The Advertising Agencies Association of India (AAAI) is facing one of its biggest challenges in recent times. The bone of contention is the controversial Reckitt Benckiser media pitch. The AAAI has stated that given the pitch clauses, no agency should participate in the pitch. However, it is understood that there are at least four agencies that have had conversations with the client.
The agencies that are rumoured to be in the pitch include Allied Media and Prachar, though officials from both companies have refrained from offering any kind of comments on the development.
The third agency that has been questioned on the pitch is ZenithOptimedia. One of the reasons for that is that ZO is a Reckitt agency globally, and the client has had dialogues with the agency at a global level.
There is much speculation around the fourth agency involved and exchange4media couldn’t establish independently the veracity of the industry grapevine on the name of the fourth agency.
While Reckitt Benckiser officials remain tight-lipped on the details of the pitch, according to industry sources, the pitch clauses demand the agency to pay a sum of Rs 3 lakh to participate in the pitch. The second clause stresses on the importance to sign committed CPRP (cost per rating point) deal. And the final clause is that the commission that agencies make from media partners on the basis of volume deals, should be given to Reckitt Benckiser till December 2011.
Various agencies have had varied approaches to the Reckitt pitch call. However, as soon as the matter was discussed at an AAAI meeting, the Association pointed out aspects that it believed were detrimental to the growth of the media industry. The AAAI immediately issued a diktat asking agencies to pull out from the pitch. And it is understood that many companies like GroupM, Mudra, TME and others have stayed away from the pitch.
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