AutoZone Latest to Demand Ownership of Pitches

AutoZone wants to own the creative, all of it, regardless of who wins the account. That demand, becoming more common, has prompted at least one finalist—Havas’ Arnold in Boston—to bail two weeks ago. Interpublic Group’s McCann Erickson in Troy, Mich., remains in, though it told AutoZone that it won’t pitch on those terms, said sources. For their troubles, AutoZone is said to have told contenders that it wants to own what they present for about $30,000 each and doesn’t want them to pitch any competitors for two years.The other finalists in the $70 million creative review could not be identified at press time. Despite misgivings about the process, Arnold and McCann declined to comment, illustrating the dilemma of shops in the situation: The agencies may be upset, but they’re unwilling to speak badly of clients, particularly if much-needed revenue is at risk. AutoZone and its review consultant, The Linderman Media Group, did not return messages.AutoZone isn’t the only client to pull such a move. In the past five months, at least three marketers have sought to own all pitch work in exchange for relatively meager or somewhat reasonable sums. Major League Baseball and Celebrity Cruises, for example, offered $10,000 and $50,000, respectively, for idea ownership. Meanwhile, Prudential Financial paid each of its three finalists $350,000 for their creative work, after its consultant, Ark Advisors, canvassed agencies to arrive at a “fair” amount, said sources.Laurie Coots, global CMO at Omnicom Group’s TBWA and chairman of the 4A’s new business committee for large agencies, said the trend is happening for a simple reason: Clients know they can get away with it. “A lot of people start out with the predisposition that agencies are easy, that they’ll do anything to get in a pitch and they’ll give away ideas and that sort of stuff,” she said. “So, a lot of clients—who are smart, by the way—will ask for that.”Coots said she’s seen intellectual property ownership requests in reviews pick up in the past two years, as client procurement executives got more involved in the process. Historically, clients have sought creative ownership for fear that a losing agency will sue if the work they subsequently produce resembles something the loser presented, which is not improbable, given that all finalists get the same brief. Agencies like TBWA, Deutsch, BBDO, Wieden + Kennedy and Euro RSCG typically push back on such requests, with most clients relenting. Such demands have created ill will on the other side of the divide. Havas global CMO Matt Ryan further described such clients as “people who are trying to get a new idea cheap,” adding, “They don’t particularly value advertising.”

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AutoZone Latest to Demand Ownership of Pitches

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