This isn’t your typical industry pitch narrative, in fact, it is probably the opposite.
We’ve all seen the horror stories. Advertisers who haven’t enlisted the help of an expert invite way too many agencies to pitch and treat it like an auction, potentially without any intention of moving the business in the first place… and wasting everyone’s time. It’s an industry favourite tale, even if a little biased in one direction.
I’m not suggesting it doesn’t happen, but I’d suggest it happens less than you think.
It would happen even less if fewer agencies took a “win at all costs” approach. That doesn’t mean agencies are to blame, but some do enable opportunistic clients.
I have mentioned before that our experience is different. Clients who engage us to run pitches are typically happy to follow our guidance at all stages. They want agencies treated fairly and respectfully throughout. Their priority is getting the right outcome with the least disturbance to all parties.
If this isn’t true, we walk away. I wrote about one such case only a few months ago.
But onto today’s topic.
We have seen an interesting new player emerge – let’s call them the “speculative agency”.
But what is a speculative agency?
A speculative agency is one who is keen to be invited to pitches. The more the better, and they are often proactively lobbying to get invited to even more – potentially too many for them to manage.
But it will be ok, they are hedging.
They are happy to start the process, but at the first sign of adversity… they pull out. A little constructive critical feedback, or a meeting that didn’t feel great and they are out the door. They prefer to start with a wide funnel and then focus energy on the pitches that are going well and not wasting resources on one that seems only an even money chance of success.
You are probably saying… well it is their prerogative.
You are right, it is. But over time, there will be consequences.
Firstly, not all agencies that pull out of pitches are speculative agencies. Some have very good reasons to withdraw, and we support them doing so. Or even better, declining the invitation in the first place if it isn’t right for them. We’ve done this ourselves several times.
For speculative agencies it’s less so and the reasons are flimsy. It’s not that hard for someone with a little experience to see through them.
What is likely to happen?
There is one obvious outcome – a good consultant will see the pattern. You can expect to be invited to fewer pitches. It’s karma, giving you fewer chances to be a speculative agency.
There is also a less obvious but also likely outcome.
To guard against agencies pulling out of pitches, clients will want to invite more agencies. If there is a risk that two or three will pull out, they’ll start with more, thus, restarting the cycle of overcrowded pitches, more frustration and industry folklore.
Our advice: don’t be a speculative agency… it doesn’t help anyone.
Our warning: don’t be a speculative agency who then complains about overcrowded pitches. No one will be listening.
Mark Leone is partner and managing director of Madclarity.
