Tuesday, February 12 14:54:00
Irish advertising agencies spent E10.6m pitching for business last year alone, according to Institute of Advertising Practitioners in Ireland (IAPI).
The advertising governing body today launched new guidelines in a bid to reduce escalating pitching costs in the advertising industry.
Through the publication of the Finding the Right Agency guide and the development of a dedicated website www.iapi.ie/pitchguide, it aims to streamline more cost-effective pitching practices in the industry.
It said that this is in direct response to the huge financial and unsustainable burden being placed on advertising agencies and the industry at large.
Currently creative advertising agencies are requested to present detailed creative proposals at pitches and IAPI estimates that eighty per cent of that work never actually gets produced. IAPI described this as highly wasteful of agency talent and resources.
In an IAPI survey carried out amongst its members to investigate pitching costs in 2012, the agency time costs which totalled - E10.6 million - are deemed to be crippling the industry.
These costs exclude the third party costs of producing storyboards and animatics and material costs also spent by agencies trying to attract a new client. Substantial costs continue to be absorbed in the industry through outdated pitching practices. The guide has been developed in direct response to member concerns around how the industry finds a better and more effective way to pitch to assist both clients and the agencies involved. It aims to reduce the pressure currently being placed on Ireland's advertising agencies to foster growth and ultimately generate employment.
According to Tania Banotti CEO, IAPI, "Current pitching practices are having a detrimental impact on the industry. The new guide makes the process more straightforward for all involved. It will benefit advertisers by allowing agencies to focus on the strategic challenges facing brands rather than on speculative creative work, most of which is never used in a campaign."