Agencies are seeing pitching slow as marketers start to wrap up for the year, avoiding onboarding and launching processes over Christmas.
Pitches are cyclical with natural ebbs and flows of hectic periods, particularly in a media sense with most contracts lasting three years.
Unless an agency is doing a horrific job, it is very rare for accounts to move under that average.
As a result, every six months or so agencies can feel overwhelmed by the amount of new business activity, like last year’s pitch frenzy.
But can be quickly balanced with slower periods like agencies have described the second half of this year.
“When the word 'frenzy' is used in any context, it suggests uncontrolled or wild behaviour. Agencies may observe a 'frenzy' internally if they have taken on too many opportunities at one time… never a good plan,” Enth Degree partner Peter Coffey told AdNews.
In recent years, clients have become more respectful around pitch processes at this time of year, agency leaders tell AdNews.
“We have a few pitches on the go at the moment but clients are promising a decision before Christmas - I do doubt that but clients try to give us news before Christmas on average,” one agency leader said.
Another source said clients used to drop a pitch in December without a second thought in a rush to feel like they can complete something early in the year.
“Then they expect agencies to work over Christmas and New Years, but there's no rhyme or reason why that makes sense for any party,” the source told AdNews.
“Bad behaviour definitely still exists but it used to be a big expectation. Even if agency staff continue to take the public holidays off the thought of a looming pitch is sitting on your shoulder over the holidays.
“So it's good that the culture is starting to wane. I'm enjoying that a lot more clients are treating the end-of-year period with respect.”
The biggest new business movements
Media pitches to August this year have totalled at least $715 million AUD.
While the majority of the media pitches have wrapped up for the year, on the creative side many large accounts are still pitching.
Creative accounts currently in play include ANZ Bank, Mitsubishi Motors, Tourism Tasmania, Defence Force recruitment and Westpac.
AdNews exclusive data from COMvergence shows 69 new business wins have been awarded across media agencies this year to August.
Those accounts total $371.7 million USD dollars (est. $552 AUD).
COMvergence has some exclusions to its data such as closed reviews and extensions, for example UM was repointed to the federal government master media account which is worth around $163 million AUD.
The biggest account was Volkswagen AG, which includes Volkswagen, Audi, SEAT, Skoda, Porsche and Bentley brands, for $68.9M (USD) won by Omnicom’s PHD in a global pitch.
Queensland government $47.8M (USD) won by GroupM’s EssenceMediacom.
Spotlight Retail Group, including Anaconda Stores, Harris Scarfe, Mountain Designs and Spotlight Stores, $44M (USD) won by independent Nunn Media.
Nestle, including Kit Kat, Nespresso, Nestea, Nestlé Purina Petcare and Uncle Tobys brands, for $35.6M (USD) won by GroupM’s Mindshare.
Online Educational Services for $21.5M (USD) won by independent Half Dome.
Dulux Group, including Dulux, British Paints, Selley’s, Yates, Cabots, Porters Paints, Feast Watson and Intergrain brands, for $15.4M (USD) won by IPG’s Initiative.
Honda for $10.5M (USD) won by independent Howatson+Co.
While September’s numbers are still being finalised, COMvergence can confirm 10 accounts have been won in the month.
Including some huge accounts such as Amazon won by WPP and Omnicom and eBay won by iProspect.
COMvergence does not track creative agency pitches, some of the biggest ones AdNews has followed includes Accenture wins Tourism Australia pitch, Reunion wins Rest Super, Accenture Song wins NRMA Insurance, Saatchi & Saatchi wins Toyota's retail arm to Saatchi & Saatchi, BMF wins Endeavour Group and Volkswagen extends DDB's contract.
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