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2Bobs—with David C. Baker and Blair Enns
The Death Throes of the Pitch
Nov 8, 2023
Explore the costs and impact of pitching in the marketing industry, with a focus on the influence of procurement and search consultants. Discover the financial burden on clients and agencies, and the interesting findings about the role of the incumbent agency in winning new business. Learn about the low success rate of agency pitches and the addictive nature of participating in them. Lastly, uncover the possible connection between CMO job changes and increased frequency of pitches.
28:16
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Quick takeaways
- The high costs of pitches, averaging around $200,000 for non-incumbent agencies, and $400,000 for incumbent agencies, are driving the push for more cost-effective solutions.
- Incumbent agencies often win pitches, but there is a trend of them refusing to defend the account, with 25% declining to participate, leading to difficult decisions and strained relationships with clients.
Deep dives
Pitches are expensive for everyone
According to a report from the 4As and ANA, pitches cost the average non-incumbent agency around $200,000 per pitch, while an incumbent agency spends over double that amount at $400,000. The client cost of a pitch is estimated to be around $400,000. These high costs are a significant factor in the push to find more cost-effective solutions. Additionally, 66% of the time, the incumbent agency wins the pitch, making it difficult for non-incumbent agencies to secure new business.
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