1. Agency Structure, Search and Selection
2014
1
THE “7 DEADLY SINS” OF
MEDIA AGENCY PITCHES
Morten Pedersen, GLUE2020, gives some advice on how advertisers can manage some of the greatest challenges they
face when running media agency reviews.
We live in an imperfect world.
It’s a simple enough realization that most
agency reviews miss, with far reaching
consequences.
Google the terms “Media agency pitch best
practices” and you’ll instantly get over 8.7
million results; each one created to help you
solve a series of issues through structure,
clarity and standardization – yet, none of them
sets out the main reasons why pitches fail to
deliver. So put those ivory tower best practice
methodologies back in the drawer and come
back to the real world.
When it comes to media agency pitches, there
are only 7 key things that will make your pitch
stand out; 7 opportunities to make or break
your review. The question is, will you be a
Saint or Sinner?
Fail #1: Not dealing with the past
How you deal with the incumbent throughout
the process is a key risk area that most likely
will cost you big time if you get it wrong. For a
start, if you don’t have visibility over what you
are getting from your incumbent agency, then
forget launching a review!
Secondly, agencies are smart and mostly come
well prepared. They pitch to an average 7
clients at any time, and know a lot more about
your business than you think (for instance,
your track record with incumbents and
likelihood of change).
They can also spot a hotshot new CMO looking
to make their mark at 50 paces. So establishing
trust early on is key… and it all starts with
being upfront and honest about your motives
with all competing agencies.
Fix #1: Make a brand new start
- Prepare a full exit strategy from the
incumbent agency, setting out the data
points you need to collect (and by when). It is
critical that you only inform the incumbent
agency about the review once you have
90%+ of the data on your checklist.
- When you talk about your reasons for a
pitch, be clear – why are you reviewing your
business? Is it purely financially driven, to
capture new market share, is it part of
corporate policy? Never be economical about
the truth, you’ll never get the best from
them.
- Be clear on whether you want the
incumbent to answer the brief – or merely
fix the cracks of the existing relationships. It
will help them immensely when they
construct their pitch strategy.
- Reduce friction between the incumbent and
any new agency by agreeing a transition
plan prior to appointment. And get separate
transition teams from the day-to-day
account teams. It will make everything go
easier.
Fail #2: Underestimating the challenge
Advertisers generally underestimate the
disruption a review can cause, and it can result
in unnecessary tension between various client
parties (particularly in Marketing and
Procurement).
What often causes problems are
misjudged/non-aligned ambition between
stakeholders and a lack of data. Pitches need a
business case, but when that is lacking, the
process gets less focused and too many areas
are left open to interpretation. And this, my
friends, can make even relatively simple
projects feel cumbersome and more difficult to
manage than they have to be.
Fix #2: Come prepared
- Set up a pitch steering committee to help
with the preparation and the decision-
making process and criteria throughout
review.
- Secure alignment on the agency model and
scope of work you want the agency to cover
before you launch the process.
- Create a baseline and stretch targets before
issuing anything to the outside world
(covering softer issues like strategy and
planning ambitions as well as more
commercially oriented areas).
- Identify and agree commercial negotiation
levers and walk-away positions before
entering negotiation (approved by the
sponsor)
- Remember, everything can’t be solved in
Year 1. In fact, strategy and operational
benefits most likely kick in in Year 2 and 3.
This is part of managing expectations of
your team.
Fail #3: Choosing the wrong pitch
consultant
A major reason for agency complaints is that
clients don’t have the necessary in-house
experience to run a seamless pitch – and a
consultant is called upon.
The problem here is that too often, the
consultant is chosen on the wrong assumptions
and hence ends up doing more harm than
good.
For instance, many consultants are simply self-
appointed experts, others operate in the ‘grey
zone’ where they also earn good money from
servicing agencies, small wonder that lack of
integrity and impartiality is something that
needs to be confronted up front.
Fix #3: Choose wisely
- Always go through a due diligence when you
select a pitch consultant, getting references
from at least 3-4 similar-sized clients who
have been through a comparable type of
project with the consultant.
- Take time to meet shortlisted contenders
face-to-face in order to reduce risks and get
to know consultant’s philosophy and
commitment to your success.
- Check they have the skills you need in the
review. For instance, if the incumbent
consultant is expected to run a media
review, do they actually have deep
knowledge of media trading?
- Never hire the pitch consultant firm who
structures your review to serve their own
purpose post-review (i.e. with media
auditing, service reviews, etc.) Choose the
one that puts your short and long-term
interests first.

2. Agency Structure, Search and Selection
2014
2
Fail #4: Not appreciating the politics
There are many reasons why client/agency
relationships can run deep within an
organization – the challenge is to ensure they
do not stand in the way of a successful pitch
outcome.
If you fail to deal with, or at least understand,
these ties before the pitch is made public, you
risk key, business relevant decisions being
undermined by personal preferences, legacy
myths and nostalgia. It quickly becomes an
uphill struggle entirely of your own making.
Fix #4: Form strong and early alliances
It was Plato who said: “one of the penalties for
refusing to participate in politics is that you end
up being governed by your inferiors.”
- Securing a sponsor at the very highest level
in both client and agency organizations,
makes everything run smoother.
- Brief your most senior people on them
helping manage expectations internally and
with all of the pitching agencies. Make them
part of the process.
- Keep score sheets of absolutely everything
that happens, from start to finish. This will
make your case stronger, it will help when
giving feedback, and it will make the
ultimate decision much easier.
- Share top-line evaluation criteria and
decision process with pitching agencies
(winning or losing) – too often this is a lost
opportunity to learn how you can improve.
Fail #5: Not knowing who to talk to
Talking to the wrong agency people will slow
down the process and ultimately end up by
sending wrong messages to senior agency
stakeholders.
Furthermore, operating agencies have less and
less power when it comes to dishing out extra
value (this mostly comes from the holding
group level or the trading group). You really
need to engage with agency people who can
make key decisions and address problems
immediately.
Fix #5: Start talking to the right agency
people
- Issue the brief to the holding group
(including for the incumbent), and let them
determine which operating agency to put
forward. But keep the contact at holding
group level; you’ll need that when talking
commercials.
- Having the agency new business person
running the project makes a lot of sense, at
least until tougher decisions need to be
taken; after which, the operating agency
CEO/COO and holding group should take
over.
- Media trading, rebates and value-adds sits
above operating agencies, so getting access
to the appropriate trading specialists
requires top level engagement in the agency
food chain.
Fail #6: Best practice overload
We’ve already mentioned the issue of best
practice overload, but many clients still opt for
what they see as the ‘safe’ rather than the
‘sensible’ approach.
For sure, it is tempting to go by a document
written by someone else, but ultimately you
will be pinning your own review to the
experience of a stranger, with no knowledge of
your circumstances.
Neither will best practice or budget alone make
you stand out. In real life, the agency’s best
people, work and value have to be coaxed out –
and this you have to do for yourself.
Fix #6: Show some personality
- Reality is, by far, the strongest foundation to
a successful review – so stick to getting
relevant answers to the real challenges your
business faces.
- Agencies want to work on exciting accounts,
so be proactive in the process, offer feedback
and encouragement – but never forget that
it’s a contest (and a negotiation from start to
finish).
- Put massive effort into every single piece of
documentation and agency feedback. Start
with the RFI – bringing it back to life by
asking relevant and future-facing questions.
The RFP should then bring your specific
situation to life and create a tangible
business advantage (amongst other things).
- Be available 24/7. It’s partly your
responsibility to get the agencies to shine on
that big presentation day when it matters
most.
Fail #7: Fear of the contract
As mentioned above, negotiation is a
continuous process that may end with the
contract. Unfortunately, too many clients leave
it to the last moment to negotiate these
commercial terms. This allows agencies to use
that magical signing window to cement their
advantage. Don’t let them.
And don’t let your side of the negotiation be led
by juniors (or seniors), unfamiliar with the ins
and outs of the media industry. You’re up
against specialist agency negotiators with
decades of experience in some of the most
complex types of negotiations (due to the
multitude of variables and value points in
media). The pressure to deliver the optimum
deal is always on you, not the agency.
Fix #7: Think of the pitch as a commercial
opportunity
- Go in with the ambition that “everything”
can be negotiated, simply because it can.
- Design an itemized negotiation strategy,
with clear roles and responsibilities,
timelines, key milestones, and anticipated
outputs.
- Set up complete post-pitch reporting
systems and templates that reduce the risks
for misinterpretation, covering both financial
and non-financial items.
- If possible, surround yourself with people
with proven commercial negotiation skills in
the media space – creative and other agency
disciplines simply wont cut it here!
- And lastly, but perhaps most importantly:
forget the idea of legacy pricing – it doesn’t
exist when you’re pitching.
So there you have it – 7 scenarios to prepare
and positively influence your media agency
review outcome. Remember, best practice may
seem to reduce the risk of being a Sinner, but it
will never knock your pitch out of the park or
elevate you to a Saint. Don’t say I didn’t warn
you!
About GLUE2020
GLUE2020 is a leading-edge consultancy that
enables corporations and brand owners create,
quantify and capture value from marketing
and media investments. Entrepreneurial, we
defy the old consulting guard by offering
innovative services that design enterprises and
agency relationships of the future. We help
Fortune-500 companies exploit the ever-
changing consumer landscape, the latest
technological developments, and pioneering
agency remuneration models.