The NSW Government has ordered a 25% cut to its advertising spend in this week’s mini-budget, in a bid to save $31 million each year.
The state spent an estimated $90-100 million in the 2007-8 financial year on its advertising, making it the seventh biggest media advertiser in the country, according to Nielsen Media Research figures.
Premier Nathan Rees has told government departments to get smart about the way they inform the community and encouraged bureaucrats to use cheaper, online advertising.
“This is a mini-budget defined by the unprecedented economic times in which we live.
“The Government must tighten its belt so we can continue providing frontline services – and that’s what we are doing,” he said.
A current list of accredited creative ad agencies on the NSW Department of Commerce website includes George Patterson Y&R, Clemenger BBDO, The Campaign Palace, DDB Worldwide and Smart.
Mediacom currently holds the NSW Government’s media planning and buying account, while Customedia handles some of the state government’s strategic work.
Ben Lilley, chief executive of Smart said: “A lot of marketers are reviewing their needs and we’re predicting for the next year that mid-sized independent agencies like ourselves will be the beneficiary of those changes because a lot of very big clients are down sizing from very big agencies and they need mid-sized agencies that can work better with mid-sized budgets”.
