New Study Aims To Calculate The Hidden Cost Of Pitching
The OUCH! Factor Survey is open for submissions, calling on Australian agency leaders and marketers to share their pitching experience with a mission to calculate the hidden cost of pitching for both sides of the process.
The 2022 OUCH! Factor Survey is currently open and closes on Thursday 31 March: https://survey.websurveycreator.com/dandmresearch/OuchFactorNBM2022
Conducted by New Business Methodology, growth consultancy to Australia’s advertising and marketing industry, the survey is this year backed by Advertising Council Australia (ACA), Australian Association of National Advertisers (AANA), Media Federation of Australia (MFA) and the Independent Media Agencies of Australia (IMAA), which are inviting their members to participate.
The inaugural OUCH! Factor Survey in 2021 surveyed 91 CEOs, MDs and leaders from creative, media, digital, PR, and integrated agencies, and 26 CMOs and procurement leads.
It found that the average agency spent 175 hours on each pitch, and a cumulative 1,913 hours a year pitching – investing the equivalent of $100,000 in unbilled hours before winning a single pitch. Marketers and procurement invested 125 hours on the average pitch process.
The data investigates the difference between independent agencies and holding companies, agency size and agency discipline (creative, media, PR & comms, digital, full-service, and consultancy/strategy).
By analysing the opportunity cost associated with pitching, looking at what the time invested in pitching would equate to if it were to be spent on billable activities, The OUCH! Factor Report in 2021 found that it took the average agency 14 months to reach profitability on clients won in a pitch. For some agency disciplines, this rose as high as 39 months.
Julia Vargiu (main photo), founder & managing director of New Business Methodology, said: “The OUCH! Factor Survey seeks to help agencies and marketers better understand the hidden cost of pitching in terms of time, hard cash, and blood sweat and tears. Agency leaders and marketers were shocked to see the results of last year’s survey, which painted an unforgiving picture of how much time agencies really invest in winning new business through pitching, and how long it will take them to recoup the opportunity cost of that investment in the equivalent billed hours. Not to mention the time it will take for that client to become profitable.
“We’re excited to be partnering with the industry associations for this year’s survey and hope to build on last year’s results with a more comprehensive look at the state of pitching in Australia. We invite agencies of any discipline and clients of all sizes to take The OUCH! Factor Survey today.”
Advertising Council of Australia CEO Tony Hale added: “The industry is buoyant and we are very optimistic about the future role for creativity as we emerge from COVID. Workloads are already heavy however, and we need to prioritise our people. Pitching is important for agencies but it is often not fit for purpose. In order to address the inefficiencies that all parties bear, we must quantify the cost and impact of pitching. We are delighted to collaborate with The OUCH! Factor Survey so we can understand this issue from a whole-of-industry perspective.”
MFA CEO Sophie Madden said: “In recent years, scrutiny of the pitch process has increased as both advertisers and agencies identify flaws in certain aspects of the process. The MFA sought to provide guidance in this area through the launch last year of the Successful Agency Pitching Guide, in partnership with the AANA, and we are pleased to be participating in The OUCH! Factor Survey to help shed further light on this important industry issue.”
AANA CEO Julie Flynn said: “Pitching is a necessary part of our industry and this survey is a valuable opportunity for marketers to share their experience of the process, leading to a better understanding of each side’s perspective and ultimately improving outcomes for all involved.”
IMAA general manager Sam Buchanan said: “IMAA members are delighted to participate in this important national survey and to elevate the conversation around how we can improve the pitching process.”
Please login with linkedin to comment
Advertising Council Australia Australian Association of National Advertisers Independent Media Agencies of Australia Media Federation of AustraliaLatest News
Chris Freel: The Uncomplicated Complexity In OOH
As he approaches his first 100 days working in the out-of-home market, former UnLtd CEO and now group sales director at oOh!media, Chris Freel, shares why this so-called traditional media is anything but. When I made the jump from UnLtd, the media, marketing and ad industry’s charity foundation, to the world of out-of-home, many people […]
Cairns Crocodiles The Work: B2B Campaigns Sponsored By LinkedIn
Our judges are working overtime, and our events team hasn’t slept in weeks putting the finishing touches before we head up to sunny Far North Queensland for Cannes In Cairns and the inaugural Cairns Crocodiles Awards presented by Pinterest in just over three weeks. Today, we are celebrating the shortlisted entries in the B2B category, […]
Expedia Launches Travel Shops Giving Influencers Tools To Shopify The Travel Content Experience
This morning, at the EXPLORE conference at the ARIA Resort in Las Vegas, Expedia announced the launch of Travel Shops, a new storefront on the Expedia app that centralises content creators’ travel recommendations. Lead image: Oneika Raymond This innovative feature saves travellers from the tedious task of scrolling through social media to find past recommendations […]
‘The Penny Has Dropped…So We’ve Supercharged How Brands Plan, Book And Measure In One Place’ – News Corp’s Lou Barrett On D_Coded
As a cookie depreciation tsunami slowly approaches, News Corp is sharpening its audience intelligence platform, Intent Connect, with AI tech that enables advanced data collaboration capabilities through planning, booking and measurement. Managing director of client partnerships Lou Barrett tells B&T it’s about future-proofing clients’s digital marketing plans. At last year’s annual D_Coded event, News Corp […]
Advertisers Wasting 42% Of Digital Ad Spend – Next&Co report
With the cost of living crisis biting I think we can all agree that waste is rarely a positive thing...
Introducing New Podcast ‘MID’: Holly Wainwright Rebrands The Mid-Life Experience For Australian Women
The joys of midlife are celebrated in this new podcast. And play it loud if the old eardrums are starting to creak.
TV Ratings (13/05/2024): The Summit Brings In The Eyeballs For Nine
The Summit does the business on its return for Nine. Meanwhile, press photo confirms the importance of headwear.
Snap’s ANZ Agency Lead Ellie Rogers Steps Down Amid Restructure
Ellie Rogers says family was a big part in her next career move. Not so B&T, who only comes to work to avoid ours.
Breast Cancer Foundation NZ’s Awareness Drive ‘The Signs Are Everywhere’ Is B&T’s Campaign Of The Month for April 2024
B&T's ad of the month is both a worthy cause & worthy winner. Even if KFC's Zinger box can feel slightly hard done by.
iSelect Launches New Brand Campaign ‘Save More’ Via Howatson+Company
If there's an agency that's "so hot right now" it's Howatson+Co. And, yes, B&T's unnecessarily bigged-up this new work.
In The Making Expands Into Melbourne
Brisbane PR agency unveils its Melbourne plans. Still adjusting from the pineapple print to the mandatory all black.
It’s Off The Crisper Sale! Introducing KFC’s New Original Crispy Burger Series
This article contains the location to obtain free KFC burgers. Why not send the workie for real world office experience.
Spotlight On Sponsors: Rugby Australia Sign First Dedicated Female Retailer
Don't know your Storms from your Wallaroos? At least you'll be sports sponsor aware with B&T's ongoing series.
Mars Agency Rebrands As Mars United Commerce
Tired of fielding prank calls about nougat & caramel, Mars Agency rebrands to the more long-winded Mars United Commerce.
Azerion Expands Platform With Interactive Video Products
Did your last inter-team marketing brainstorm see 'interactive video' come up more often than not? Read on quickly here.
Inside NGEN: Seven’s Rachael Everett On What We Can Learn From Sport
Were you the wheezy kid that always wagged PE at school? Even more reason not to avoid this lessons-in-sport piece.
Cairns Crocodiles The Work: Changing the World Campaign Presented By Pinterest
Casual dress & motley beards aside, did you join adland to try and change the world? Get tips from those who did here.
Nine And Magnite Strengthen Partnership To Boost 9Now
Nine calls in Magnite to sort out its BVOD programmatic ads. Not before having to switch the plugs from a Type C to a I.
Cricket Australia Appoints Special As Creative Agency For Men & Women’s International Series
Special wins Cricket Australia's creative. Here's hoping they don't get Thomas Keneally to do a poem of 'C'mon Aussie'.
‘Do I want Kids?’ – Laura Henshaw Asks Just That In Latest Podcast
Whether you have kids or not, just know that if you do, it's no lie that they poo, vomit & keep you awake all night.
R/GA Australia Appoints Marie Conley As Executive Strategy Director
Marie Conley returns from the UK after 12 years to take up new role at R/GA. Immediately flabbergasted by house prices.
Zenith Australia Hires Penny Shell As Strategy And Product Lead
Unfortunately B&T refrained from using "the Penny has dropped at Zenith" in this headline. We apologise in advance.
‘It Takes a Village’: New Industry Support Group For Working Parents Launches
Here's a top industry initiative to help adland families. Sadly, no tips on mummy using the F-word after losing a pitch.
Belinda Rowe Unpacks The Forces Of Discrimination That Lead To A Lack Of Diversity In Leadership Roles
With an enviable resume in tow, Belinda Rowe reveals why our boardrooms aren't as eclectic as they really should be.
Marketing From The Cockpit: How Creativity Transformed AB InBev From A Brand Buyer Into A Brand-Building Powerhouse
Do you find American beers watery, insipid & bland? This conference would have been the perfect platform to heckle at.
Cebu Pacific Launches Campaign To Showcase The Philippines As Major Destination For Aussies
In case you needed another reason to visit the Philippines.
Elon Musk’s X Corp Defeats eSafety In Federal Court
Is it just B&T or is Elon Musk slowly morphing into Darth Vader minus the chokehold?
TV Ratings (12/05/2024): Framer Brings Home The Bacon
Lovelorn famers continuing to do good TV numbers. As desperate roof tilers & abattoir employees say "what about us?"
Starcom Pips PHD & Kaimera To Win Gold At Nine’s Agency Games – Check Out All Of The Photos And Coverage Of The Event
Starcom proves the top agency at Nine's Agency Games. Thankfully, no one has asked for urine testing either.
Zitcha Solves In-store Retail Media Measurement With Game Changing Venvee Partnership
Does your in-store retail media measurement resemble a kitchen draw with the screwdrivers & plastic bags? Help is here.
Menulog Delivers More Beef Than Drake and Kendrick Combined, Via Thinkerbell
This "more beef" ad could have also used William & Harry, Oasis, and Bruce Lehrmann & just about everybody.
Komo Tech Announces Landmark Partnership With Fanatics Events To Revolutionise Live Event Experiences
This partnership promises to "revolutionise live event experiences". Hopefully it doesn't alert any sniffer dogs too.
SCA “Disappointed” After ARN and Anchorage Capital Withdraw Takeover Bid
ARN's bid for SCA trips up at the final hurdle. It's also unclear if other states will have to suffer Kyle Sandilands.
About Bloody Time – News.com.au Campaign Secures Win For Endometriosis Sufferers
News.com.au puts aside its passion for 'China set to invade' & overcharging Sydney cafe articles to do some real good.
Fast 10: B&T Talks Brand Rituals, Keeping It Fresh And DE&I With Affinity Media’s Angela Smith
B&T's probing Fast 10 is so quick it's liable for double demerit points on public holidays.
FriendlyJordies Journalist Calls The Police After Allegedly Being Informed Of Gangland Threats By ABC Reporter
What's better than a Walkley Award for journalism? Getting a hit put out on you by a Sydney underworld drug gang.