Amid a tough economic environment agency clients are cutting budgets and increasingly prioritising commercial impact over creativity and chemistry when selecting winning pitches. 

That’s the finding of jfdi and Opinium‘s ninth New Business Barometer, a comprehensive survey of agency business development professionals, across disciplines including creative, digital, experiential, content and social. 

The report, of which Bristol Creative Industries is a partner, said overall client budgets are down around 30% on 2024, with large agencies reporting a 30% drop, medium 26% and small 29%.

As the hunt for new business intensifies, marketing investment by many agencies has increased. Large agencies report an increase of 58% on 2024 to £257,000, while medium agencies have invested +36% at £140,000. Small agency investment however is down by 19%.

When it comes to why clients select which pitch to go with, the report found that commercial impact is rising in importance when compared to creativity and matching chemistry. Meeting commercial objectives was cited as the key factor by 61% of respondents, up 7% on last year’s report.

Another top pitch winner was relevant expertise at 77%, up 5%, while good client chemistry was down 2% at 72%.

Agencies are refining strategies to play to their strengths, focusing resources where they deliver the biggest impact, the report said.

71% of large agencies use intermediaries a top prospecting strategy, medium agencies focus primarily on management networks (80%) and marketing sales engagement (67%), and small agencies use personal networks (76%), client referrals (57%), and marketing as sales engagement (55%).

Camilla Honey, CEO of jfdi, said:

“This year’s Barometer marks a turning point. Creativity and chemistry still matter but are no longer enough. Agencies are assessed far more rigorously on relevance and commercial impact. New business is less about volume and visibility, and more about strategic precision: choosing the right opportunities, building credible proof, and protecting profit.”

Stephanie Brimacombe, CEO of VCCP Roar, added:

“In a shifting and competitive industry landscape, clients are demanding transformative ways to create tangible value for their brands.”

New business challenges shaping agencies in 2026

The report said economic uncertainty and client behaviour are set to shape agency new business activity this year.

Concerns jumped 12% to 39%, the second-highest reason for losing a pitch. Client behaviour remains a top challenge with budget withdrawals topping the list, followed by rarely receiving detailed feedback at 30%.

Across the board, agencies said keeping projects profitable is their biggest challenge: 58% of small, 59% of medium, and 64% of large agencies reported it’s more difficult than last year. Across all sizes, this challenge now outranks creating opportunities, investing in new business, or converting pitches.

Filling the pipeline is becoming harder: 63% of small agencies, 43% of medium, and 39% of large said creating opportunities is more difficult than last year.

On AI use in pitches, “the race has just begun”, the report said. It found that AI is “firmly on the new business agenda, but it’s early days” as “agencies are experimenting, testing tools, and hunting for advantage, without a playbook”.

When it comes to which AI tools are used, 72% use ChatGPT, 34% Gemini, 22% Perplexity, and 18% CoPilot.

Use varies by size, the report said. Small agencies use AI for speed, research, and pitch prep; medium agencies focus on processes and proprietary tools and large agencies scale research, qualify opportunities, and automate pitches with their own platforms.

Despite, this the report found that one in four agencies have yet to start using AI.

Jason Foo, founder of BBD Perfect Storm & Chairman of St Lukes, said:

“Growth today isn’t about doing more of the same.  It’s about being braver, acting smarter and doing more joined-up work. As client expectations continue to rise, new business has become both a strategic discipline and a creative craft.”

Advice related to the report’s findings

Don’t lose sight of your new business pipeline

10 top tips for getting the pitch over the line

How Bristol Creative Industries members are using AI

What we’ve learned about AI in agencies: Insights from 30 creative leaders

How to prospect for new business without losing your soul

How creative businesses can write the perfect positioning statement

About Bristol Creative Industries

Bristol Creative Industries is the membership network that supports the region's creative sector to learn, grow and connect, driven by the common belief that we can achieve more collectively than alone.