What Do You Mean By Kill Fee In The World Of Advertising?

A Kill Fee is a concept that originated in the advertising space. When ever a client wants to hire an ad agency it will put out word in the market. This could be a first time appointment or to replace the incumbent. The client will provide some details about the product and possibly the target market. It is up to the agencies to pitch for the contract.

The agencies will work on the concept for a designated period of time before making presentations to the client. Since agencies generally do not work with each other on one campaign, the client will choose one agency. But the other agencies would have incurred certain expenses while pitching for the contract. It is here where the concept of the Kill Fee will come in. The client will make a payment to the agencies that have lost out as a goodwill gesture. This is not a practice that is adhered to by all clients.

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