As B&T revealed earlier this week, the incumbent UM and PHD are battling for the circa $140 million account, as a decision has been delayed by three months.
A consortium of independent media agencies – led by the Independent Media Agencies of Australia (IMAA) – are pushing for 50 per cent of the Federal Government’s media buying duties after failing to convince the Department of Finance they should service the whole $140 million account.
B&T understands the race to the Federal Government’s master media services account – one of the largest in Australia – has been a two horse race for several weeks, if not longer.
A large independent agency had previously been in the running for the business, but not as part of a consortium.
B&T has heard industry whispers the IMAA’s campaign for an indy consortium to service the Canberra-based account could have held up a process that was due to be rubber stamped ahead of July. UM will continue to handle the government’s media buying requirements until 30 September.
In a widely-shared press release this morning, the IMAA said it will continue campaigning for at least 50 per cent of the federal government’s master media services contract, by advertising volume, to be set aside for local independent agencies. It’s also targeting state governments, and has tabled a proposal for 35 per cent of the Queensland Government’s annual advertising spend by volume to go to indies.
The IMAA argues this aligns with new procurement rules ushered in by the Albanese government that require government departments to source 20 per cent of their annual procurement from small- to medium-sized enterprises.
“While we’re disappointed with the outcome of our proposal, we firmly believe there is still an opportunity for the Federal Government to work with indies via a consortium master media arrangement,” IMAA CEO Sam Buchanan said.
“This model would provide the government with the best of indie and holdco thinking, and a fresh, modern approach that meets the updated procurement standards. We will continue to actively engage both state and Federal Governments on the importance of allowing indie agencies to have a fair go, and to keep profits in Australia.”
Buchanan concedes the federal government’s Master Media Services contract has been designed “specifically for holdcos”, but warns that a “rinse and repeat” approach is no longer fit for purpose, and advocates for greater “diversity of thinking” in the media planning and buying process.
Historically, governments have preferred to partner larger holding company agencies due to the sheer volume of media the government books each year. Added to this is the complexity, specialism, scale, capability, tech and buying power required to plan and book government campaigns across dozens of departments and government agencies.
Another important element is the ability of an agency to assemble large government account teams with a substantial component based in Canberra.