In current climes, of course there may be criticism levied at some clients out there looking to put their media business up for pitch purely to squeeze their agency's fees....however more news breaks in the last few weeks about some big chunky media pitches in the coming weeks and months, putting the halt on holiday leave and forcing agencies to juggle their dwindling resource.
Unilever $5bn
Hyundai/Kia $3bn
Vodafone $1bn
IKEA $0.5bn
Nokia $0.5bn (won by Aegis)
Now I'm not suggesting there is anything wrong with any of these specific pitches, these all involve extremely rigorous and respectable brands and marketers who are inevitably under pressure to deliver more efficiencies from their considerable investments. I'm certain that these briefs will all address the need for innovation and effectiveness in connecting with audiences. They will be evaluating their agencies on their ability to offer something fresh, innovative and commercially sound.
But can the agencies manage?
They are already over-stretched managing existing business, having down-sized resource to manage costs. They are being put under ever increasing pressure by existing clients to deliver ever more for ever less and then they start having $10bn waived under their noses....a tough call. Can they afford to take their eyes of their existing client's balls (so to speak) and flirt with buckets and buckets of potential FMCG billings...
It will be very hard for agencies to take a realistic and pragmatic approach to such potential rewards, some may over the course of the next few months stretch themselves too thin and be unable to manage their existing clients, creating unhappiness on the part of their clients, who will no doubt consider pitching their business...hmmmm its a interesting little gamble facing the agencies this year. I'm sure we will see an example of an agency losing a (previously loyal) client or two because they were too distracted pitching for new business (that they didn't win) and so ignored their existing client, who walks out the door. In fact there's a real chance that by the end of the year we'll find a big agency in real problems having lost existing business whilst chasing pitches they didn't end up winning. Its a scary prospect.
A smart move by a brand like Unilever could be to not intend to pitch at all. With a business of that scale it is no mean feat even managing the logistics of a global media review. Its a huge investment of their own time and money not to mention the millions that agencies will throw at the problem creating spectacular pitches, saving costs and committing valuable resource to the process for 6 months. Just think of the amount of powerpoint slides that would create, I suggested on Twitter that a Unilever pitch might conservatively generate the creation of about 50,000 Powerpoint slides but now I'm thinking it'll be more....Scary. This reflects far more negatively on the agencies of course than it does the client.
So, perhaps Unilever can subvert the usual process by sneaking out a press comment about a possible pitch and then just wait for Sorrell, Brien and Wren to call in quick succession and ask "what do you need...?" Much simpler that way, an entire global pitch process done and agreed in 3 phone calls with their existing (very qualified and talented) roster agencies and get renewed commitments from them for the next two years...Lovely, all wrapped up in time to enjoy a proper media Pimms- summer at Lords right...?
Oh, bugger. We forgot about Hyundai and Kia consolidation...now that's going to be a whole different kettle of fish....
