The number of small account pitches has risen by almost 40%, but big budget pitches have fallen by almost the same level, according to the latest report from the AAR.
The new business figures sourced from the account moves database, New Biz Moves, for the period January to July 2001, show the number of pitches over the £10m mark has dropped 46% from 234 to 126 in comparison with the same period last year.
However smaller account moves, under the £2m mark, have increased from 85 to 116 year on year. The figures include all international and European activity involving UK agencies.
According to AAR’s director of media services, Paul Phillips: “The downturn in new business activity is due to several main factors including the follow on from the election, which led to advertisers adopting a ‘wait and see’ policy with regard to pitches”.
He added: “The knock-on effect of the US climate has also revealed the dependency of agencies on US media owners, and on the activities of IT sector in particular.”
The AAR remain optimistic that dotcom fallout has subsided, and that the next couple of months will show a return to average levels of expected activity, more akin to that in 1999. New Biz Moves will examin these figures in their next quarterly report.
For future new business, Phillips predicts that it will be creative agencies before media agencies that will lead the upturn.
NewBizMoves is the online historical account moves database tracking new business activity back to 1997. A subscription based service, it provides reports and top 10 tables based on account wins, losses and business value.
For more information on account moves activity visit www.newbizmoves.co.uk
