Is pitch fees a strategic imperative for advertising professionals or an unnecessary burden for clients
By Felicia Nwosu
The conversation around structured pitch fees in Nigeria’s advertising industry continues to evolve as professionals push for fairer compensation for the strategic effort invested in competitive pitches. Is pitch fees a strategic imperative for advertising professionals or an unnecessary burden for clients as Nigerian advertising industry continues to grapples with pitch fee dilemma despite ongoing advocacy.
While agencies argue that pitch fees promote professionalism, protect intellectual property, and sustain business operations, many brands remain hesitant, citing procurement protocols, economic constraints, and concerns about value-for-money. The debate highlights the industry’s struggle to balance financial realities with the need for a fairer engagement framework.
Despite years of advocacy, policy drafting, and industry-wide agitation, the issue of pitch fees remains unresolved in Nigeria’s advertising space. Agencies continue to lament the recurring scenario of being asked to deliver fully fleshed-out creative campaigns often involving strategy, research, and execution-ready ideas without compensation or assurance of securing the business.
This long-standing pain point, frequently discussed at conferences and within industry circles, continues to frustrate agency owners and creative professionals who say their work is not only underappreciated but frequently exploited.
Regulatory efforts have attempted to shift the tide. The Advertising Industry Standard of Practice (AISOP), introduced by the Advertising Regulatory Council of Nigeria (ARCON), prescribes pitch fees for participating agencies, but it seems it has not fully achieved this critical goal.
Overtime, the Experiential Marketers Association of Nigeria, EXMAN had previously resolved that clients should pay up to N500,000 as rejection fees to compensate agencies for time and resources. The enforcement of this guideline, however, has been inconsistent. While past Association of Advertising Agencies of Nigeria, AAAN, presidents like Steve Babaeko and several others, had pushed for compliance in the time past and attempted to broker MOUs with client associations like ADVAN, their efforts have yielded little change.
One professional who pleaded anonymity, said what is compounding the issue is the lack of solidarity among agencies themselves, adding that some still engage in unpaid pitches in a bid to keep their doors open.
Meanwhile, the president of Advertisers Association of Nigeria, ADVAN, Osamede Uwubanmwen, had questioned ARCON’s authority to impose pitch fees, arguing that AISOP contradicts constitutional provisions that allow businesses to freely negotiate contracts.
Drawing a sharp analogy sometime ago on his LinkedIn handle, Idu Raphael, Managing Director of Poke Media, challenged the foundational mindset that allowed free pitches to thrive. “Imagine if doctors had to diagnose you for free just to prove they could treat your condition. Advertising agencies should not be expected to hand over intellectual property without a financial agreement in place.”
According to him, intellectual capital, creative strategy, and marketing ideas are the actual products agencies sell, and offering them for free is unsustainable.
“On average, an agency could take on 5 to 10 pitches annually. Most of them are never paid for. In Gen Z speak, ‘It’s really not giving.’”
He proposed alternative approaches: pitching with profiles that include case studies and methodologies, inviting clients for chemistry meetings to assess compatibility, and ensuring clients have marketing departments capable of valuing creative work. “If you must pitch for free,” he said, “at least confirm the client understands your value, has a budget, and is serious. In local parlance, ‘If you must pitch a fish, make sure e carry egg.’
In the out-of-home (OOH) sector, the pitch fee conversation is also gaining traction. Anthony Nwabuisi of Optimum Exposures noted that while strategic OOH presentations are becoming more common, the structure remains haphazard. He stressed the need for professional guidelines. “In Western markets, pitch fees are standard. If you don’t pay, agencies won’t show up. We need to reach that level of professionalism here.”
He criticised the practice of demanding strategic input from multiple agencies on tight timelines, without compensation or regard for the effort involved. “Clients must understand that agencies are integral to their success and should be treated as partners, not beggars.”
Patrick Gomes, CEO of Digit Xplus, emphasised the significant time and investment agencies dedicate to working on briefs, alongside the crucial aspect of copyright. Gomes argued that documented evidence of agreement to pitch should necessitate client alignment and understanding of the work involved. While agencies aren’t demanding exorbitant fees, adherence to a mandated pitch fee would introduce much-needed hygiene into the market. This would also necessitate non-disclosure agreements that ensure clients respect the copyright of the work presented and prevent its unauthorized use.
Gomes further questioned the common practice of clients inviting numerous agencies to pitch, suggesting a more efficient approach. He proposed a filtration process where clients initially request information and credentials from agencies. Based on these presentations, clients could then shortlist a smaller number of agencies, perhaps to receive the brief.
He explained that this streamlined process would be more manageable for both clients and agencies. The digital marketing expert drew an analogy to hiring a carpenter, stating that one wouldn’t judge based on tools alone but rather on the quality of past work. Similarly, agencies should be evaluated on their portfolio and track record, allowing clients to identify suitable partners before the intensive pitching stage. He stressed that an agency’s potential lies in its work, which should build client confidence.
Professionals argue that adopting structured pitch fee policies will reduce speculative work, protect intellectual property, and allow agencies to prioritize quality over quantity. It would also enable long-term investments in creative excellence, fostering a more sustainable industry.
Until there is collective discipline among agencies and stronger regulatory enforcement, the pitch fee conversation may remain just a conversation.
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