not faced any such issues till now.”
Industry analysts point out that some corporates’ strategy to call for fresh pitches is not welcomed by the industry. "Recently, four corporates have called for fresh pitches to select new ad agencies. Many new pitches are now created or stage-managed for the purpose of fee renegotiation only,” said an ad agency chief based in Mumbai.
While some ad agencies are reeling under payment issues, there are others, such as McCann Erickson India, Madison World and Draftfcb +Ulka , who are not facing any issues till now.
Nitin Karkare, chief operating officer -Mumbai, Draftfcb + Ulka said many ad agencies are facing a crunch because of clients delaying INS and production payments. “ Our agency has prudent financial management processes in place. This, coupled with our client relationships, has ensured our safety,” he added.
Echoing similar views, Prasoon Joshi, chairman & CEO - India & president – South Asia, McCann Worldgroup, said,"We have longstanding relationships with our clients. We have seen the ups and downs many times and we know how to handle these issues."
Sam Balsara, chairman of Madison World, said his agency does not have any payment issues with clients. '' There seems to be an increase in pitches but I do not think it is only to reduce agency fees,” he said.