Independent Media Agencies Australia (IMAA) has responded to the New South Wales Government’s appointment of OMD in its Media Agency Services contract.
The contract is set for three years, from October 2022 to 2025, and is worth $70 million per year. It consolidates five media agencies into one vendor after a two-stage bidding process over 12 months.
Sam BuchananCEO of IMAA, said of the main media outcome: “While we are disappointed with the way the NSW Government conducted its main media pitch and the outcome, we are not surprised.
“The government has turned its back on the independent media agency sector and seems content with agency profits being sent overseas, rather than supporting Australian businesses.
“IMAA continues to have active discussions with the government to change the process in the future,” he added.
William Murphythe assistant secretary of the customer service department for customer, delivery and transformation, said the contract involved planning, strategy and media buying services for more than 250 NSW government advertising campaigns by year, including those for COVID-19 and flu vaccinations.
“Whether it’s the latest health advice, connecting people with government services, or helping with the cost of living through the Savings Finder programme, the NSW Government s ‘committed to delivering customer-centric communications that deliver value to the people of NSW,’ he said.
“Savings will come from aggregate media buying power as well as central monitoring and management of NSW government campaigns and data to ensure continuous improvement in customer communications.
“The NSW Government can reinvest these savings into essential services such as roads, hospitals and schools that support individuals, families and local communities across the state.
“The New South Wales Government looks forward to continuing to work with OMD and we are confident that OMD will be able to handle the varied needs of the many departments of the New South Wales Government. We thank the other agencies for their hard work and dedication to serving government departments in NSW over the past five years,” he added.
NSW’s Customer Service Department said the deal is expected to save taxpayers more than $100 million over three years.
Sian Whitnalco-CEO of OMD Australia, said: “Strengthening our relationships across all government departments in New South Wales aligns with OMD’s evolved ambition to perform with integrity for our employees and partners. , to foster valuable partnerships and sustainable ways of working.
Kim HamiltonManaging Director of OMD Sydney, added: “We will proudly build on our existing relationship with the New South Wales Government, which is centered on transparency and mutual accountability, to serve all departments and the people of New South Wales.
DCS is also welcoming new service providers under the New South Wales Government’s Advertising and Digital Communications Services (ADCSS) scheme, which lists 11 service capabilities in the areas of marketing and advertising. There are already 226 companies that are part of ADCSS with over 90 per cent having an Australian Company Number.
In May, the NSW Government responded to IMAA CEO Buchanan calling on the NSW Government and Minister for Customer Services Victor Dominello to exclude them from the lucrative mainstream media show of interest.
In a statement to Media Week At the time, a spokesperson for the Customer Service Department said: ‘The NSW Government manages media buying for over 250 advertising campaigns a year and in July last year opened a tender for a new media agency services contract.
“Any member of Independent Media Agencies Australia (IMAA) has had the opportunity to participate in the tender process for the NSW Government Media Agencies Services contract managed by the Department of Customer Services.
“By consolidating and centralizing media planning and buying services, the NSW government expects to save at least $100 million over three years,” they added.
The Customer Service Department maintains that it followed sourcing guidelines. The majority of businesses in the advertising and digital communications program have Australian business numbers, while 70% are small and medium-sized businesses.
At the time, Buchanan said Media Week it was a “lazy policy”. He added: ‘The government keeps saying it’s about the efficiency of dealing with just one company. It doesn’t make sense given the diversity of thought, of service – some small departments will lose out because they’re caught in a big beast – of sustaining 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 supporting it, they send the money to an offshore company,” he said. he adds.
Buchanan said the government’s actions send the wrong message to Australian businesses, not just agencies. He added: “It shows that they are not ready to support them.”
See also: IMAA CEO Sam Buchanan calls out NSW Government for turning its back on independent agencies
See also: NSW Government Responds To AIMA Claim They Locked Out Independent EOI Agencies From Mainstream Media
