The NSW Government has awarded its lucrative $65 million master media contract to UM, sidelining 20-year incumbent MediaCom.
MediaCom will still sit on a panel of agencies providing media planning services along with UM, Match and Optimum Media Direction.
UM will handle all the campaign work with ZenithOptimedia landing the other major slice of the business, covering recruitment, public notice and typesetting media services.
The account, which covers departments including NSW Health, Roads and Maritime Services, Destination NSW and NSW Police, was put out to tender in April.
The new contracts commence on 1 October 2013 for a period of three years with the option of two 12-month extensions.
The loss will come as a blow to MediaCom, which is currently defending Carlton United Brewers and QLD Government. It retained the Specsavers account.
"We are proud to have done an amazing job and delivered some of the best results for NSW Government over many years. However we regretfully heard this morning that the buying business has gone to UM," said CEO Mark Pejic. "We have yet to understand the details around this but we are incredibly disappointed. We will continue to support our business, people and culture passionately."
UM is also the Federal Government's media agency.
CEO Mat Baxter said the win was "a very special and important moment for UM and we're thrilled to welcome NSW Government as our newest client."
The NSW Government spent $64.4 million on main media in the 12 months to July 2013, down from $70.1 million in the prior corresponding period, according to Nielsen.
See the statement below:
Following the completion of the tender for the Media Agency Services Contract the NSW Government has appointed Universal McCann as its new media buying agency.
Universal McCann have also been named as one of a panel of companies providing media planning services along with Match Media, Optimum Media Direction and MediaCom.
ZenithOptimedia has been appointed as the successful agency for the recruitment, public notice and typesetting contract.
The new contracts commence 1 October 2013 for a period of three years with the option of two 12 month extensions.
The media buying agency is responsible for the purchase and placement of all NSW Government public awareness campaign advertising (including health and road safety messages, tourism promotion and other announcements of Government initiatives and activities), and negotiates media rates on behalf of all government departments.
The media planning agencies are responsible for the strategic planning of all public awareness campaign advertising, working with individual departments to deliver on campaign objectives.
The central aggregation of all Government advertising activity generates significant discounts on normal advertising rates for the benefit of all departments; irrespective of the size of their expenditure. In addition the consolidated contracts provide streamlined and high quality service delivery and account management that ensure the efficiency and effectiveness of Government advertising.
This contract does not include the provision of creative advertising services. These services are delivered through the advertising and communications services scheme panel.
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