The Independent Media Agencies of Australia (IMAA) CEO Sam Buchanan has expressed his disappointment at the NSW Government for turning its back on independent media agencies by locking them out of the $78 million master media expression of interest.
Buchanan spoke to Mediaweek about what this means for the industry, the IMAA’s next step, and his message to NSW Customer Services minister Victor Dominello.
The IMAA CEO shared that he and other IMAA representatives had met with minister Dominello, his staff, and other NSW Government ministers calling for urgent change to the EOI and a review of the process for more than ten months.
However, the tender progressed to a shortlist of yet-to-be-announced multinational agencies, leaving pitches by local independent media agencies out of consideration and contention.
Dominello’s office has only provided the opportunity for independent media agencies to be part of the NSW Government’s Advertising and Digital Communications Services Scheme. The scheme lists pre-qualified advertising and digital communications service providers and is managed by the Department of Customer Service; however, it does not include media agencies on its list of 11 capabilities, only “digital communications”.
The NSW Government’s own procurement rules, which state that all government services contracts above $3 million must include “10 per cent allocated to SME participation”, have also been ignored. The Minister’s office referred the IMAA to Treasury to discuss this requirement.
Impact on the industry and local economy
Buchanan called it “lazy policy” and added: “The government keep saying that it’s about the efficiencies of just dealing with one business. It doesn’t make sense from the diversity of thought, of service – some smaller departments will lose out because they’re caught up in a big beast – of supporting their own economy.
“All Dominic Perrottet and Victor Dominello talk about on their high horse is supporting the Australian economy. And yet, when it comes to backing it up, they’re sending the money off to an offshore business,” he added.
Buchanan said the government’s actions sent the wrong message to Australian-owned businesses, not just agencies. He added: “It shows they’re not prepared to back them up.”
The IMAA CEO said master media tender was an important initiative to follow through after seeing the same situation happen to Victorian agencies. Buchanan had hoped to spare NSW agencies from the same problem.
Buchanan added: “I think they didn’t think they would be pulled up on it and thought they could push it through. We talked to them for more than ten months, and they’ve been kicking the can down the street for that long.”
“The government spoke about all the data they’ve got that showed the efficiencies, but they haven’t shared the data with us. So, we don’t believe the efficiencies are there, and it’s probably more lazy policy and just easy for them to decide on one company.”
“We want a chance to be able to put a hand up to the business”
Buchanan explained that it wasn’t about rate, buying power or a hate campaign against the holding companies.
“We want a chance to be able to put a hand up to the business. There are a lot of benefits to working with indies, such as diversity of thought, being more nimble, and supporting the Australian economy,” he said.
Buchanan revealed that he and IMAA members had two separate encounters with Dominello, who assured them that he would have his team look into the situation.
The IMAA CEO recalled: “We’ve had dinner with Dominello. He’s looked me in the eye, with genuine concern, and said, ‘really? Let me fix this up. Let me get my team onto it.'”
“It’s disappointing that his words haven’t translated into a review. We’re not saying give it all to indies. We’re saying allow us to pitch for it. Allow us to put a tender in. We were locked out from the from day dot because it was orchestrated to lockout indies and invite holding companies.”
The IMAA CEO suggested that the government and Dominello should apologise to the independent agencies for not giving them a chance and said: “I think they (the government) really messed up this process.”
Looking ahead at the IMAA’s next steps, Buchanan said they will continue to call it out and added: “We won’t rest and just put it down. It’s something that needs to be brought up where appropriate constantly.”
In a statement to Mediaweek, a spokesperson for the Department of Customer Service said: “The NSW Government manages media buying for more than 250 advertising campaigns a year and in July last year opened a tender for a new Media Agency Services contract.
“Any member of the Independent Media Agencies Australia (IMAA) had the opportunity to be part of the tender process for the NSW Government Media Agency Services contract managed by the Department of Customer Service.
“By aggregating and centralising media planning and buying services, the NSW Government is expecting to save at least $100 million in three years.”
The Department of Customer Service maintains that they have followed procurement guidelines. The majority of the companies in the advertising a digital communication scheme have Australian company numbers, while 70% are small and medium enterprises.
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Top image: Sam Buchanan