Agencies spend £38k on average pitching for new business

by Ben Bold, Brand Republic 09-Nov-05, 08:10

LONDON - Design agencies are forking out an average of £38,000 a year to pitch to potential new client companies, according to a report.

The research was conducted among 200 UK-based design agencies by trade organisation British Design Innovation and one of its members, Firedog Design, examining the issue of resources devoted to free new-business pitches.

The 'Pitch verus productivity' report also found that over 25% of projects or tenders are not awarded as a result of the pitch process, and 63% of the agencies surveyed said that they had experienced this outcome.

According to the report, the figure was backed by client companies. The key reasons given included change of marketing strategy, reduced budgets and lack of chemistry with agencies.

The research also found that agencies are losing 12% of man hours every year as the result of free pitching.

This September, BDI published its Design Industry Valuation Survey 2005. The report that found that the UK design sector fought back from a 26% drop in turnover in 2003/2004 with an increase of 18% to £4.6bn, by taking on clients with larger budgets and creating stronger business proposals.

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