Even the pluckiest agencies typically win just a fraction of their pitches. The unpredictable nature of the new-business cycle is, well, its most predictable part. Yet, while most execs would say it’s nice to bag clients in quick succession, agencies often prefer to mitigate the uncertainty by spreading their wins over the course of an entire year.
What happens when the accounts come in disproportionately, within a compressed time period? Just ask the principles at AbelsonTaylor, who dealt with that anomaly last year.
“We won half our pitches. We just lost all the pitches in the first half and won all the pitches in the second half,” explains president and CEO Dale Taylor. “So the revenue from those wins — we won nine brands in the last nine months — is all going to fall into this year, as opposed to last year.”
The lopsided performance, combined with the loss of a couple of large brands and a slowdown in spending from an unnamed client, spawned a “perfect storm,” Taylor says. As a result, revenue declined precipitously, from $71.6 million in 2017 to $54.9 million in 2018. Client losses included Amag’s Makena, AstraZeneca’s Tagrisso and Iressa (which EVP and director of business development Jay Carter chalks up to a “procurement decision, not a marketing team decision”), Bluebird Bio’s Lenti-D and Lenti-G, Greenwich Bioscience’s Epidiolex and Mallinckrodt’s H.P. Acthar Gel.
To match the 30% dip in revenue, AbelsonTaylor scaled back staff count by about 22%, from 366 to 287. For the most part, staffers attached to the erstwhile accounts were shifted to other ones, according to Carter. “Obviously, new business wins help retain the people,” he explains. “We’re doing pretty well because there’s been so much new business added on.”
Inasmuch as the aforementioned storm adversely affected 2018, Taylor and Carter say the agency is scaling up to prepare for a big second half. By early May, the agency had already hired 30 people. Additions included SVP, director of engagement and account planning Christopher Dimmock, who joined in April from Creata.
They’ll be pressed into service on five launches, in categories ranging from primary care to rare disease, many of which Taylor says “have really high promotional value this year and next.” One of them, for the Abacus Health Products line of CBD-containing, OTC pain meds that hit pharmacy shelves this year, already happened.
“Our partnership with AbelsonTaylor in the launch of our CBDMEDIC line of products has been very valuable,” reads an emailed statement from Rhonda Attar, chief marketing officer for Israel-based Abacus Health. “This is a brave, new and challenging industry, and we’re navigating uncharted waters together.”
Other recent client additions included G1 Therapeutics’ trilaciclib, a new myleopreservation agent; Iterum Therapeutics’ oral antibiotic sulopenem; and Mead Johnson’s Allerni, for cow’s milk protein allergy.
The Windy City-based AbelsonTaylor is also preparing for its first move in some time — into Chicago’s old main post office building, which Taylor describes as “an exciting development that has people here pretty well fired up.” The agency signed a lease for the entire sixth floor in one of three interconnected structures that comprise the massive riverfront complex, the redevelopment of which has drawn corporate tenants such as Walgreens.
In the same breath, Taylor mentions the need to ensure the firm remains attractive to young people. “That’s a challenge everyone is facing,” he adds.
From the July 01, 2019 Issue of MM+M - Medical Marketing and Media
