EACA Calls Time on Unsustainable Agency Model
Agencies across Europe are likely spending hundreds of millions each year on pitching, according to new data from the European Association of Communications Agencies (EACA). Based on responses from 412 agencies, representing 16% of EACA’s membership, the average agency now spends 650.937 € annually on pitching to win new business.
This figure represents a sharp rise in resource demands compared to past years and underscores what many in the industry are calling an unsustainable model. “With agencies spending over 650.000 € per year just to pitch, they would need to win business worth at least 7 million euros to cover those costs, assuming a minimum EBITDA profit margin of 10%. Clearly, this is not sustainable”, remarked Charley Stoney, CEO of EACA and president of VoxComm.
The Cost of Pitching survey also revealed average costs of 43.804 € per new business pitch and 28.355 € for incumbent reviews. Media agencies bear the highest people costs, often exceeding 65.000 € per pitch, driven by demands in data, digital, and multi-channel strategy. On top of internal staffing costs, agencies report average out-of-pocket expenses of 9.000 € per pitch, covering freelancers, production, travel, and materials. Despite this high investment, only 4 out of 10 winning creative ideas are actually implemented by clients.
Beyond the financial burden, the survey highlights significant human costs. Agencies typically dedicate teams of five–eight staff per pitch, with each contributing over 44 hours. These demands have a direct impact on morale and well-being, as shown in EACA’s 2024 Agency Sentiment Survey, which identified mental health as the second most pressing issue across the industry.
“With thousands of agencies across Europe, we estimate this to be a billion-euro problem across the industry with no guaranteed return,” added Charley. “No other sector routinely gives away its best thinking for free. We urgently need to standardise fairer, more transparent practices not just for financial sustainability, but to protect the mental health and motivation of our people”. Nearly half of all respondents reported feeling overwhelmed at work, citing pitch fatigue and unrealistic timelines as key contributors to low morale and high turnover.
“If six out of 10 winning ideas never see the light of day, we are also duplicating creative hours. Agencies aren’t only paying the price during the pitch: they are often forced to start again from scratch after winning, which voids the return on investment entirely”, said Charley. To address these challenges, EACA would always advise marketers to start the agency selection process with Credentials and Case studies before any speculative strategic or creative work is undertaken. The EACA is urging the wider industry to advocate for processes that promote fairness, transparency, and mutual respect between agencies and clients.
“This is a wake-up call for our industry as it works both ways”, said Charley. “Agencies are responsible for their own decision making when it comes to pitching or not. It’s time to stop normalising broken processes and start demanding better. Ethical and effective selection practices must become the standard”.
