Pitching: An Expensive Habit Draining Advertising Agencies

The practice of advertising agencies participating in numerous, often unpaid, pitches is a significant drain on resources and a major source of stress within the industry. A European study reveals that agencies engage in approximately 14 new client pitches annually, collectively spending over 650,000 euros. Each pitch averages 44,000 euros, involving around eight people and nearly 50 hours of work per individual.

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Pitching is one of the biggest ailments of the industry.

Compounding the issue, research indicates that between 75% and 90% of these pitches do not include any compensation for the agencies. Furthermore, a staggering 90% of respondents have experienced unfair practices during the pitching process. In Ireland, over 50% of agency directors cited pitching as a primary cause of employee stress. While specific data for the Croatian market is unavailable, the situation is likely similar.

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The average agency participates in approximately 14 pitches for new clients annually, spending more than 650,000 euros on pitching.

The article advocates for a shift away from pitching as a standard tool for operational decisions. Instead, it emphasizes the value of long-term partnerships between clients and agencies. These collaborations foster a deeper understanding of the client's business, ensure brand consistency, build mutual trust, and ultimately lead to better business outcomes. Examples like Mars and BBDO's 50-year partnership and Nike's collaboration with Wieden+Kennedy since 1982 underscore the benefits of sustained relationships over the costly and often unproductive cycle of pitching.

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Between 75 and 90% of pitches do not include any compensation for agencies, while 90% of respondents claim to have experienced some form of unfair practice during a pitch.