What you need to know:

• Pitching has slowed, however, some marketers have paused the process
• Initiative's global boss Mat Baxter says his team has started and completed two global pitches since lockdown
• Other agencies claim to have been pitching across multiple accounts for weeks on end
• Trinity P3 CEO Darren Woolley says brands looking to pitch now fall into three key camps
• Agency leaders are split on whether the changes to the pitch process are positive or detrimental to their winning formulas
• What next? Execs agree change is inevitable but say it's likely to be on a global stage, not when pitching locally

A “relaxed” pitch team on Zoom in the final stages of the process and nearing appointment, are met by an uncommon sight, lockdown or not – the entire company’s board.

The Royals Managing Partner Dan Beaumont details an extensive and rigorous pitch that ultimately culminated with his team presenting a final time to an undisclosed client’s entire board.

However, gone were the neckties and blazers, instead replaced with t-shirts, jumpers and what he describes as a far more “amicable and open” environment. This is one example of how COVID-19 has impacted the long-standing pitch process.

Many had pegged 2020 as being a big year for pitching, clients such as Samsung and Johnson & Johnson shook up their agency rosters while Toyota and Tourism Australia were put up for grabs.

Even though brands such as Coles, Goodman Fielder and a smattering of smaller brands have assigned new agencies, the loud sounds of the pitching carousel have softened in the wake of COVID-19. Or does it depend on who you ask?

Many agree that even though there are still pitches in play, the majority had already begun, leaving agencies to quickly adjust their presenting methods, utilising platforms such as Zoom and Webex to present and share their ideas.

For some, this has wreaked havoc with the concept of “pitching chemistry”, as other agencies have found marketers and brands have accepted the changes and even had a more relaxed approach to the entire process.

Trinity P3 CEO and Founder Darren Woolley says the pitch consultancy side of his business hasn’t seen dramatic changes since the beginning of the lockdown.

He says roughly half of the active pitches that Trinity P3 were running prior to the changes went ahead, while the remained have been paused with plans of recommencing once restrictions are lifted and consumer behaviour normalizes.

“Now what we are seeing is three groups of marketers interested in pitching. First is a group who have felt their agency hadn’t responded as effectively as they could have, plenty of goodwill and support but no real strategic effort or change,” Woolley says. “There are those who have been closed, in hibernation or just slowed down and have time to really consider whether they need to reassess what they need from their agency going forward."

“Finally, there are those who’s budgets will have been hit hard but are still expected to generate the same as they previously were – these are the one who will look to pitch and get an agency who can do what they need, just for cheaper."

MediaCom AUNZ Chief Growth Officer Matthew Vogts says there are currently a number of pitches underway and has found that there are two distinct ways these are coming about.

The first is that clients are continuing with a planned/existing intent to review their partnerships. He says this recognises that whilst we are in unusual times, and current ways-of-working may have changed, there is still a drive coming from within marketing and procurement teams to review partner performance.

The second is more organic and immediate.

Vogt says in response to the current situation and the extraordinary impact it is having on business models, there is a “very real need to reinvent the role of marketing” and how it is contributing to the overall enterprise value of a business.

“Marketers are facing immediate pressures in how best to navigate this both in adjusting for recessionary consumer actions but also the more lasting change it will have on consumer behaviour,” Vogts says. “Specifically, from customer experience to payment models and communication and are looking for support here.

“This creates a unique litmus test of marketing and agency structure and their shared capabilities. They’re either both setup to lean into this challenge or not. In the case of the latter, clients are actively looking for help.”

A global perspective

Initiative global CEO Mat Baxter says there’s no doubt that COVID-19 has had an impact on new business activity.

On a global basis, Initiative seen a number of major pitches delayed or cancelled altogether. For those that have continued, clients have chosen to hold meetings via video conference as opposed to in-person.

He says those sorts of decisions pose a new, and somewhat unprecedented challenge to agencies.

“I’ve been in the industry for more than 20 years and have no prior experience delivering credentials or chemistry meetings via Zoom! Nonetheless, I think agencies, are adapting well,” Baxter tells Mi3.

For example, Initiative have now completed 2 major global pitches - from beginning to end - using nothing other than video conferencing.

Baxter says it was a very strange experience, but it worked, adding that he has no doubt there will be lasting effects on the industry.

“For me, the most obvious impact will be that the early stages of pitches, which previously demanded an in-person attendance of agencies, will be managed remotely,” Baxter says.

“This will save time and money for all of the parties involved. I have a strong feeling that agencies will now only fly their teams half-way round the world for the final stages of a pitch as opposed to initial and “unvetted” stages. That’s good news for everyone involved.”

How does the pitch play out?

According to HYLAND Founder Virginia Hyland, the current pitches are using most of the same steps and procedures as normal.

However, some are breaking the meetings into smaller chunks so that it is spreading out over more weeks. This is because many companies have cut days on both the marketer and agency side.

She says this is slowing down the process but as a result, the focus on the quality of the thinking and ideas is probably greater because of the nature of pitching over Zoom.

Woolley says that he has designed recent pitches with fewer meetings in mind and curates specific sessions that cover off the “key components” of the brief.

He says this is providing clients with a more succinct and direct pitching process that is also seeing only the “core members of the team” involved with the overall presentation of the strategy.

“People will say that there needs to be chemistry or an all-in presentation, but most pitches are primarily led by three or four main members, while the rest appear to prove they have the adequate resourcing,” Woolley says.

James Hier, Wavemaker Chief Growth officer says every pitch is different, bar the commonality of no face to face meetings.

He says the steps are familiar, there are briefs, written documents and presented reverts.

“The obvious change is delivering them to people with whom you have built a very different type of chemistry with – I don’t say a lower level because I've been positively surprised by how much bonhomie this environment has created,” Hier says.

“The human side is very interesting and I have honestly thoroughly enjoyed presenting in this way. Counterintuitively, the performance has a very intimate feeling because you are delivering it (generally) on your own and audio is the ‘lead’ sense. It has the feel of a podcast with nuance, tone and pacing incredibly important.”

Not without its challenges

Beyond the obvious technology hurdles that different platforms like Zoom and Webex can propose, there are more challenges in running a virtual pitch.

DDB Sydney Managing Director Priya Patel says it’s harder to create a connection over video conference than it is face-to-face and even harder to read the room.

She believes much of pitching comes down to the chemistry an agency has with the client team - as well as the chemistry between the agency team itself.

"There has to be humour and light-heartedness and we all have to have the ability to laugh it off when there is an inevitable tech failure, or a toddler pops up on screen,” Patel says.

“However, agencies have spent decades perfecting how to immerse clients into a story and make them feel connected to an idea through pitch theatre, which now takes a backseat.

She says virtual pitching is a return to basics – there’s very little flashiness, so the quality of the creative ideas and supporting strategic thinking needs to “shine and speak” for itself.

Agencies and clients also need to be flexible with each other throughout the process. Patel says both parties rewriting the rules of pitching together and learning along the way.

“While always important, there’s a bigger need for a transparent and honest communication line between agency and client,” she says. “We’ve found clients that weren’t willing to be flexible on deliverables perhaps weren’t the type of clients we would want to work with long-term.”

Not all believe it to be that bad. Beaumont says The Royals’ Sydney team has been pitching consistently for the past 6-8 weeks and is finding the overall experience “relaxing”.

He says the experience has proved to be “the great leveller” in pitching, putting everyone in the exact same positioning and creating a far more open and engaged process.

“Despite what people will say about meeting face-to-face, I think this is giving people a better and more real sense of who they will be working with. There’s a level of understanding and appreciation for the situation and effort that agencies are making,” Beaumont says.

“In the pitches we’ve been part of, there has been a heightened level of open and amicable conversation and our team has certainly seen marketers ask more questions with deeper interest.”

Hyland says the entire experience hasn’t been without its lessons either. She says her team have learnt very quickly through virtual presentations “the art of not talking over the top of each other”.

“This is a good thing. In a pitch room you have people who want to race ahead and may not allow others to finish their point. It’s a good lesson in patience,” Hyland says.

“The other challenge is ensure that the story being told is clear and succinct. Any waffle or over talking means that the point to the presentation is more easily lost. Especially when we cannot leave visuals on walls as a reminder to the journey around the thinking.”

What next – an avalanche of pitches or sustained change?

One of the lingering questions remains, “what does this mean for the future of pitching?”

Opinion differs agency to agency, however, there is a universal belief the impact of COVID-19 will be accompanied by some short-term effects for local pitches, while the longer-lasting changes will be on the global stage.

Vizeum CEO Ashley Earnshaw says it is likely that there will be a renewed focus on pitches towards the second half of the year, which will bring new opportunities and an ability for agencies to “deploy new thinking”.

He says the current environment has clearly proven that anything can be possible, so long as you have a good internet connection and a working computer.

“Certainly for global pitches, the use of technology may bridge multi-market requirements and bring an efficiency to larger projects,” Earnshaw says.

“However, for local pitches, I don’t anticipate virtual pitching to become the norm. A pitch is as much a rational process as it is emotional, with the need to meet face-to-face being important to build trust, communicate fully and collaborate effectively.”

PHD Australia CEO Mark Jarrett says there is also a strong likelihood that marketers will elect not to pitch and remain with their existing agencies due to recent events.

He says in some instances the relationship between agency and client has been strengthened throughout the experience.

“We’ve put together strategic plans for our clients since this began and now we are looking toward how we handle things in partnership on the other side, so have plenty of other agencies,” Jarrett says.

“Combined with the fact that we could be looking at a 40% reduction in ad spend, this could possibly push the thought of pitching further down the priority list and see a reduced amount of activity in H2.”

When it comes to global pitches, Jarrett agrees with Earnshaw, adding that this could also see local marketing teams be given more freedom around which agencies they end up with.

“Global brands might start to swing move heavily to the ‘panel’ approach when appointing global agency partners and with international travel restrictions to remain in place for some time, local markets will then be able to select their preferred agency partner.”

There is also the “rebuild factor” to consider according to Beaumont. He says despite the hope of a bounce back once restrictions are lifted, brands will remain conservative.

“There’s an obvious factor here – pitches are a big distraction. I don’t think many brands will find themselves in the fortunate position of being able to run one while also recovering from this economic downturn,” he says.

The final alternative sees brands opting to forgo a formal pitch process altogether, which has already been seen in the current climate and instead appoint agencies off the back of referrals.

Patel says with the advertising industry as well as the entire economy hurting, this seems like the “most reasonable way”.

“Pitching has its benefits and there’s nothing like the thrill of presenting a new idea the client loves, but it comes at the cost of the agency to participate and adds extra workload onto staff,” she says. “I’ve always believed that clients can tell a lot about an agency from their recent work, the tenure and quality of the clients.”

“Crucially, spending time with the human beings in the team – even if it’s over Zoom – and liking them, still seems like a better formula for long-term success than the slightly artificial set of presentations that form a pitch process.”