Advertising account pitch fee wars
Ad industry says Telkom has asked too many agencies to bid for its prestigious account — a costly business which it refuses to pay fees for and wants too quickly — given a less than 10% chance of success
Advertising’s representative body the Association for Communication & Advertising (ACA) has stepped in to help adjudicate Telkom’s R300m account pitch process after complaints from the industry about the number of agencies invited and the short turnaround time on presentations. Telkom has indicated it’s not prepared to pay pitch fees, which in recent years has become the norm with a process of this size. The account is seen as one of the most prestigious in the industry and includes a full strategy and creative component for the Telkom consumer brand as well as technology company Business Connexion and fibre company Openserve. As many as a dozen agencies are involved in the process, which includes large groups as well as smaller shops pitching for different components of the business. Concerns were initially raised about what the ACA claims was an "unreasonable turnaround" of just a few days. After discussions between Telkom and the ACA, that has now been extended to the 15 working ...
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