Procurement. Pitching. Pricing: The 3 Ps keeping the industry up at night

Product, price, place and promotion: the industry wakes up to the four Ps of marketing every morning. Yet, the three Ps keeping industry leaders up at night are: Procurement, pitching and pricing.

Campaign Middle East opens Pandora’s Box on these themes and, unsurprisingly, the woes of the marketing world pour out.

Senior leaders speak plainly: It’s cost-cutting versus value generation in procurement

From this seemingly small box of misery emerges conversations around: deficient or overweighted briefs; lack of transparency; dearth of feedback; shifting goalposts; unclear evaluation criteria; price-based decisions; confidentiality concerns; intellectual property infringements … all of which affect existing partnerships.

Anup Kondakundi, Global Head – Marketing Strategy and Brand Transformation, Ajmal Perfumes, says, “Lack of transparency, unclear parameters and shifting goalposts are pressing concerns within the Middle East’s marketing landscape. These issues can lead to mistrust, inefficiencies and potentially losing valuable partnerships.”

Muriel Lechaczynski, Chief Growth Officer, TBWA\RAAD, adds, “Too often, pitches are rushed, briefs are overloaded, timelines are unrealistic, and true partnerships get lost in the process. Brand owners must reclaim the pitch, creating space for conversation, collaboration, freedom and chemistry – the ingredients behind great, disruptive work. Creativity isn’t a line item – it’s a growth engine. World-class ambition demands world class partnership – procurement included.”

‘‘PROCUREMENT SHOULD BE ABOUT MAXIMISING VALUE, NOT JUST MINIMISING COSTS.”

That said, as procurement takes on a greater role in identifying agency partners – especially in the GCC region – the industry has a real opportunity to become a force for growth. However, leaders state that this will require an imminent move away from mere cost-cutting (or cost-savings), and a move toward sustainable, strategic value generation.

Ghada El-Kari, Chief Strategy Officer at W Group Holding, who oversees a portfolio including Hypermedia and DXTA, adds, “Procurement should be about maximising value, not just minimising costs. Media procurement in the region often feels like navigating a moving target. One day, the priority is cost-cutting; the next, it’s innovation – yet the criteria for decision-making remain unclear.”

Echoing these thoughts, Shahbaz Tiavar, Global Deputy Head of Procurement for Luxury and Lifestyles Brands, Accor, says, “In most cases today, the current procurement approach emphasises cost-cutting rather than prioritising long-term strategic value. This aggressive focus on price negotiations may provide immediate savings but can undermine creativity, quality and sustained strategic relationships.”

Tiavar adds, “When cost becomes the primary driver, it limits the potential for innovation and adaptability, crucial in today’s fast-paced and competitive market. The status quo may appear sustainable in the short term, yet it risks stifling growth and innovation if not balanced with strategic long-term value consideration.”

However, other leaders state that procurement doesn’t always prioritise cost-cutting over long-term strategic value – or rather, there’s no case for why it should.

Ali Rez, Chief Creative Officer, Impact BBDO, shares a story: “There’s a brilliant account management person I used to work with – Paul Hastings. Paul once took two photographer portfolios to a client and their procurement team. One was much pricier than the other but, of course, was much more incredible. Paul laid out both portfolios before their procurement teams and said: ‘When people see the brand ad from Photographer A, they will say: This brand has done such an amazing ad, and when they see the ad from Photographer B, they will say: This brand has done an OK ad, but at least they saved some money.’ Value is the key word here – and brilliant procurement seeks value. Hence, logic would dictate that the quality of the work should be prioritised 10 times out of 10.”

Where does the onus lie: On marketers, procurement or agencies?

What needs to change? A little bit of everything – and everyone – by the looks of it. Some leaders call for procurement teams to gain more expertise and a better understanding of brand and marketing. Other leaders place the onus back on agencies who are undervaluing themselves, rather than standing up for the strategic value they bring to the table.

Khaled AlShehhi, Executive Director of the Marketing and Communications Sector at the UAE Government Media Office, shares a well-balanced take, saying, “Much of the perceived ‘lack of transparency’ arises from limited procurement expertise in the industry and clients who aren’t fully clear on budgets or scopes. Often, requirements shift or projects are postponed, creating the impression of ‘pitch theatre’ and free idea gathering, even if unintentional. Understandably, this leads agencies to losing trust, investing heavily without return, or sometimes bowing out of pitching.”

Ideally, a well-structured procurement process should integrate both financial and technical criteria, with client-side marketers working in tandem with their procurement teams to balance cost and strategic value.

AlShehhi adds, “When marketing’s voice is sidelined or overshadowed by pure price considerations, agencies are forced to compete on cost instead of creativity. Short-sighted budgeting ultimately erodes brand equity and stifles innovation. At the same time, agencies should recognise that big results don’t always require big spending. This shifts the conversation from ‘we need more budgets’ to ‘we need the right idea’.”

‘‘AGENCIES HAVE INCREMENTALLY RELINQUISHED THEIR OWN AUTHORITY, DILUTING THEIR PRODUCT AND ABANDONING DIFFERENTIATION.”

Calling on agencies to be better versions of themselves, Akhilesh Bagri, Chief Creative Officer, Serviceplan Group Middle East, says, “This is not a failure of procurement, it’s a reflection of an ecosystem in which agencies have ceased to value their own time and output. Agencies have incrementally relinquished their own authority, diluting their product and abandoning differentiation in pursuit of being all things to everyone. In such an environment, ambiguity thrives. If everyone promises everything, then clarity becomes unnecessary, even inconvenient.”

When viewed through this lens, an alternative viewpoint arises. Procurement’s orientation toward cost efficiencies is neither surprising nor new. It is, quite literally, their mandate: to get the most value at the most affordable prices.

Bagri explains, “What’s unsustainable is the agency’s willingness to reduce creative and strategic value to a price-per-unit calculation. The issue isn’t procurement being too aggressive; it’s that agencies that lack conviction in the distinctiveness of their offering have made themselves interchangeable. And once that happens, price inevitably becomes the only negotiating variable. This model isn’t just unsustainable; it’s already in decline. And not because someone designed a better system, but because the current one is collapsing under its own contradictions.”

One of the leaders also threw in a curveball – suggesting that the industry turn procurement on its head – to move from cost-based to value-based procurement.

Accor’s Tiavar explains, “Value-based procurement would focus on the total cost of ownership (TCO) rather than  just initial costs. This strategy emphasises building strong, long-term relationships with suppliers who contribute to the overall success of the organisation. For instance, this calls for brands to partner with suppliers who offer innovative solutions that align with long-term business goals, which can result in sustainable growth and a competitive advantage.”

The way forward: Procurement resolutions and remuneration for pitching

A pivot to solutions within this conversation results in a consensus of cautious optimism: the Middle East brand and marketing industry can do better, simply because it must. Leaders agree that the way the industry currently operates is unsustainable, likening it to a bubble bound to burst.

This consensus results in a clarion call for transparency, standardised brief structures, crystal clear evaluation criteria and honest feedback.

Alok Gadkar, CEO and CCO, Tuesday Communications, says, “The post-pitch processes need to be addressed. While we do get a well-structured document from a few companies that follow guidelines of standard operating procedures, the reality is that soon after the submission there is a huge gap. What’s completely missing is feedback and substance in terms of why an agency didn’t make the cut. If the request for proposal (RFP) didn’t convert, the agency deserves to know why the competitor won it. The truth is: an RFP that was on ‘turbo’ speed operates at a snail’s pace after the submission.”

Accor’s Tiavar adds, “Transparency in procurement processes is crucial to foster trust and efficiency within the Middle East brand and marketing landscape. Addressing any concerns related to unclear parameters and shifting goalposts can significantly enhance collaboration and outcomes.”

“THE IMMEDIATE PRIORITY IS STANDARDISING BRIEFS WITH CLEAR OBJECTIVES, TIMELINES, BUDGETS AND EVALUATION METRICS. IF A BRIEF IS UNCLEAR OR LACKS MAJOR DETAILS – SUCH AS BUDGET – AGENCIES SHOULD HAVE THE COURAGE TO WALK AWAY.”

Government clients, brand-side marketers and creative leaders also agree that there ought to be better compensation for time and effort spent on proposals and pitches – with some going as far as to say that ‘better’ holds good assuming there’s any compensation at all.

Impact BBDO’s Rez says, “I’m surprised that there is no advertising regulatory body mandate that time spent on a pitch must be compensated. It’s time for a change. I also find it to be such a waste of resources when an agency is selected for the pitch work, but the pitch work never actually runs. This has always baffled me. A lot in this industry needs to reform for it to function better – for both agencies and clients. This doesn’t necessarily mean standardised briefs but, yes, clearer evaluation criteria would be an excellent start.”

Ajmal Perfumes’ Kondakundi adds, “Developing innovative ideas and comprehensive strategies require significant investment in time, talent and resources. Fair compensation acknowledges this effort and encourages agencies to contribute their best work. This approach not only enhances the quality of campaigns but also builds stronger, more respectful client-agency relationships.”

The UAE Government Media Office’s Khaled AlShehhi points to global best practices and the growing adoption of paid-pitch frameworks or partial ‘pitch fees’, agreeing that creative work shouldn’t be given away for free.

However, AlShehhi also adds, “From my perspective, the immediate priority is standardising briefs with clear objectives, timelines, budgets and evaluation metrics. If a brief is unclear or lacks major details – such as budget – agencies should have the courage to walk away, thereby educating clients and elevating standards.”

Serviceplan Group Middle East’s Bagri agrees, arguing that while it is reasonable to expect fair compensation and standardised evaluation, this misses a more fundamental point.

Bagri says, “Agencies have normalised the act of giving away their most valuable intellectual property without safeguards or remuneration. Over time, this has created an expectation: that creativity is free, and available on demand. This is not the fault of clients or procurement. The industry built this precedent and enforced it through silence. Until agencies assert the value of their time, their ideas, and their people, no amount of structural reform will restore balance.”

But AlShehhi chooses to close discussions on a positive note. 

He says, “In some projects, we compensated agencies for their proposals when they demonstrated a clear investment of time, creativity and strategic thinking – and even purchased the rights to selected creative concepts for future use out of respect for their contributions.”

AlShehhi concludes, “While the industry may not be fully ready for universal pitch compensation yet, I believe this step-by-step shift is on the horizon, ultimately benefiting clients and agencies alike.”