Research finds 49% of agencies suffer theft of intellectual property during the pitching process.

One in two (49%) of agencies suffer theft of intellectual property during the pitching process, according to research highlighting the financial and ethical challenges faced by agencies today. 

An analysis of 475 individuals, including PR agencies and clients, showed 77% of agencies experience IP theft once or twice  annually, as clients poach agency ideas without committing to contracts.

There has also been a shift in client-agency relationships, as 43% of agencies claim procurement-led pitches have risen and 40% say that responsibility is now shared between procurement and communications teams, leading to concerns that a cost-driven focus is overshadowing creativity. 

The report, published by the Public Relations and Communications Association (PRCA) this month as part of its Pitch Forward initiative, offers guidance to improving the client-agency relationship which, it says, is often “inefficient and exploitative”. These include budget transparency, more precise objectives and streamlined procurement processes.

James Hewett, PRCA CEO, said the research “highlights challenges that have been quietly straining the agency-client relationship for too long." The report hopes to provide a roadmap towards more ethical, transparent and efficient pitching, he added.

Further challenges highlighted in the report include pitch abandonment, as 36% of respondents reported experiencing this at least 1-2 times, a lack of budget transparency and the financial and resource burden of pitching itself.