UM has defended the federal government’s master media account, Mediaweek can confirm, beating out Omnicom’s PHD in the final stages of the competitive pitch.
In a statement to Mediaweek, a spokesperson from the Department of Finance said: “Universal McCann (UM), a division of Mediabrands Australia Pty Ltd, has been selected as the new Master Media Agency following a tender process. A Deed will be signed shortly following which the outcome will be published on AusTender.”
The account, valued between $150 to $240 million, has been with the IPG Mediabrands agency for the past six years.
The tender process began with an advance notice issued in July last year, with expressions of interest closing in December. The tender was publicly announced in February this year and closed in mid-March.
“I’m delighted UM and its team get to continue the great work we have delivered for the Australian Government over the last 6 years following the rigorous six-month pitch process,” said UM CEO, Anathea Ruys.
“Working with the Australian Government is a privilege. It is also a responsibility which we take very seriously knowing the campaigns we create, from awareness through to behavioural change, really do save lives and help improve the country every day,” Ruys concluded.
Anathea Ruys
The Independent Media Agencies of Australia (IMAA) had also submitted a proposal for an independent agency consortium to service the account, which was rejected. This proposal, developed with an Australian-owned third-party management consultancy, would have involved a consortium of IMAA members sharing the service of the major account.
UM has managed the government’s media buying, planning, and strategy since 2018. The agency successfully defended the account in 2021, extending its tenure until June 2024.
The current master media agency services arrangement expires on 30 September 2024. The new contract would be effective from October and operational for 4 years, with an option to extend for up to another 4 years.
The master media account oversees the placement of all advertising under the Central Advertising System, which consolidates government advertising expenditure and buying power to secure optimal media rates. The system is administered by the Department of Finance and includes campaign, non-campaign, and complex non-campaign activities.
UM first won the federal government master media account in 2002 and held it until 2014 when Dentsu Mitchell (now dentsu X) won the account. After four years, UM reclaimed the account.
“There is no greater accolade than being reappointed to the Australian Government master media contract,” said UM managing director, government, Brett Elliott.
“We know from experience that it takes broad and deep capabilities, purpose-built technology and the right culture and respect to meet the complex advertising needs of government. More than anything, this win is due to the team of stars we have working at UM, from graduates through to seasoned operators who truly understand the nuances of government communications best practice.”
Elliot continued: “That expertise has been reflected in the incredible work we have always delivered; being reappointed to the account provides an exciting opportunity to further build on our shared successes.”
Brett Elliott
The year has seen a wave of government accounts come up for pitch.
In February, the Department of Defence began a pitch process for its creative and digital account, currently held by VML.
In July, Tourism Tasmania opened its lead creative agency contract for pitch, with BMF the incumbent.
That same month, Tourism Australia appointed a panel of agencies – Accenture Song, The Monkeys, and Droga5 – to handle its integrated global creative and digital services under a five-year contract, with options for two one-year extensions. The creative account had been held by M&C Saatchi, and the digital account by Digitas since 2018.
UM Canberra is currently the media agency of record for the ACT Government, appointed in March 2023.
OMD won the $100 million Victorian government master media account in 2021, followed by the $70 million NSW government account in 2022.
EssenceMediacom has held the $60 million Queensland government media account since 2004.
The South Australia government media account, valued between $40 to $50 million, is shared by Wavemaker Adelaide and Carat Adelaide, who have held the account since 2010.
Last year, independent media agency Atomic 212° was reappointed to the Northern Territory Government and Tourism Northern Territory media services accounts, valued at $10 million.
Mediaweek reached out to PHD, which had no comment.