The IMAA has welcomed with cautious optimism the tender for the Western Australian Government’s master media account, with a new clause requiring agencies to demonstrate how their work would directly benefit the local economy.
Although the Government tender requires agencies to now show how much of their work would directly benefit the Western Australian economy and community—noting that the clause is worth
20 per cent of the overall tender score—it neglects to require agencies to show how their profits are reinvested into the local economy.
The much-anticipated tender for the Western Australian Government media account, estimated to be worth $60 million annually, was released last month as part of a broader overhaul of the government’s media buying model.
The new tender will replace the current Common Use Arrangement (CUA) for media booking, buying and planning services, which has been widely criticised for its lack of transparency, media bias
concerns and limited participation. The new whole-of-government CUA will cover multiple categories, including media strategy, planning, trading and creative services, spanning both campaign and non-campaign actions.
IMAA CEO, Sam Buchanan said the new inclusion was good news for the local independent media agency sector, which has long been a significant contributor to local jobs and the Western Australian small business sector, but more should be done.
“The IMAA and its West Australian members are broadly supportive of the tender changes the government has implemented however, we believe there is one critical point missing. While it is commendable to require agencies to demonstrate how their work would benefit the WA economy and community, it neglects to ask how profits will be reinvested. This is key, as only independent
media agencies’ profits remain in Australia to help support local economies and are not sent offshore,” he said.
“In addition, the new tender lifts the limit on panel participants from just two agencies, but it’s still unclear as to how many will ultimately be allowed on the panel. Additionally, the previous buying rules for agencies outside of the CUA also seems to have been removed, but there’s no clarity around what this means.
“We are still optimistic that the changes to the tender will provide a greater seat at the table for the local independent media agency sector, and we will continue to consult the WA Government. We’ve been calling for a more extensive, multi-agency panel approach for media strategy and trading, to provide greater choice and equality for government departments and agencies, and to ensure Australian-owned independent media agencies are recognised.
“This model would be a win-win for everyone—for the government departments that have been calling for more choice, expertise and value from their partner agencies; for the local independent media agencies that can deliver the skill, service, local knowledge and customised solutions required; and for the Western Australian economy and the local jobs the indie sector provides.”
The Western Australian Government is expected to finalise the CUA tender and appoint successful agencies before its current arrangement with incumbent agencies, Carat and Initiative, expires at the end of the year.
Submissions on the tender close on Friday, September 19.
