Exclusive - South African Creative Agencies Compete For New Business In 47 Pitches A Year

Source: © 123rf 123rf Scopen unveils key trends from its first creative agencies’ New Business Report in South Africa, which shows that South African creative agencies participated in an average of 47 pitches last year

With rising new business costs a growing concern for agencies worldwide, Scopen conducted a focused study in Brazil, Chile and Spain, analysing industry trends and advertiser practices.

Earlier this year, following its success, the research was extended to South Africa, providing fresh insights into the local market.

César Vacchiano, president and CEO of Scopen, states, "We kept the questionnaire simple for our first New Business Report in South Africa to encourage agency participation.

"When we run it again in 2026, we plan to include more in-depth questions for deeper insights."

The report, based on responses from 25 creative agencies, was finalised in February 2025.

It offers a clear snapshot of the challenges, opportunities and evolving dynamics between advertisers and agencies, equipping industry leaders with vital data to assist them in navigating an increasingly competitive landscape.

Key findings

New business structures

• 36% of South African creative agencies have a specific New Business (NB) department (Spain: 43%). Among Top-5 agencies, this rises to 60%.
• NB Teams typically consist of six members, with two full-time staff (Spain averages 3.3 full-time.)

Pitch activity and success rates

• South African creative agencies participated in an average of 47 pitches last year. (Top-5: 50 pitches.)
• By comparison, Brazil averages 16.2 pitches and Spain 27.
• The average conversion rate was 17%, with more than half of agencies reporting a success rate below 10%.

Transparency in pitching

• In South Africa, advertisers disclose the number of competing companies in 55.3% of pitches. (Spain: 88%, Chile: 30%.)
• The average number of invited agencies per pitch was 5.1 (Chili: 5.5, Spain: 4.5, UK: 4 - Source: AAR).
• Agencies believe the ideal number should be capped at three.

Pitch timelines

From the initial brief to the final decision.

• Average pitch duration: 2.7 months. (Spain: 3.3 months, UK: 2 months - Source: AAR.)
• Advertisers typically give creative agencies 2.8 weeks to submit final proposals after receiving the brief.

Remuneration of pitch processes

• 24% of pitches in South Africa were remunerated last year.
• Average pitch fee compensation is around R 50,000.
• Agencies believe R108,400 is the minimum fair remuneration for pitch participation.

Investment in new business

• South African creative agencies invest an average of R1.6m annually in new business.
• Among Top-5 agencies, this rises to R3,87m.

Johanna McDowell, CEO of the Independent Agency Search & Selection Company (IAS) and Scopen partner, comments, “I was surprised by the high number of pitches agencies are involved in—it doesn’t seem sustainable in the long run.

“Would the 17% conversion rate improve if agencies were more selective?” she questions.

“It might be a smarter strategy to focus on the right opportunities rather than pitching for everything. Just because an agency is invited doesn’t mean they have to say yes."