Agencies frustrated at federal government's slimmed media pitch

Ashley Regan
By Ashley Regan | 11 March 2024
 
Towfiqu barbhuiya via Unsplash

Media agencies are feeling the pinch of what they see as a tighter submission period for the federal government's master media agency account, AdNews can reveal.

The industry has expected the tender to open since July last year when the government put out an advanced notice.

However, the submission period was opened 35 calendar days before the deadline - published February 8 and closing March 14.

It is understood some agencies have chosen not to participate in the pitch due to the shortened period mixed with the amount of work needed to be done.

But a Department of Finance spokesperson confirmed to AdNews that the previous approach to market was open for 38 calendar days - from November 3 to December 11, 2017.

"The current approach to market tender open period is in accordance with the Commonwealth Procurement Rules, which states at 10.22 The time limit for potential suppliers to lodge a submission must be at least 25 days from the date and time that a relevant entity publishes an approach to market for an open tender," the Department of Finance spokesperson said.

In those four weeks, agencies are required to submit not just the RFP but two strategic briefs.

The winner will start servicing the account July 1, a total four month pitch process. In comparison, last year the NSW Government media account review was a year long process.

Industry insiders told AdNews that the pitch seems "very standard" and the "rushed" process makes agencies believe the government has no interest in moving the account.

However, Omnicom Media Group is planning to submit, meaning the holdco is working overtime to make the tight deadline and snap up the account.

OMG agency OMD holds the $70M NSW government media contract and the $100M Victorian government media account.

Incumbent agency Universal McCann (UM) has held the account since 2002, with a pause when dentsu took over between 2014 and 2018.

UM late last month made a "small number" of redundancies in Sydney and Melbourne after a review. Among the movements national head of trading Andrew Murray left to explore new opportunities.

According to the tender documents the account is now worth $163 million. 

This figure is lower than previous years as the Government spent more to promote health and safety during COVID times.

Master Media Agency arrangement expenditure

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