While some industry experts are backing the Queensland Government Preferred Supplier Panel (PSP) for its 'levelled-playing field’, others worry about the state of small businesses.
The 40-agency panel sets out which agencies are eligible to pitch for and deliver advertising work for Queensland Government departments without needing to run individual tenders for each brief.
Independent Media Agencies Australia CEO Sam Buchanan told AdNews that the broader panel is “a positive step" for both the Queensland Government and the industry.
“It aligns with Queensland’s procurement reforms that put value, innovation and local capability at the centre of decision-making," Buchanan said.
“When there is access to a diverse range of prequalified agencies, including Australian-owned and Queensland-based businesses, it encourages competition, improves outcomes and ensures taxpayer dollars are reinvested locally rather than flowing interstate or offshore.
“It’s encouraging to see barriers removed and a clear shift towards fairness and opportunity. By focusing on capability, innovation and local impact, indies are being given the chance to demonstrate the agility, accountability and local insight they bring to the table.”
However, Tumbleturn managing partner Jen Davidson said that it’s not sustainable for businesses if there’s no scope of work.
"There’s not much point being on a panel if there's no scope of work attached to it,” Davidson said.
“If the point of it was to give small businesses a chance, that's fine, but not if they have to spend their own time, at great cost, pitching for work that they may not get.
“It all depends on how they've aligned scope of work to all these different agencies. But if it is creating a culture of pitching for every piece of work, I don't see how that's sustainable for small businesses or big businesses.”
SQUAD M&A CEO Virginia Hyland said the success or failure of a panel of this size "has very little to do with the number itself, and everything to do with how deliberately it is activated".
“Brisbane is not just recalibrating its government procurement model; it is preparing for a once-in-a-generation global moment,” said Hyland.
“With the 2032 Olympic and Paralympic Games on the horizon, Queensland isn’t simply marketing campaigns — it’s marketing a destination, an economy, and a future.
"That requires more than traditional advertising. It requires deep storytelling, cultural relevance, global reach, and increasingly, live experience and activation.”
Hyland said that a panel of 40 agencies can work for the government, “but only if it’s treated as a capability marketplace, not a flat supplier list.”
“For government, a broader panel reduces dependency risk, increases innovation, and creates competitive tension. For agencies, the upside only exists if there is real work flowing, not just symbolic inclusion.
“The danger isn’t panel size — it’s when panels become passive. Forty agencies without clear briefing discipline can mean diluted opportunity, proposal fatigue and disengagement on both sides.”
Of the 40, 39 are considered small to medium sized businesses, a target which the Queensland government confirmed it would prioritise with 30% participation from local businesses and 50% Australian-owned under its new procurement guidelines.
Independent Brisbane agencies, including nextThursday, Wonderkarma and Cutting Edge, went into liquidation last year.
Khemistry went with the collapse of GrowthOps but emerged again as an independent, appearing back in the agency panel list.
It was reported that Clemenger BBDO’s Brisbane office closed last year.
Buchanan does not see this as a trend of independents closing in Queensland.
“Many locally owned agencies continue to perform strongly, winning work and delivering value for clients.
“The procurement changes introduced by the Queensland Government are designed to support that resilience by simplifying processes and creating clearer pathways for local businesses to work with government departments.”
Hyland said independents closing, consolidating or quietly exiting is a short-term trend happening in the smaller Australian markets.
“Agencies without clear differentiation, scale resilience or strong balance sheets will struggle — particularly those reliant on sporadic project work rather than retainer or embedded relationships,” she said.
“Ironically, that’s another reason government panels matter. When activated well, they can provide stability, predictability and long-term opportunity — particularly for independent agencies.”
Hyland said Queensland’s expanded panel should be viewed less as procurement administration and more as strategic infrastructure.
“In the lead-up to 2032, Queensland has an opportunity to position itself as a global tourism and events destination, attract investment across growth industries, showcase culture, innovation and sustainability and create a legacy brand that extends well beyond the Games.
“That requires the best thinking the market can offer — across creative, media, digital, activation and experience.
“The panel won’t fail or succeed because it has 40 agencies. It will succeed if Queensland knows which agencies to use, when to use them — and why.”
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