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New Prospects Few

Survey of agencies indicates 2008 wins have been harder to come by

June 16, 2008

-Andrew McMains


NEW YORK A majority of agencies say that landing new business is harder this year than three years ago, due mainly to fewer opportunities and bigger barriers to reaching prospects, according to a new survey of 150 shops by business development consultancy Reardon Smith Whittaker.

Fifty-nine percent of the respondents also said that their revenue is flat or down from a year ago in what appears to be yet another sign of recessionary times. That finding dovetails with a March Reardon Smith Whittaker survey of 202 U.S. marketing executives, in which more than three-quarters said the economy had moderately to greatly affected their companies [Adweek, April 28].

Other research also illustrates downward pressure on marketers. Seventy-seven percent of nearly 100 global marketing chiefs expected their budgets to be flat or shrink this year, in an April report from Forrester Research. Collectively, such findings underscore just how difficult it is for agencies to generate new business against a head wind of client caution and cutbacks. In response they need to sharpen their approach, said Mark Sneider, managing director at Reardon Smith Whittaker in Cincinnati.

"It has got to be more intelligent," said Sneider. "Key to engaging is making the reach outs relevant, making them meaningful to the prospect and ensuring that they add value to their world. . . . Tell them how you can help them, give them something useful to work with."

A lack of experience or focus among new-business chiefs may also cause problems. According to the survey, some new-business leaders are handling many tasks beyond their core focus of prospecting and networking, such as developing collateral, creating presentations and managing mailings. Also, 58 percent of the agencies that responded have replaced their new-business leader within the past three years.

The likelihood of an agency executive from another discipline, say account management, sliding into new business and immediately succeeding is not great. "It's not for the uninitiated, especially in this time," Sneider said.

The Reardon Smith Whittaker poll was conducted in May via an e-mail questionnaire that went to CEOs, principals or senior managers. The responding agencies ranged in size from boutiques to regional offices of global d networks. The shops included DDB, Cramer-Krasselt, Carat, MPG, Leo Burnett, The Gepetto Group, SBC Advertising, Ruder Finn and Travers Collins & Co.

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