Average Value of Pitches Drops During 2001

The average value of creative and media agency pitches dropped by 10% during 2001 to £2,536m, according to MediaTel Group and the AAR’s NewBizMoves 2001 Annual Report.

The report, which is partially based on data from the marketing, adverting and media trade press, shows that the extent of new business activity increased during 2001, with the number of account moves rising 31% year on year to 734. However, the AAR stresses that this is due to increased coverage of smaller account moves in the trade press and should not be taken as a reflection of the market as a whole.

The average budget per pitch was also down year on year during 2001, slipping from £6.4m in 2000 to £4.5 million last year. According to the report, 2001 will probably be best recalled for a lack of major pitches, elongated decisions, abandoned pitches and tender processes.

Director of advertising and media services at the AAR, Paul Phillips, said: “2000 was an extraordinarily active year in terms of new business activity, so on the back of this 2001 was bound to be a quiet year.”

He added: “Things are looking more positive. In 2002 the market is coming back, it is being driven by market leaders who can’t afford not to pursue new business and market themselves aggressively.”

The full report, which is intended to provide new business directors and agency management with an overview of the levels of client business activity, is available on the AAR’s subscription database www.newbizmoves.co.uk.

AAR: 020 7612 1200 www.aargroup.co.uk NewBizMoves: 020 7439 7575 www.newbizmoves.co.uk

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