DM leads way for new-business staff

Advertising agencies are dedicating fewer full-time staff to new

business than their counterparts in direct marketing and sales

promotion, according to a survey from the AAR, carried out during the

last quarter of 2001.



Only 62 per cent of advertising agencies have full-time new-business

staff compared with 83 per cent of DM and sales promotion agencies -

this figure outstrips even the full-time human resource dedicated to new

business by the top 20 advertising agencies.



Across all marketing sectors, most agencies employ between two and three

staff to work in their new-business team, but almost one-third of

companies in new media employ more than three people.



External "cold calling" companies, who chase new- business leads, are

more favoured by PR consultancies and marketing and sales promotions

agencies.



The study, carried out among 150 agencies, notes that new business and

marketing spend are linked to agency size with one in three of the top

20 advertising agencies spending in excess of £500,000 annually,

excluding salaries. Media agencies spend much less with most allocating

no more than £100,000.



Martin Jones, the director of advertising at the AAR, said: "The most

interesting thing is the way that the direct marketing agencies have

learnt about new business from the advertising agencies, and that they

now seem to be leading the way."



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