Why the pitch process needs to change, according to agencies

Agency leaders and staffers have long grumbled about the growing length and cost of the pitch process, and a new study from MediaSense finds it’s time for a change for the sake of agency employees’ mental health and agency profitability. Globally, 86% of agency respondents find pitching excessively time and cost exhaustive and 64% of agency respondents find pitching damaging to agency culture, according to the media consultancy’s “Pitch Smart” study. The study surveyed media agencies, with more than 100 responses collected from C-suite and director-level respondents in global and regional roles. All major agency archetypes, including holding companies, network agencies, specialists and independents are represented in the survey. See all of Ad Age's 2023 Leading Women here While 83% of respondents agreed that pitching was an opportunity to highlight an agency’s best work, those same agencies only gave the current processes a 5.9 out of 10 in terms of capability to showcase that talent. And the work needed to win potential new business is becoming less justifiable in light of the cost. For example, 64% of agencies agreed pitching is having a damaging impact on mental health, and 46% of agencies said it was increasingly difficult to find people to work on extensive pitches. That number jumps to 53% for the holding companies that were surveyed. “The current approach is a drain on agency resources and wellbeing in a market with major talent shortages,” one agency respondent said in the report. Another called the pitch process “wasteful to human and business capital.” The pitch process needs to be simplified, selection criteria need to be recalibrated, talent needs to be prioritized and transparency and communication need to be the center of advertisers’ focus for pitching to have a place in the future of advertising, according to the report. Ultimately, this means placing more emphasis on talent over templates, said Ryan Kangisser, managing partner, strategy at MediaSense, who wrote the report. “Clearly the days of the pitch being this unique opportunity to energize staff and build culture are long gone, with agencies so much more selective about what they pitch for,” Kangisser said. “And while this may come as a surprise to brands—particularly in turbulent times—it is an important wake-up call to ensure the pitch process creates the right conditions for agencies to demonstrate what sets them apart, and justify their investment of blood, sweat and tears.” Transparency from clients about their needs is a key factor in partnership success because agencies need clearer guidelines to better tailor their pitches. Respondents only gave the current level of transparency about selection criteria from advertisers a 4 out of 10, saying clients need to be better at articulating the reason they are pitching their business and what they truly need from agency partners. “Transparency, alongside frequent communication, is a critical enabler in establishing a sense of partnership with agencies as they embark—and stay motivated—on a multi-month pitch process,” Kandisser said. “As agencies weigh up the human and economic toll, they need to feel this is a worthwhile endeavor, and one where they feel they can be successful.” A $12.5 billion process Some respondents also want to change evaluation criteria entirely, moving away from a dependence on commercial criteria and media buying and trading abilities in favor of focusing on chemistry, strategy planning, data and specialist digital capabilities. “While tempting to test everything, advertisers should focus on the capabilities and values that matter and design a process accordingly,” Kangisser said. The study recommends keeping some aspects of the pitch such as capability testing, while overhauling the emphasis on transparency and agency culture and eliminating generic information requests and theoretical planning exercises altogether. This is the latest study exploring how the pitch process should change. The Incorporated Society of British Advertisers and the Institute of Practitioners in Advertising came together a year ago to create the Pitch Positive Pledge for both advertisers and agencies to make the process more intentional, accountable and responsible. Some say the solution is to completely eradicate the pitch process. A new “Ditch The Pitch” report from Forrester found that agency reviews and pitching can cost agencies and their clients $12.5 billion a year. The report advocates for clients to reframe pitches into paid projects instead. Mother London, which has signed the Pitch Positive Pledge, has already implemented its “Pitch It Forward” plan to eliminate wasteful pitches. Focusing on chemistry meetings instead of pitches, the agency has pledged to donate its first year of profit from any client adopting the plan to a nonprofit. Mother’s first chance to make good on the pledge came last month when it was named Jägermeister’s global creative agency of record. Read more: Mother London’s approach to pitches Sign up for Ad Age newsletters From influencer marketing to agencies, get the latest news and analysis delivered to your inbox Click here

Why the pitch process needs to change, according to agencies

Featured Stories