Clients contributed little to pitch costs, AAR's survey shows

New research commissioned by the AAR has revealed that only 12 per cent of clients have contributed to pitch costs over the past two years and in most cases the fee was a nominal amount.

The research, The New Business Marketplace 2003, is an attempt by the AAR to get a full picture of new-business conditions in the UK. The findings are drawn from the responses to a questionnaire sent out to 60 agencies.

The findings also reveal that a typical pitch budget is between £10,000 and £15,000.

The results also reveal the extent to which procurement directors from client companies have become involved in the pitch process. The findings show that procurement departments were involved in 24 per cent of pitches over the past two years. Most respondents felt their contribution was minimal, but admitted their involvement led to clearer financial arrangements.

Other findings include that in only 11 per cent of pitches did the incumbent agency retain the account, and that four agencies, on average, pitch for each piece of new business.

The average pitch length is five-and-a-half weeks, but this obscures a wide spectrum of pitches lasting from ten days to more than 14 weeks.

Martin Jones, the AAR's owner, said: "It's designed to help agencies make decisions based on fact. We'll do it on an annual basis to monitor the ups and downs in the market."

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus