“Pitches plummet across all media” (Campaign 8th January)

The AAR publishes its annual summary of pitch opportunities in 2009 and predictions for 2010. Key statements include:

• Number of new business pitches down by 21%
• Advertising reviews down by 20%
• Digital pitches suffered a 33% decline
• 24% less DM reviews
• Full service media pitches down by 24%

It could be argued that this is tantamount to scaremongering. I’m sure this is not the case, but on face value these are concerning figures and offer little optimism for recovery in 2010. However, if a step back is taken, previous figures are considered and everything is overlaid with common sense, there are certainly reasons to be optimistic for the right kind of agencies with the right kind of business development outlook and strategy.

To a degree, the figures should be taken with a pinch of salt. In January 2008, the AAR reflected on the figures from 2007, stating that direct marketing pitches were down by 47% from 2006. However, the likelihood is that, at the time of the digital boom, pitches were labelled as “digital” despite containing a heavy element of traditional direct mail. It transpired that direct marketing pitches increased by 10.4% in 2008. What does an “integrated” pitch get labelled as in the AAR statistics, as the make up of that pitch would differ each time? What is clear is that the pitch discipline waters are too muddied to develop any real insight or identify any true trends.

That said, the figures are interesting, but more in part, due to the fact that the pressures of 2009 forced marketing decision makers to review their actual pitch process rather than the agencies they used.

The pitch process is a long and laborious one and with increased pressure on time and resource, one that marketing departments could well do without. On top of that, in times of economic downturn, the client is king. Incumbent agencies will bend over backwards to retain an account and inevitably clients are able to drive down fees and demand more for their dollar.

However, if that were true across the board, there would be no new business opportunities and we know from our work and from our clients that this is not the case. There is no doubt that there has been a rise in the stock of small to medium sized agencies able to offer that “big agency” experience, but with the flexibility, cost-effectiveness and high service levels only a smaller agency can provide. Pitches involving this profile of agency may well fall outside of the AAR’s remit.

The AAR summary also rightly identifies that clients are moving agencies without pitching. For new business agencies and their clients, this signifies the Holy Grail. A core aim of any new business program is not predominantly to get agencies onto pitch lists (indeed, in some campaigns it is a key objective to avoid them). It is to get you and your agency in front of the right kind of prospective clients with the right kind of work and the right kind of budgets. If we can get you in early enough and we can work together to build that relationship, possibly undertaking smaller “test” projects on the way, the need for pitching is often negated. That is the beauty of a well handled, proactive cold calling approach. Often smaller agencies are involved in a pitch to “make up the numbers”, so why not push to develop that relationship and prove yourself before that review/pitch takes place.

A “back door” approach will ensure you are front of mind when reviews are happening and a good new business program will help you achieve this.

I thought the issue of Marketing Week (dated 17th December) was an interesting read, namely because it was the last issue of the year AND decade! Reflecting back over the noughties there have been highs; such as more recognition for women in business and politics, but also lows with (the global recession obviously springing to mind).

I opened my copy of Marketing Week on the 18th December and I waited with bated breath to see what the predictions might be for 2010. As a sales professional, working for a new business agency, I have often found the predictions given by the magazine at the end of the year to be extremely useful when speaking to marketing prospects in January. Let’s face it, if you are going to call someone then you had better have done your research and being able to demonstrate forward insight really works with prospects.

Last year, ‘Marketing Week’ decided to opt out of a full-length feature giving an overview of the year and predictions for next. Instead, they focussed on a subject, which has been topical for some time – namely ‘the bruised relationship’ between marketers and procurement.

The article explains that ‘value’ will be the buzzword of 2010 as businesses continue to keep a close eye on budgets. This is something we can relate to as a business development agency when we speak to marketing prospects on the telephone. The message is clear, marketing spend is there but companies will have to ensure that they achieve good value for money when deciding which agency to appoint.

This year, procurement will play an increasing role in achieving good value for their business. This does not mean cutting costs but genuinely growing the business through a value added approach. It is true to say that marketers have tended to eye procurement through suspicious eyes in the past, but the need for both sides to work together is paramount. Also, an understanding of each other’s roles will go some way to achieving this.

I will certainly consider this argument and when I next get directed to a procurement department, rather than fearing that I won’t get anywhere, I will ask them what measures they are taking to ensure a good turnaround of agencies with the right experience.

We’d love to hear about your experiences with procurement departments.

I read an interesting article in Design Week on 10th December.

This article gave a rough prediction on 2010 marketing trends and it picked out five key directions for this year.

I was extremely excited when I read that one of the key directions was going to be digital touch points in the retail environment. This subject is familiar ground for me as one of my clients that I help generate new business for is an ecommerce agency who are particularly forward thinking in this area.

Last year, I had the pleasure of introducing the concept of Instore Kiosks to marketing prospects. Instore Kiosks are essentially a robust, touch-screen version of an eCommerce store. It allows the consumer to search for products, colours, and sizes that aren’t on the shelves. This concept can also be applied to an offline store to save the customer time when browsing. Another area of interest has been mobile applications; online stores have come up with tens of thousands of applications to enhance the handset experience and this is potentially a great area for growth in the retail sector this year.

Of course, many of you will have already heard of these mediums last year, but the difference this year is that retailers will be under much more pressure to move with the times as marketing becomes more sophisticated and technical. What started off as a discussion last year will now be put into practice.

If you are a creative agency working in this sector, we would be interested to find out what your thoughts are on this subject.