But the longer-term trend shows pitches are on the rise. After five years of decline from 2009 to 2013, there was a marked increase in 2014 and 2015. Last year, so many US companies reviewed their agencies that it was dubbed a “Mediapalooza”. Some say it is “the new normal” because the media landscape is changing so quickly and advertisers are worried about ad-blocking, online fraud and other transparency issues.
But constant reviews can be problematic. One of the big trends is for multi-national companies to put their media buying up for pitch globally, as Diageo has just done for the first time. Choosing one international agency that can service the client around the world might cut costs, but at what price if the creative output turns out to be homogenised?
Some of these global reviews can be marathon affairs. The Volkswagen and Fox pitches have each taken the best part of a year. One agency chief estimates that the pitch for one big account has cost his firm £1.5 million in manpower and travel costs with no guarantee of success.
Some clients feel they can’t afford a lengthy review, especially if their business is in trouble, and aren’t bothering with a pitch. Spare a thought for Asda’s agencies, which got dumped with no warning last month. This raises a more worrying question for the ad industry about whether clients are losing trust in their agencies.
ISBA, the trade body for UK advertisers, recently accused media-buying agencies of not having “the best interests of their clients at heart any more” and urged brands to tighten their contracts.
Meanwhile, the ANA, the American equivalent of ISBA, is to publish a long-awaited report by forensic investigators Jules and Jeremy Kroll into transparency and whether some US agencies have been pocketing rebates from media owners, without telling clients.
But if advertisers are going to point the finger of blame, they need to ask themselves if some of them are partly responsible for constantly pushing down on agency margins.
These are anxious times to work in advertising, even if you’re not in the middle of a pitch.
