Last week we asked which UK media agency would bite the bullet and pitch for Premier Foods’ account, resigned by Starcom MediaVest over its astonishing request for an ‘investment’ payment, one we estimated at £40,000.
But according to sources in the media business this was something of an underestimate – the actual figure in question is over £300,000, roughly half the money an agency would make on its £20m account. What’s more this isn’t a one-off, it’s annual.
£40,000 or so is likely to be the asking price for Premier’s creative agencies JWT and McCann, suggesting they’re on a fee of around £80,000 a year.
This is all rather perplexing on Premier’s part (as well as unethical, more than arguably). If the company thinks it”s paying too much in fees/commission why doesn’t it just reduce them?
Maybe, in the case of media, offering a commission of one and a half per cent to pitching agencies wouldn’t be all that appealing.