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The Pitching Paradox: When Poor Pitch Practices Damage the Product in the Process

16/07/2024
Advertising Agency
Amsterdam, Netherlands
664
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Ogilvy’s EMEA CEO Patou Nuytemans explains why she’s calling for agencies and associations across the region to unite in their push for fairer, better practices in pitching
Something has got to give. Balancing the balance sheet whilst retaining and rewarding talent is a fine art at the best of times. But when pitching for new business – the very thing that should grow an agency and build its teams – is instead weighing it down, surely, it’s time to reset the scales?

Pitch processes exist to assess and buy creative expertise and when designed in a way that respects both parties, they are effective. I have undoubtedly seen an evolution in recent years as more progressive approaches to pitching have emerged. That said, poor pitch practices persist – from lengthy commercial negotiations and even the rise of e-auctioning, prioritising a procurement-driven process that undervalues creativity and commodifies the agency model by making choice a matter of pure price.

Approaching agencies as vendors versus true partners poses significant risk – and ultimately, is counterproductive as it damages the very product that a client is buying: the creative thinking of our talent. 

In a people-first industry like ours, we need to redefine the parameters of pitch practices to safeguard and show up for our people. Teams of today require balance and the industry relies on continuing to attract the best talent for the best creativity – and that needs us to say no to unfair requests, using our resources to instead invest in our teams. 

I want to be clear, as a true believer of creativity, I love a pitch. It is the ultimate opportunity for an agency to show off its creative prowess and help a client imagine a new future. The process demands us to bring talent together with diverse and deep-set expertise to solve real-world problems via creative solutions. There really is no higher calling when it comes to what creativity can achieve. But if creativity is our superpower, then bad pitch processes are our kryptonite.


A Shared Concern Across the Industry


Creative agencies are ecosystems of talent. This ecosystem is what makes the magic and the machine happen by driving impact for our clients. But the strain that poor pitch requests put on people throughout the industry is undeniable, burning out talent in ways that immediately impact the relationship and affect creative product long-term. If our ecosystem isn’t nurtured with the right conditions, I am concerned that we could endanger creativity.  

Pitch processes are always a topic of discussion during European Association of Communications Agencies (EACA) meetings, where I sit on the Management Committee, with poor practices being an issue across the EMEA region. Pitch timelines often require teams to work across weekends and holidays, with agencies sometimes delivering fully-fledged strategic and creative work as part of the pitch – effectively giving away their intellectual property for free. The increasing weight that bad practices put on our teams is a shared concern. Tamara Daltroff, CEO of EACA, states, “This is a crucial topic not only for EACA but also for the future of our industry. In today's changing global economy, agencies and clients face challenging foundations for collaboration. When it comes to selecting an agency, it may not always have to be a creative pitch. There are other ways to select an agency that can be more cost-efficient, sustainable, and effective.”

There has always been pressure associated with pitching, but in today’s environment – where clients need more for less and teams are already operating above capacity – we are in a vulnerable position. Creative agencies and the ideas they cultivate and deliver on, drive impact for clients beyond the bottom line, and can drive positive change for the planet and society. The importance of a thriving agency-client relationship cannot be overstated. Collaboration breeds creativity, and the damage from bad processes and undue pressure on agency teams does not serve the client's best interest. Would you test drive a car for miles and still expect the tank to be full?


The Financial Toll of Pitching


Recent surveys highlight the high costs associated with pitching. According to a report by the ACC in Belgium, the costs in terms of time spent and out-of-pocket expenses for agencies can amount to an astonishing 83% of the profit before tax (PBT) for the average advertising agency, and 42% for PR and influencer briefs. This is a global issue, the 4A’s and ANA in the US have also reported that the average pitch cost for a non-incumbent agency is over $200,000 and that even a winning agency could take 18 months to see a profit – money that could otherwise be invested back into our people and creativity. Similar internal surveys conducted by EACA show that the pressure on agencies has not changed. Tamara adds, “Unfortunately, many bad practices still exist in the industry, causing talent to leave. Although there is much that agencies can do to protect their people, without clients realising the impact of their bad behaviour and treating agencies as partners, we won't be able to attract the best talent and creativity that our industry deserves.”


Buy-None-Get-IP-Free


Creative proposals are the heart of the pitching process and are requested in a substantial 73% of all briefs, as recognised by the ACC. The high demand here clearly shows that clients are looking for and value creativity and ideas, and in an industry where what people do – ideas and creativity to imagine a better future – can’t be replaced by AI, we need to protect this IP. And in some instances, agencies are providing entire campaigns which brands are then giving to internal teams or winning agencies when price has become the deciding factor. 

Ideas are not free. They are our greatest leverage to solve business challenges and we cannot deplete our resources, jeopardise our people, and undermine the work we do for our clients to satisfy unreasonable requests. There should always be an opportunity for an element of ‘try before you buy’ to allow clients to trial an agency’s creative credentials. However, you can’t truly evaluate the experience of working with an agency in an artificial environment. As with all effective partnerships, the foundations should be respectful and representative of the true working relationship from the very beginning. This includes establishing trust in timelines, communicating expectations and maintaining an on-going dialogue of information to inform strategies. Without this foundation, the product and the people will be bruised before work begins. 

We have a responsibility to ensure that what we are selling is of optimum standard. It is not productive if poor pitch practices drain our creative talent. When I look across the region, can I hand on heart say we are doing enough to protect our talent from burnout and ultimately the industry from a creative deficit? I’m not sure I can.


What’s the Answer?


There is no escaping the necessity of the pitch process. It is fundamental to our industry and when done right, the favourite part of the job for many. We are not talking about ‘ditching the pitch’, we are talking about doing better. 

Some recent initiatives have pointed us in that direction, like the Pitch Positive Pledge in the UK to set a standard of true partnership between agency and clients, and the La Belle Competition that was launched in France. Yet in a region the size of Europe, they do not feel like enough. 

If there is one thing that I have learnt from being part of a network, it is that there is immense strength in numbers. Naturally in the pursuit to win, competing agencies overlook the option of working together for fairer conditions, for all and for the future of our industry. I believe it’s time that we all stand together to educate our clients on the implications of poor practices, the increased value that comes with the good and commit to industry initiatives seeking to make a change. This means working with local trade bodies to push the topic to the top of their agenda. This doesn’t simply mean calling out the bad, we should, and we will say no to unfair requests, but also, we must champion good practices when we see them to relentlessly raise the bar for talent and creativity. Across the industry. Across the region. 

All in favour say aye?
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