Noorings: Reckitt Benckiser’s media pitch should be a wakeup call for the industry
For many years now, agencies have been trying with no success to bring some kind of a pitch-fee process to avoid free display of ideas to just any advertiser. But corporate major Reckitt Benckiser astonished many when it decided to reopen its media review, and asked agencies to pay a fee to participate in the pitch. The pitch is said to be CPRP-linked and has another clause that agencies call ‘preposterous’. While AAAI is fighting this particular battle in its own way, has the industry thought through the bigger dilemma that stares it in the face?
It would be fair to say that Reckitt Benckiser was discussed more in the last weeks in media circles than it was in the last two years. Reason, the media pitch. Some call it ‘orchestrated by an ill-informed mind’, others prefer staying with ‘preposterous’, ‘unethical’, ‘anti-industry’, ‘humiliating’ and such similar sounding terms. Now, it is not the pitch itself that has exacted these responses. Though one would wonder why a professional, renowned corporate like Reckitt Benckiser would conclude a global pitch, align its media duties with a particular agency, shape it in India, and then within months, reopen the review.
There are no official comments coming, but there are many stories already floating on the reasons for the pitch. The most popular is that MPG had signed a CPRP-led deal with Reckitt, and the deliverables have not been met. Hence, a fresh media pitch. Not many have a problem with the story so far. The problem begins when the pitch clauses get known.
Alleged clause number one: a certain fee that the agency would pay to Reckitt Benckiser to participate in the pitch – some say Rs 3 lakh, some say Rs 4 lakh was asked.
Alleged clause number two: commit cost per rating points, in short, commit rates...
Alleged clause number three: for the first 12 months, the agency pays Reckitt Benckiser commission, because, and again allegedly, working with Reckitt would bring advantages like significant volume...
I must reiterate here that there are no official confirmations on any of the above mentioned. This is industry intelligence. But the last couple of weeks have seen heated discussions at various Advertising Agencies Association of India (AAAI) meetings pointing out the repercussions that a pitch like this can have on the overall industry.
The AAAI is said to have advised all its members to refrain from the Reckitt Benckiser media pitch until the advertiser changes the clauses. And many agencies have said that they have pulled out of the pitch.
Right now, there are too many fingers pointing at Reckitt Benckiser – how can an advertiser impose such clauses for a media pitch? Have we come to a stage where agencies would have to pay clients to show them their ideas to get that piece of business? What are clients like Reckitt encouraging agencies to do when they talk of how low can low rates on channels be, and then award the business only to those who promise the lowest rates? Worst still, and if this is understood right, what is this reverse commission that is suggested here?
The Reckitt Benckiser media pitch has attracted the worst comments that were possible on any pitch process. Some are not even discussing the idea openly lest it ends up giving ideas to other advertisers!
But the more I think, it is not this pitch or its clauses that are the worry. The advertiser has gone ahead and suggested unusual media pitch terms. She/he is within her/his rights, if not right, in doing so. And let’s face it – there were agencies that considered pitching until the AAAI intervened, and there were broadcasters who thought how this deal could make sense to them because even if they shelled out crores of rupees from their own pockets to get the Reckitt business, it would attract other advertisers.
The industry is so advertiser-dependant right now that even when an some idea looks wrong right in the face, the industry is willing to give it a shot if it can get it one new client.
The advertiser is thinking in all directions. Media procurement departments, by the very definition, are treating media like commodity and media service brands like salesmen; creativity, intelligence and strategy have gone out of the equation. The advertiser wants more from less, and honestly, there is nothing wrong in that.
But unless the advertising industry begins working together in a better way, industry growth will only be tougher. The advertising industry was not able to unite on something like a pitch-fee. What was the fear - someone can break the ranks.
So, here is the real worry - when the industry is this inward-looking, is it prepared to take on the bigger challenges that the advertiser is throwing at it every single day?
Gone are the days when agencies were competing with each other, or rather, such days better be gone. The competition today is with external forces, and only collaboration can help survive. Media service brand professionals will have to pick up the phone and speak to each other, instead of giving in to rate cuts and making obscure promises to win an advertiser. True, it is difficult to gauge what one can lose or win from this. Hopefully, over a period of time, there would be balance. But at least in the longer run, the media service industry wouldn’t be cutting its very own roots to keep a client happy. In the longer run, media would not be procured, but partnered.
The Reckitt Benckiser pitch signifies only one thing – the advertiser can do anything; the industry should be prepared.
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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur
The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more
With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.
The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.
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ShareSwapan Seth's new book 'COOL' is out
The book is a reflection of the author's 'eclectic taste across categories'
Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."
The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."
COOL has been published by Simon & Schuster India and is available on Amazon.
Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.
He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.
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Disney Star signs 9 sponsors for Asia Cup PAK
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board
e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.
According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.
As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.
A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.
Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.
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Sorted 360 wins creative & social media mandate of Reliance Mall
The agency will manage offline and online campaigns for Reliance Mall
Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.
“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.
“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.
"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."
"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."
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KlugKlug onboards Hemang Mehta as Country Manager for Indias
Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments
KlugKlug has appointed Hemang Mehta as its Country Manager for India.
Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy
Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.
Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."
Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."
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