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.
IMAA CEO, Sam Buchanan, said: “Queensland has utilised a single, multinational media agency master contract for government media services for the past 15 years.”
This being GroupM’s Mediacom (now EssenceMediacom), who last renewed its relationship with Queensland Government in 2019.
“There are some benefits in centralising service arrangements but there is a real question on whether this is the best arrangement for Queensland, and whether modest reforms to government contracting could also benefit the local economy.
“The Government has made it clear that small business is critical to the economy and the Minister for Small Business, Dianne Farmer MP, is making positive progress on 34 key, related election commitments.
“Our proposition for a mandated, minimum 35% of government advertising for Queensland independent media agencies supports the 2020 election commitments and is good for the local economy.”
In other states, OMD currently holds both the NSW Government’s and Victorian Government’s media accounts. OMD is a part of the Omnicom Media Group.
The NSW Government rejected the request from the IMAA last year to review its RFP for the $78 million account, where the government said it was seeking a “single media agency supplier, or panel of agencies from one media agency holding group”.
Mumbrella reported then that after ten months of communication and dialogue with Victor Dominello, the minister for customer service and digital government, the IMAA pulled the pin after it became clear the minister’s office would decide not to proceed with the review.
On the Federal Government level, UM retained the master media account for another three years in 2021.
In July 2022, the Federal Government implemented new contracting rules that will see government departments and agencies required to source 20% of annual procurement from small and medium enterprises.
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Darcy Song was a reporter at Mumbrella, covering media owners, adtech and social platforms. She left in October 2023.
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You have absolutely no idea what you’re talking about if you think Holdco’s are transparent, champ…
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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.
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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…
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Independent agency body calls for spend to go with independent agencies – duh, of course and not news.
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