After account management services, media -- not creative -- is the
department most often involved in agency new business pitches, according to findings of a study conducted by Advertiser Perceptions for the Association of National Advertisers and the American
Association of Advertising Agencies.
The findings, part of a just-released "Cost of the Agency
Pitch" report, was based on a survey of advertiser and agency executives conducted March 23-28, as part of an assessment of the costs involved in agency reviews of all kinds, including both new
business pitches, as well as incumbent agency reviews.
When it comes to incumbent reviews, the study found the media department is much less involved, ranking fourth, behind account services,
strategic planning and creative.
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The study also found that specialized media departments -- including both social media and search media -- also are highly involved.
In new business
pitches, 34% of execs cited the social media department's involvement, while 46% cited the department's role in incumbent agency reviews.
The search media department's role was cited by 21% of
respondents in new business pitches, and by 18% in incumbent agency reviews.
When it comes to the cost of agency reviews, the report's top-line finding is that it currently costs about $1.2
million for an agency review when there is an incumbent, and about $1 million when there is an incumbent (see related story).
It also found that incumbents generally retained the business
in two out of every three reviews.