Agencies split on Vic govt ad shake up Anila Azhar
Victorian-based advertising and marketing agencies are divided over the Victorian Government’s move to review its current accreditation system for advertising agencies, with some claiming the rules of entry should be more flexible and others arguing the strong selection criteria should be maintained.
There are currently 31 advertising agencies and 26 communications companies on the Victorian Government’s Marketing Service Panel – which includes George Patterson Y&R, Clemenger and Grey.
The accredited agencies are on a three-year contract which expires on June 30.
The Department of Premier and Cabinet responsible for advertising policy has decided it would not be exercising the option to extend the contract beyond June 30 this year.
Instead it will open up the tendering process to allow new and emerging agencies to join, while those already on the list will remain. An annual review will also enable new agencies to join the accredited list.
A tender document is currently being prepared and will be issued shortly.
Tom Martin, director of strategic communications with the Victorian Government, said: “The whole space is changing so rapidly that we just want to have the flexibility to not disadvantage new agencies or players. And also agencies that have missed out on the first round, that may not have all the compliance issues in place, it gives them 12 months to get their house in order.”
However, Kim McDonnell founding partner at marketing communications company Cubed, which is currently not on the accredited panel, said the system needs to become more lenient. With government tenders, the process and the documentation actually does preclude smaller organisations as well as the start-up companies from being eligible and even being considered, particularly when the Government wants strong financial viability. In the past, it precluded smaller shops from being considered even before they get to the skills and capability sections. So, if they are going to allow for some of the criteria to be opened up so that organisations that do have the skills rather than the years in business can apply, it will mean that the best organisations have more chance of winning the business, rather than just the older established companies.”
Boyd Coulson, chief marketing officer at accredited agency CommQuest, which owns accredited agencies such as Boiler Room, claimed that the stringent requirements for entry should remain.
“In essence I do agree that there are hot new agencies that do come out, as long as the existing agencies are given a fair go, I don’t have a problem with it. The system as it is has been working well, as long as the new agencies all go through the correct accreditation process, because there is a lot more to being an accredited agency than just a couple of creative guys with a computer, it is all about being a viable business.”
Smart’s Melbourne operation missed out on a place when it initially set-up shop over four years ago.
Ben Lilley, chief executive at Smart, said it is important for the criteria of entry to evolve considering the changing landscape.
“We were one of the agencies that were a lot smaller when the review took place last, so we missed out. But we are in a much better position now, because we have government credentials from New South Wales. The agency landscape changes every couple of years, so it makes sense for any client to review whether and how their needs are being met every few years, as long as it is not too disruptive to the agencies that are currently working with them.”
Randal Glennon, general manager at Grey Melbourne, which last week rolled out its “Pictures of You” campaign for the Victorian Government’s Traffic Accident Commission, also supported the move.
“There are new entrants in the market that may be relevant to what the Government might need, so it is pretty silly to preclude them.”
