The decision has been delayed until the end of September with the incumbent UM in a straight shootout with Omnicom Media Group’s PHD.
The Federal Government has retained UM’s services for a further three months while it continues to evaluate its master media agency services tender. Initially, a decision had been planned for 1 July, but this has now been pushed back.
A Department of Finance spokesperson told B&T that UM will continue to handle the Government’s media buying and planning arrangements until a decision has been made.
B&T understands the review is between IPG Mediabrands’ UM, which has held the account since 2018, and PHD. Both agencies declined to comment on the process.
Other agencies that had tendered for the account have been told they were unsuccessful.
Last fiscal year, the Federal Government and its various departments and agencies spent $131.4 million on media making it one of the largest accounts in Australia.
The department that spent the most on media was Health & Aged Care ($47 million) with the majority spent on Covid-19 vaccine campaigns ($32.6 million). The Department of Defence was the next biggest spender with $41.8 million spent on recruitment ads. By channel, digital attracted the most ad spend ($56.3 million) followed by TV ($40.8 million).
Since FY09, the average annual spend is $137 million, with a large spike during Covid when spend increased to $240 million. The Albanese government has previously flagged that it would attempt to rein in spending on advertising campaigns.
The delay in the government’s media review follows a large delay in a review of the Government Communications Campaign Panel, with a standing offer period notice that has extended the period from 19 March 2024 to 30 June 2025.
This 22-strong panel includes advertising agencies Ogilvy, The Monkeys, TBWA, Clemenger BBDO and BMF.
Tourism Australia is also due to reveal the outcome of its creative and digital pitch with Accenture, Publicis Groupe and Clemenger Group vying for the prestigious account.
