Agencies specialized in communication consulting, advertising, public relations, media buying, digital communications, and other activities spend on average €650,937 annually on participating in pitch processes, while the average cost per pitch amounts to €43,804. Even more alarming is the fact that only four out of ten winning ideas are ever implemented.
These results come from the Cost of Pitching 2025 study, published this month by the European Association of Communications Agencies (EACA). The findings of what is considered one of the most important surveys conducted by the organization recently are being described as concerning and call for an urgent re-evaluation of pitching practices in the communications industry.
According to the latest EACA data, the pitching process for new clients is becoming unsustainable. Based on responses from 412 agencies, which represents 16 percent of the membership, the cost of the pitching process would only be justified if agencies secured business worth at least seven million euros.
‘And that’s just to cover the costs, assuming a minimum EBITDA margin of 10 percent. Clearly, this is unsustainable,’ said Charley Stoney, CEO of EACA and President of VoxComm.
Massive Financial and Human Costs
The study found that, beyond the astronomical cost of each new pitch, an additional €28,355 must be allocated for reviewing existing partnerships. It also revealed that media agencies bear the highest per-person costs – often exceeding €65,000 per pitch due to the need for data, digital solutions, and multichannel strategies.
In addition to internal resources, agencies spend an average of €9,000 per pitch on external collaborators, production, travel expenses, and materials. Despite this, not even half of the ideas make it to implementation, as only 4 out of 10 winning creative ideas are actually carried out by clients.
The Real Cost: People
Besides finances, the study highlighted serious staffing burdens – agencies typically assign teams of five to eight people, with each team member contributing over 44 working hours per pitch. EACA’s 2024 Agency Sentiment Survey showed that mental health is the second most pressing issue facing agencies today.
‘We estimate this to be a billion-euro problem in the industry – with no guaranteed return’, Stoney emphasized.
She added that no other industry gives away brilliant ideas for free, and that fairer and more transparent processes are urgently needed, not just for financial sustainability but also to protect the mental health and motivation of people.
Nearly 50 percent of respondents said they feel overwhelmed at work, citing pitch fatigue and unrealistic deadlines as the most common reasons for low morale and high staff turnover.
A Call for Accountability and Practice Change
To address these issues, EACA recommends that the agency selection process start with credentials and case studies, before any speculative creative engagement takes place.
‘This is a wake-up call for the whole industry. Agencies are responsible for deciding whether to pitch or not. It’s time to stop normalizing inefficient processes and start demanding better. Ethics and effectiveness in partner selection must become the industry standard’, Stoney emphasized.
No Better Situation in the Region
At the same time, the Croatian Association of Communication Agencies (HURA), which gathers 62 agencies, published its own research showing that more than 70 percent of Croatian agencies participating in the study take part in up to 10 tenders per year, with the majority believing that tenders are often not aligned with HURA’s published guidelines.
In many cases, as noted in HURA’s statement, agencies do not receive clear information in advance on key cooperation parameters such as budgets, payment deadlines, and other working conditions.
‘Also, only 13 percent of respondents received compensation for more than half of the tenders they participated in, even though preparing tender materials represents a significant expense – often between €1,000 and €5,000, and sometimes even more’, the statement said.
Furthermore, it is concerning that a third of the agencies surveyed reported that their creative solutions were used without prior agreement after the tender process. The most common reasons agencies choose not to participate in tenders include unclear briefs, unrealistic deadlines and task scopes, poorly defined financial frameworks, and client reputation in managing the process.
The conclusion is that this tender model, in its current form, presents numerous challenges for both agencies and clients – who risk losing opportunities for quality and sustainable collaboration.
‘A more transparent and accountable approach to tenders, with consistent application of existing guidelines and more clearly defined rules, could benefit both sides – ensuring fairer conditions for agencies, better creative proposals for clients, and contribute to strengthening the entire industry in the long run’, the statement said.
The goal of highlighting these issues is to promote the sustainable development of the market and to preserve the professional integrity of the industry.
