IMAA calls for Queensland Government to spend via indie agencies
The Independent Media Agencies of Australia (IMAA) has called for at least 35% of the Queensland Government’s annual advertising spend by volume to go to the state’s independent media agencies.
Sam Buchanan
The industry body said it has discussed with the state Government how to continue to translate policy and commitments to achieve positive outcomes for independent media agencies as a part of the broader small business community.
You have absolutely no idea what you’re talking about if you think Holdco’s are transparent, champ…
Let’s unpack the claims here.
IMAA says that by using independent agencies (in QLD) could this positively impact the local economy.
The largest contribution an agency makes to the economy locally is in employment of people. The second would be in using local contractors and service providers. None of this would be any different under a holdco or an indie. The economic contribution of any profit/dividend from an independent agency to the QLD economy would immaterial.
If the IMAA was serious about the local economic ramifications it would focus on having all staff on government work located in QLD and using QLD based service staff etc where possible. Ownership is irrelevant. This would keep the majority of salaries linked to fee within the state.
Cmon independent agencies – you need a more sophsiticated angle than berating the government to ‘buy local’ from your mouthpiece.
Not sure about that. This type of contract would have a profit margin, of at least 10% (conservative), from commission and mark ups (hidden and otherwise) of 20% plus, on say $80M billings per year x 15 years (how long this foreign owned entity has had the contract). You do the math – I have and there are a lot of zeros in the number. And for the record; profits made by foreign owned entities don’t stay in Qld they go to where the company is listed and where their shareholders are, in this case London or New York. Notwithstanding the fact that the Holdco media solutions are no longer any guarantee of a quality, strategic approach to media and that is the real point here. Good to know the feathers are ruffled…
Independent agency body calls for spend to go with independent agencies – duh, of course and not news.