Adweek – Pitch consultancies like R3 have seen new business decreasing as a recession looms. According to R3’s analysis, the average U.S. pitch value declined 48.6% between January and August, compared to the same period last year, reflecting the slowdown. But that doesn’t mean agencies are in the clear. Some still don’t have enough employees, and a tumultuous economy makes it hard for agency leaders to know if they should keep hiring.
Agencies were declining to participate in pitches because they had more work than employees. Answering more RFPs would mean overstretching an already burnt out, dwindling workforce. “The big six [holding companies] laid off 24,000 during 2020 and then … hired 32,000 back in, so there’s just a lot of turmoil in the agency process and model,” said Greg Paull, co-founder of R3.