In brief Offers are generally prepared without separate remuneration. However, if the contracting authority requires special work, such as a campaign concept, Section 130 BVergG 2018 requires appropriate remuneration. It is due to all suitable bidders who have submitted an offer in line with the tender.
What counts as special work
A short description of the working method is something different from a comprehensive campaign with strategy, central idea, copy, design and production concept. What matters are scope, depth, usability and the requirements of the tender. The legal classification must be examined in each individual case.
How high a pitch fee should be
There is no statutory rate. The Quality Pitch Charter of the International Advertising Association Austria gives two to three per cent of the expected annual agency fee as a guide, depending on budget and effort. The decisive factors remain the required effort, the number of agencies invited, the size of the budget, complexity and market conditions.
Source: IAA Austria, Quality Pitch Charter (opens in a new window)
Why a pitch fee pays off for contracting authorities
A pitch fee is not only a question of fairness but of the quality of the procedure. Anyone who asks for extensive, usable work should not be surprised by agencies that think economically. An appropriate fee increases the chance that strong agencies take part and field their best people.
That is why we only take on procedures in which extensive concepts are compensated with a fair pitch fee.
What happens to ideas that are not commissioned
Ideas that do not win the contract are not a free collection of ideas. Anyone who wants to use them needs clear rules in advance on type of use, territory, duration, adaptation rights and remuneration. Buying the rights afterwards can be fair, but it is no repair mechanism for missing rules. For this, we have developed our own method: already in the procurement procedure, it is determined what fee applies to individual ideas such as PR stunts, social media or guerrilla marketing actions if the contracting authority wants to use an idea whose agency did not win the contract.
Frequently asked questions
Does this also apply to private companies?
The BVergG only applies to public contracting authorities. Since it defines the platinum standard for us, we follow the same principles in private pitches.
Does the winning agency also receive a pitch fee?
As a rule, the winning agency does not receive a pitch fee.