch Fees

20 April 2006

The thorny issue of pitch fees payable by India's advertisers to agencies invited to present proposals appears to have been resolved.

The Advertising Agencies Association of India and the Indian Society of Advertisers have compromised on the fees, by agreeing to make them discretionary.

The amicable settlement overrides the motion passed by the AAAI in January which called for compulsory pitch fees to be paid to agencies when they presented creative ideas to clients.

Comments the organization's president Srinivasan Swamy: "The pitch fee . . . will depend on the parties concerned. Both parties have been working on the same page and sorting out matters through consultation."

Adds Arvind Sharma, chairman/ceo of Leo Burnett India: "The number of clients calling for pitches just to get fresh ideas will certainly reduce."

Data sourced from The Times of India; additional content by WARC staff