Ad Agencies Falter On New Business Staff

Advertising agencies are dedicating fewer full-time staff to new business than direct marketing and sales promotion agencies, according to a new report from the Advertising Agency Register (AAR).

The report, carried out during the last quarter of 2001, shows that only 62% of advertising agencies employ full-time new business staff, compared with 83% of direct marketing and sales promotion agencies.

On average agencies across all disciplines employ between two and three staff to work on new business, but almost a third of new media agencies employ more than three people.

AAR director of advertising and media services, Paul Philips, said: “I think that as the marketplace becomes more competitive and as media budgets develop agencies will invest more in new business efforts – both in terms of staff and pitching resources.”

The study, which surveyed over 150 agencies, emphasises that new business and marketing budgets are linked to agency size, with one in three of the top twenty advertising agencies allocating over £500,000 annually, excluding salaries. Media agency budgets were found to be more modest with most setting aside no more than £100,000, while the majority of digital and new media agencies allocate £50,000 or less to new business and marketing each year.

AAR: 020 7005 3110 www.aargroup.co.uk

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