OMD has won the NSW government’s new Media Agency Services (MAS) contract valued at more than $70 million.
The deal, starting in October and running to 2025, consolidates a roster of five media agencies into a single supplier, and follows a two-stage tender process over 12 months.
The NSW Department of Customer Service says the deal is expected to save taxpayers more than $100 million across three years.
While the NSW government claims “the tender was open to all types of media agencies”, the industry body Independent Media Agencies of Australia (IMAA) criticised the tender for locking out independent media agencies and favouring foreign-owned players.
The NSW government ignored the pleas and the first shortlist released only included multinational agencies, with independent media agencies not making it past the first stage.
William Murphy, the Department of Customer Service deputy secretary of customer, delivery and transformation, said the MAS contract was estimated at $70 million per year and involves media planning, strategy and buying services for more than 250 NSW government advertising campaigns a year, including those for COVID-19 and influenza vaccinations.
“Whether it is the latest health advice, connecting people with government services or cost of living support through the savings finder program, the NSW government is committed to delivering customer-centric communications that provide value to the people of NSW,” said Murphy.
“Savings will come from aggregated media buying power along with centralised oversight and management of NSW government campaigns and data to ensure continuous improvement of customer communications.
“The NSW government can reinvest these savings back into essential services such as roads, hospitals and schools which support people, families and local communities across the state.
“The NSW government looks forward to continuing to work with OMD and we are confident OMD will be able to manage the varying needs of the numerous NSW government departments.
“We thank other agencies for their hard work and dedication to servicing NSW government departments across the past five years.”
The new MAS contract consolidates the existing panel of five media agencies to a single supplier with the new contract to start in October 2022 and continue until 2025.
The tender requirements were based on a thorough opportunity and needs assessment with an open expression of interest followed by a closed request for proposal to short-listed suppliers.
OMD Australia co-CEO Sian Whitnall said: “The strengthening of our relationship across all NSW government departments aligns with OMD’s evolved ambition of performance with integrity for our people and partners, to drive partnerships of value and sustainable ways of working.”
OMD Sydney managing director Kim Hamilton said: “We will proudly build upon our existing relationship with the NSW government which centres on transparency and mutual accountability, to deliver for all departments and the people of New South Wales.”
DCS is also welcoming new service providers to the NSW government’s Advertising and Digital Communications Services Scheme (ADCSS), which lists 11 service capabilities across marketing and advertising. There are already 226 companies which are part of the ADCSS, with more than 90% having an Australian Company Number.
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