AAR Report Reflects Upturn In New Business
The amount of new business activity picked-up during 2002 with account moves increasing by 7% year on year, according to the latest research from the AAR and MediaTel’s NewBizMoves database.
According to the report, UK agencies recorded 767 account moves last year, compared with just 716 in 2001. National revenues increased by a more significant 14% year on year to 632, up from 555 in the previous year.
Commenting on the findings, Martin Jones, director of advertising at the AAR said: “Whilst not exactly a vintage year for new business, 2002 was at least an improvement on 2001.”
The report also reflects the insular nature of the advertising landscape, with 84% of reviews only including UK agencies, 10% were found to include one other country and just 8% were global.
A substantial 37% of moves occurred without the costly and time consuming pitching process, of these 59% were creative pitches, 40% were media pitches and 2% were creative and media combined. In 2000 just 17% of clients moved their business without a pitch.
The report also suggested that agencies facing account reviews are unlikely to retain their client, with just 34% managing to hold on to re-pitched accounts. The number of agencies likely to be pitching for a campaign remained relatively steady at almost 3%.
The retail and travel sectors remained the busiest in terms of new business activity, both making up 10% of new business moves in 2002. At the other end of the scale, entertainment, charity and telecommunications sectors continued to show weakness, all taking 4% of new business.
Despite the ongoing advertising downturn, the majority of UK agencies managed to increase or sustain their investment in marketing and new business during 2002, according to a survey completed by AAR in January this year (see Agencies Maintain New Business Spend During 2002).
AAR: 020 7612 1200 www.aargroup.co.uk For the latest account moves see www.NewBizMoves.co.uk. Contact Shaelina Rahman on 0207 439 7575 to set up access.
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