Barry O’Brien’s Department 212 wins Dick Smith Electronics $20m media account from Carat
Industry veteran Barry O’Brien has won the first media account for his fledging media agency prying Dick Smith Electronics away from Carat.
The win sees Dick Smith become a foundation client for O’Brien’s new agency Department 212 which officially launched two weeks ago.
O’Brien declined to comment on the win this morning, but it is understood it sees 212 take over the media buying account for all of the retail brand’s Australian and New Zealand advertising.
The account is thought to have increased its media spend in recent months and is estimated to be worth in excess of $20m a year. Nielsen estimates, Dick Smith Electronics spent $13 million in Australia on media in 2013, a fall from $16 million in 2012.
how do you possibly hand a $20m account o a business which launched 2 weeks ago.. makes a mockery of procurement processes which ask you to show case studies, credible history, strategic offering and how its been applied, etc
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Hi Hmmm,
Or the client involved might know Barry O’Brien and see the value of being the founding client.
Cheers,
Tim – Mumbrella
Well said Tim. The truth is that procurement processes don’t work any more. Any established agency with tenure can drum up case studies, the usual “client friendly” quotes, a handful of sexy branded planning tools like World Super Max Planner 2 – The Deeper Consumer Version (with exclusive access to real consumers ) that no one really knows how to build executable plans from and then beat their chest about billings.
The new world order is people – having the best thinkers who invest time in understanding our businesses. For example Manchester United typically (not intending to start a soccer debate) win because they have the best leadership and best players who play together very well as a team. Having a big agency name, 100s of global offices, gorgeous receptionists and expensive palm trees scattered around the building ($1250 a pop from the garden centre) no longer seem to be the most effective or favoured criteria for selecting agencies.
Agency A could win every award there is this year, then the dream team move to Agency B. Does that mean that Agency A with all its newly won awards and case studies but none of the people who won them should be winning pitches.
Clients are clearly telling us no. Wake up big and small agencies, recruit the best, look after them and win business … and keep it.
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You’re right Tim
Relationships are just as important as work.
The lack of respect for each other in this industry staggers me sometimes!
Also the amount of $$$ some agencies charge for work while employing their staff on minimum wages, long unpaid overtime is completely rampant & wrong.
Hopefully Barry pays his staff on respected wages, has a work/life balance culture, and leads by example. If so, I wish him and his agency all the best!!
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Dear Hmmm
You have identified the problem with media agency selection today – the procurement process.
If clients use the people employed to find the cheapest toilet paper for the office to find the cheapest media deal, then they deserve the s**t that they get.
Well done Barry, I am glad to see that at least one client can see beyond the bean counters to recognize true value for money. Hope this is the first of many new wins.
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Good onya Baz. I’d love it if we could land a 20 mil deal as our sign on… Well played and don’t listen to the haters. Let us know when you’re opening in other states!!! Shake it.
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@Tim – Its great to see a client hand business to someone as well regarded as Barry based on what is obviously a trusted relationship. I’m very happy to see a client NOT use procurement to select a marketing partner, what a refreshing change.
BUT- there’s still a fair degree of risk being undertaken here by the client.
This business has been going 2 weeks and I presume is nowhere near fully staffed yet. Good staff are yet to be found end employed. As good as he is, Barry isnt going to be sitting there doing Dick Smith’s account strategy, or implementation planing, or trading negotiations, or digital strategy, or SEM optimisation, or special projects, etc etc.
I still think handing a $20m piece of business to a good guy, with little/no staff, systems, tools is a bit of a risk. But, each to their own I guess. At least the client will get great value in the service and advice Barry can undoubtedly provide.
Good luck to Barry.
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Hmmm,
How do you know all this about this new business – how do you know there are no systems, tools or little or no staff? You are making quite a negative assumption that the state of readiness is not in place, staff are not in place, no trading negotiation readiness and so on.
… smells like a little bitterness here ….LOL.
Good onya Baz
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Good things happen to good people Bazz.
Enough said
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This could be a key reason
(quote from their website):
4. “Remuneration: We prefer not to charge fees or ask for retainers. We prefer to be paid only when we perform and only when you succeed.”
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@Probably – if they had a crack team of new hires already in place as you suggest, wouldn’t a brand new business be out there promoting them in the trade press? No announcements anywhere as far as i can see..
But you’ve missed the point. The business is brand new and so is the team – so by definition they are untested as an agency – on creativity, on delivery, on results.
Again not talking about Barry, who is very well regarded, but the CEO doesnt do the work.
Just saying its a bit of a risk to hand $20m spend to an untested agency, in my opinion.
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