One Year of Change: Germany’s Pitch Standard 2.0 and Its Industry Impact

The German advertising production industry introduced Pitch Standard 2.0 earlier this year, a reform aimed at addressing escalating pitch costs, unpaid efforts, and imbalanced practices. Almost one year later, participants are reflecting on its implementation. Has this bold move ushered in a new era of fairness, transparency, and creativity? Or are there still hurdles to overcome?

A Landmark Reform

The Advertising Production Alliance in alliance with the DRCT directors' association introduced the Pitch Standard 2.0 as a structured framework to transform the pitching process. The key innovation was the Pitch-Cost-Share (PCS) model, requiring clients and agencies to contribute to cover the cost of pitch expenses and limiting the process to just three participants per pitch. This worked to eliminate ‘ghost pitches’ (where projects were never intended to move forward), and it has helped to ensure copyright protection for directors and production companies.

"Last year marked a significant paradigm shift in the German production industry," says Nadine Justus, managing director at the Advertising Production Alliance. "This reform aims to promote fair pitching practices, ensuring an appropriate scale for pitches and proportional compensation for materials created during the process, which are protected by copyright laws.”

“Since its implementation at the start of the year, the average number of participants in pitches has dropped from six to three in just a few months, reducing industry-wide economic losses by €10 million within a year." She also shares that 80% of all pitches in Germany now include paid compensation.

Production Companies: A Positive Shift

For production companies, the reform brought much-needed relief. Volker Steinmetz, EP and partner at TPF, shares: "The PCS has brought the exploding costs for pitches back to an economically-viable level. Clients and agencies have a much greater recognition for our work… The three-participant pitch is the norm again, and the proportion of single or double pitches has increased significantly. As a result, we are now only involved in pitches that are really relevant to us and where our directors have a real fighting chance of winning the project."

The PCS has made everyone involved more aware and focused on this pitch process. And Gabriel Waldvogel, partner and EP at LE BERG, agrees: "The reform has brought more clarity and value to pitching. It’s also made things fairer, especially with defined rules for directors’ compensation, which is a massive win."

Yet, some challenges persist. Gabriel continues: "Some things have not been fully accepted yet, like the transparency rule which asks agencies to disclose which companies are in the pitch – but honestly, I’m okay with that. When clients pay for the pitch, it feels like our work is being valued.”

Justin Stiebel, managing director of Stink Berlin agrees: "The PCS has raised the stakes creatively, with agencies and clients now receiving elevated, thoughtfully crafted pitches. It’s a system that has streamlined the process, focusing efforts and encouraging sharper ideas. But in this quest for quality, an unintended casualty has emerged: young talent."

He adds that it’s smaller companies and emerging directors that are struggling most under this new initiative as they’re finding it harder to break through. “The three-way pitch model has inadvertently placed the spotlight on established names, with wildcards becoming a rarity,” he continues. “If the PCS is to succeed in the long term, this imbalance must be addressed. The industry needs to champion young talent, not just for their potential but for the diversity and innovation they bring.”

Justin shares that the initiative has made chemistry calls feel like hard pitches and made it more difficult for smaller companies and emerging talent to compete in an already saturated market. His suggestion is “to reconsider what matters most: not the polish of a chemistry call but the weight of a bold idea, a creative treatment, and a well-considered cost proposal.” Justin calls for the industry to rebalance the talent gap and give young people a platform where they can shine, so that pitches are judged on creative and strategic merit “rather than presentation theatrics to build a healthier, more inclusive industry. By assigning meaningful weight to ideas and treatments—and equipping new voices with the resources to compete—we not only future-proof the industry but unlock its full creative potential.

Daniel Kottirsch, EP at The Sweetspot GmbH, thinks that the introduction of the PCS is a step in the right direction, as it has already improved the industry’s focus and organisation around pitches. "While the initial director search may involve several productions, the actual pitch – including the director’s interpretation and costs – typically narrows to three parties. This shift improves the overall quality of pitches."

But Daniel also doesn’t think the initiative is promoting a completely transparent process. He says: “In many pitches, participants and directors are named, but some still hide behind compliance rules.” 

The PCS may not cover full pitch expenses, but “its goal was never to offset costs entirely,” says Daniel. “The reform hasn’t made production costs significantly more manageable but has encouraged agencies and clients to reconsider whether triple bids are necessary for smaller projects” – which he says actually benefits smaller production companies and emerging talents “as projects can sometimes proceed after a brief director search and chemistry call.”

Agencies: A Broader Perspective

From the agency side, Michael MacMillan, European head of production at Anomaly, acknowledged the PCS model's impact on client relationships and resource allocation. He says: "The pitch reform process has made a long-overdue and highly beneficial impact. We’ve seen a positive response by involving our clients in sharing the associated costs to pitch."

"For emerging talent, the reform has opened up more opportunities, fostering diversity and allowing fresh voices to be heard,” he adds. “While production budget challenges persist, the reform has made significant strides in creating a more equitable and dynamic industry."

Still, others remain cautious with Tanja Thomas, managing partner PR and content at DDB opted not to comment extensively: "We believe in the importance of the ongoing discussions and reforms and prefer to observe further outcomes before making a public statement." And Maria Astraukh, senior communications manager at Serviceplan, saying: "It’s still too early for concrete results." 

Room for Growth

Despite widespread praise, the Pitch Standard 2.0 is still evolving. Many agree that time will tell whether the model can fully address underlying structural issues, such as resource allocation for smaller companies and emerging directors.

Meanwhile, the reform has already created ripple effects across the industry, fostering a more sustainable and transparent pitching process. As Gabriel puts it, "I’m really amazed by how the industry came together to make change. It feels like a collective leap forward."

Justin agrees: “The PCS has set the groundwork for a better system, but its true success will come from how we adapt and evolve it. Fairness, inclusivity, and innovation are the benchmarks by which this model must be measured. Let’s ensure that young talent isn’t just a footnote in the PCS story but its defining chapter. The PCS story is just beginning. Where it goes next is up to all of us.”

As the Pitch Standard 2.0 continues to embed itself into the fabric of Germany's advertising industry, one thing is clear: it represents a bold step towards a fairer, more balanced creative process. By championing mutual respect and collaboration, it offers a promising blueprint for others to follow.