The Australian market is following a global increase in media pitch volumes, with agencies reporting higher activity in the March quarter.
According to COMvergence global data, pitches were up 133% with media billings of more than US$100 million in 2021.
For Australia, consultancy R3 reported total new business up 50% to $US15.9 million for media and creative agencies in February 2022 compared to the same month last year.
Publicis Media's head of new business, Helena Snowdon, confirmed the pace is continuing in Q1 2022 with “higher activity” than normal.
“This could be for the simple reason that clients who held off pitching their business during 20/21 in the interests of stability now want to get stuck in,” she told Adnews.
“There has been an increased proportion of defensive pitches. Why? Marketers want more than ever to be convinced they have absolutely the right team and model to deliver against all odds.”
This is Flow CEO Jimmy Hyett reported similar momentum in the independent agency landscape, with the business seeing a 285% YOY increase in pitch requests over the last 12 months.
Hyett said demand has seen existing and even competitive agencies wanting to collaborate with media partners.
“Many new relationships have been forged through creative, content and PR agencies, but now we’re seeing the most progressive media agencies form alliances too, referring business where clients don’t fit either through conflicts, resourcing or services. These partnerships are driving mutual growth benefits, alongside incredible client results thanks to a combination of all the best agency partners working as one.”
Resourcing pressure has led to ‘smarter’ pitching choices for agencies, according to Hyett.
“Thanks to the industry wide talent shortage, this has enabled us to pause and ask the question – is this new business right for us? Previously any opportunity was considered a good opportunity, but now to preserve the talent, clients and really harness a thriving culture, we’re now making more strategic decisions to only pitch with client partners that make strong commercial and cultural sense.
“This has led to better, more positive, productive and profitable relationships, resulting in a long-term benefit that’s felt throughout our whole organisation.”
This year, media agencies have also reported an increase in tender documents requiring questions around Corporate Social Responsibility (CSR) and Environmental Social Governance (ESG) and Diversity, Equity & Inclusion (DE&I). Snowdon said on DE&I, Publicis is asked about its Reconciliation Action Plan and Equal Opportunity Employment.
“The cost push agencies have suffered for too long is being replaced by a welcome priority focus on quality, contemporary, connected thinking. It’s also about clients wanting to be, and being seen to be, better partners.”
Mindshare Sydney MD Kate O’Ryan-Roeder confirmed the change to pitch briefs in 2022.
“Sure, fees and rates are always a factor but increasingly, we’re seeing and welcoming pitch briefs that speak to the importance of values alignment between client and agency,” she said.
“Aligned with that, we’re seeing the rising prominence of ESG factors within pitch briefs, whether that is sustainability, a focus on DE&I, or beyond. As an agency passionately committed to Good Growth, we’ve been excited and energised by some of the pitch briefs we’ve already seen in market this year.
“And lastly, whilst data and tech capabilities are not new on pitch briefs, the proof is now in the pudding. Clients are asking agencies to show them how we can bring their data ambitions to life. Being able to craft and implement sustainable and future-proofed data and technology strategies carries a lot of weight, and will swing a pitch decision in 2022.”
For Carat Sydney MD Lauren Small, the focus on DE&I and the return of physical pitching stands out this year.
“We’re really seeing DE&I come to the forefront in pitches this year, and in a more holistic and rigorous fashion. DE&I now extends well beyond a few RFI questions hidden amongst rows of nitty gritty media information, and so it should.
“As for being back in a room in person with real humans, there’s nowhere I’d rather be. The energy and the experience are game changing when face to face, and it’s something I’ve dearly missed in these last two years of mostly virtual pitching. This isn’t to say we didn’t learn a lot from pitching virtually, from accessibility, to breaking down borders and democratising the pitch experience, it’s now about finding the balance between the two modes - that’s the sweet spot.”
At Archibald Williams, head of client and strategic services Kiranpreet Kaur confirmed agencies and clients are “on the hunt again” in Q1 2022 but urged discipline in brief documents moving forward.
“We’re still seeing long, detailed forms for submission, and at times they feel incredibly redundant and unnecessary. I recently saw one asking for a quick turnaround on full campaign strategy concepts and campaign ideas, along with the usual RFP documents.
“Now, many people would say, “that’s normal” and “we’ll make it work". Yes, we’re agencies, and of course, we can but post-pandemic self-reflection has made agency employees and employers question whether we should.
“On the flip side, I recently saw a client with a simple list of five questions – clear and to the point, almost like a speed date before it got more serious. A far more efficient approach to inviting and filtering candidates.
“There’s no denying that the hunger and hustle from agencies hasn’t changed. We will give it our all, but it’s a shame to put agencies through the wringer before even starting the relationship.
“It all comes down to respect. The submission form for any pitch is a strong reflection of how a client foresees the dynamic of respect in the future, and we need to start pushing this as a barometer more.”
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