The Independent Media Agencies of Australia (IMAA) has responded to the NSW Government’s appointment of OMD to its Media Agency Services contract.
The contract is set for three years, from October 2022 until 2025, and is worth $70 million a year. It consolidates five media agencies into a single supplier following the two-stage tender process over 12 months.
Sam Buchanan, IMAA CEO, said of the master media outcome: “While we are disappointed with the way the NSW Government conducted its master media pitch and the outcome, we are not surprised.
“The Government has turned its back on the independent media agency sector and appears content for agency profits to be sent overseas, rather than supporting Australian-owned businesses.
“The IMAA is continuing to have active discussions with the Government to change the process in the future,” he added.
William Murphy, the Department of Customer Service deputy secretary of customer, delivery and transformation, said the contract involves media planning, strategy and buying services for more than 250 NSW government advertising campaigns a year, including those for COVID-19 and influenza vaccinations.
“Whether it is the latest health advice, connecting people with government services or cost of living support through the savings finder program, the NSW government is committed to delivering customer-centric communications that provide value to the people of NSW,” he said.
“Savings will come from aggregated media buying power along with centralised oversight and management of NSW government campaigns and data to ensure continuous improvement of customer communications.
“The NSW government can reinvest these savings back into essential services such as roads, hospitals and schools which support people, families and local communities across the state.
“The NSW government looks forward to continuing to work with OMD and we are confident OMD will be able to manage the varying needs of the numerous NSW government departments. We thank other agencies for their hard work and dedication to servicing NSW government departments across the past five years,” he added.
The NSW Department of Customer Service said the deal is expected to save taxpayers more than $100 million across three years.
Sian Whitnall, OMD Australia co-CEO, said: “The strengthening of our relationship across all NSW government departments aligns with OMD’s evolved ambition of performance with integrity for our people and partners, to drive partnerships of value and sustainable ways of working.”
Kim Hamilton, OMD Sydney managing director, added: “We will proudly build upon our existing relationship with the NSW government which centres on transparency and mutual accountability, to deliver for all departments and the people of New South Wales.”
DCS is also welcoming new services providers to the NSW Government’s Advertising and Digital Communications Services Scheme (ADCSS) which lists 11 service capabilities across marketing and advertising. There are already 226 companies which are part of the ADCSS with more than 90 per cent having an Australian Company Number.
In May, the NSW Government responded to the IMAA CEO Buchanan calling out the government and NSW Customer Services minister Victor Dominello for locking them out of the lucrative master media expression of interest.
In a statement to Mediaweek at the time, a spokesperson from 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,” they added.
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.
At the time, Buchanan told Mediaweek it was “lazy policy”. He 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.”
See also: IMAA CEO Sam Buchanan calls out NSW government for turning its back on indie agencies
See also: NSW Government responds to IMAA claim they locked indie agencies from master media EOI