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The fine line between value and cost

Zenith’s Rita Kteiche calls for industry leaders to ensure that pitch processes are designed in a way that gives equal weight to value, capability and long-term impact – just as they do cost.

Zenith’s Rita Kteiche suggests that the pitch processes be designed to gives equal weight to value, capability and long-term impact.
Zenith’s Rita Kteiche calls for industry leaders to ensure that pitch processes are designed in a way that gives equal weight to value, capability and long-term impact – just as they do cost.

There is a delicate balance in agency pitches between encouraging creative, strategic thinking and ensuring commercial discipline. As the industry evolves, maintaining that balance has become increasingly important.

Competitive pitching is designed to create value. By inviting multiple agencies to respond to the same challenge, brands can compare different perspectives, evaluate capabilities and select the partner best suited to their needs. At its best, this process encourages strong thinking and healthy competition. In practice, however, it can sometimes place competing priorities under pressure.

As more agencies are invited into a process, the focus can gradually shift. What begins as a search for the most effective partner may become more heavily influenced by pricing structures, efficiencies and commercial terms. When this happens, creativity and strategic thinking, often the qualities that make the greatest difference, can receive less attention than intended.

This can create a difficult dynamic for both brands and agencies. In larger pitch processes, evaluation criteria may become more formal and commercially led, placing increased emphasis on cost alongside capability. Agencies naturally respond to these signals and may shape their responses around what they believe the client is looking for. The result can be polished presentations that meet expectations, but do not always reflect the full depth of an agency’s potential in practice.

This is where the process can lose some of its effectiveness.

When cost becomes the strongest point of comparison, it can encourage behaviours that are hard to sustain. Agencies may commit significant senior time, develop highly detailed strategies and produce work close to final-stage delivery in order to remain competitive. While this can demonstrate commitment and capability, it can also create pressure on a model that is difficult to maintain over the long term.

At the same time, lower cost does not automatically translate into better business outcomes.

Marketing effectiveness is usually built over time through shared understanding, aligned ambition and consistent delivery. When decisions are driven too heavily by short-term savings, there is a risk that longer-term value may be reduced. A more competitive cost may be secured, but potentially at the expense of strategic continuity, depth of partnership and future performance.

This is not about reducing the role of commercial scrutiny in the process. Clear evaluation, transparency and accountability remain essential. They help ensure investments are properly assessed and that value is well understood. The opportunity is to ensure that commercial considerations are assessed in the right context, alongside the strategic and technical factors that are critical to success.

For this reason, it is helpful for brands and agencies to align early on what success really looks like. That may mean market share growth, revenue impact, brand equity, customer acquisition or a combination of measures. When these goals are clearly defined from the outset, cost can be evaluated in the right context rather than becoming an unintended proxy for performance.

The most effective pitch processes assess agencies against the capabilities most likely to drive results: strategic thinking, creativity, data, audience understanding and the ability to translate insight into action. Cost should absolutely be part of the conversation, but it works best when considered alongside these factors, not in isolation.

One of the clearest opportunities for improvement lies in connecting strategic and technical evaluation more closely with commercial assessment. Too often, strong proposals are considered in one conversation and pricing in another, which can create a disconnect between what is being proposed and what is expected to be delivered. This can lead to misaligned expectations on both sides.

A more effective approach may be a phased or wave-based process. In the first stage, brands and agencies can focus on strategic and technical alignment: objectives, ways of working, success metrics, tools and capabilities. Once there is clarity on the shape of the solution and the outcomes required, the second stage can focus on building a cost structure that appropriately supports that approach. This creates a more coherent and transparent process, where cost is still important, but clearly linked to the value being delivered.

The goal is not to reduce the importance of commercial discipline or cost considerations, but to ensure that pitch processes are designed in a way that gives equal weight to value, capability and long-term impact, just as they do to cost. When creativity, data and strategic expertise are viewed as investments in growth rather than simply costs to manage, brands are better placed to build partnerships that deliver lasting business value.

Ultimately, that is what the pitching process should be designed to achieve.

By Rita Kteiche, Business Director, Zenith.