Agency reviews come at a substantial cost for both clients and agencies. For clients, the expense averages $400,000 per pitch, with costs slightly varying depending on incumbent participation. For agencies, the financial burden is even steeper: non-incumbents spend approximately $204,461, while incumbents can expect nearly double that at $406,092. When factoring in three finalists in a typical pitch, total costs can soar to around $1-1.2 million.

These figures arise from various factors including hourly rates, staff changes, disruptions, consultancy fees, and compensation. For clients, 34% report daily task interruptions, and transitions between agencies can introduce extra costs. Agencies, particularly incumbents, involve more personnel, further driving up the hourly costs.

The efficacy of these reviews is questionable. Despite cost/price being a prime decision-making factor for 62% of clients, two-thirds still retain their incumbent agency post-review. The findings suggest the need for cost-effective alternatives, such as relationship management programmes, to nurture client-agency partnerships.