Written by Bobby Amm, Executive Officer,  Commercial Producers Association of SA

The Commercial Producers Association of South Africa (CPA) is advocating for urgent pitch reform in the wake of recent developments in Germany which have seen marketers and advertising agencies agree to pay production companies for the work that goes into the development of their pitches. 

South African production companies say that it costs each of the companies invited to pitch on any given job between R30,000 and R80,000.  These are hard costs, such as the many hours of work put in by directors, producers and researchers as they prepare their treatments for presentation to the agency and their client.  Unless the job is won, there is no way for production companies to recoup these funds.  Companies that may experience a bad run and not secure any work despite being asked to pitch on multiple occasions can face severe financial pressure as a result.  

Recently the German Directors’ Association DRCT working in collaboration with the Producers’ Alliance Advertising Section have led the way in their groundbreaking agreement which incorporates the “pitch cost share model” in which clients and agencies agree to pay every production company a portion of the costs incurred in the pitching process, thereby spreading the risk between the parties rather than expecting the production companies to take this on alone.  

Considering the way the industry has changed considerably in recent years, this new agreement feels much fairer, more transparent and respectful which is why, following success in Germany, other countries – including South Africa – are asking: shouldn’t we have pitch reform here too?

The CPA proposes that a new pitch fee be introduced in South Africa which is based on the size of the production budget.  This would need further discussion with agencies and clients who would need to agree in principle that this payment is valid and legitimate for the work put into the process.   In addition to recognizing the value of commercial directors and production companies as true creative partners, the new system will have many other positives. Most notably it will limit the number of companies invited to pitch, it will reduce the number of companies – not in serious contention but invited anyway – to make up the numbers or provide comparative quotes and it will focus attention on agency recommendations and save them time and resources.  

All eyes will be on future developments to see if South Africa will embrace much needed pitch reform.