What is the financial cost for an agency to pitch?
In developing a financial cost model for the agency pitch process, you need to accept there are many variables that will impact the result. These variables broadly include the actual process scope, timeline and steps, the number of people involved both on the agency and advertiser side, and the scope of the appointment from project to a global appointment and all variations in between.
For the sake of manageability, we have made some assumptions to define the process that we have used to create a pitch process and then applied the relative data and benchmarks to calculate the financial cost for a pitch. Even then, the result is a range to accommodate the variations within this defined model.
Procurement managed pitches can increase agency resources utilisation by up to 50%. This is driven by a more complex and comprehensive RFP, which replaces the Credentials document. The RFP adds significant time as it increasingly requires detailed responses to procurement supply chain issues such as compliance with the Modern Slavery Act, Zero Net Emissions, CSR, Diversity, Equity and Inclusion programs and supply chain security and risk. These are topics rarely addressed in the Credentials document, which focused more on capability and case studies. They are also issues which requires a wider engagement across the agency to provide the detailed response required. The procurement managed pitch will also require greater detail and rigour at the financial and negotiation stage, with the negotiation process often becoming longer and more protracted as procurement investigate all possible opportunities with the agency.
- Select the appropriate calculator for the pitch type – Media or Creative, Pitch versus Procurement Tender (RFT)
- Enter the duration of the pitch in the field in months (Usually between 1 and 12)
- Enter the weighted average agency billable hourly fee in the field in GBP
- Read the resulting cost calculation in GBP
- Enter the number of agencies being invited to pitch or tender (Usually between 3 and 8)
- Enter the number of agencies that will go beyond credentials and chemistry session (usually 3 and up to the number being invited to pitch or tender being 8)
- Read the total cost of the proposed pitch in GBP