Blue Sky Media CEO on the ups and downs of leading his agency and growth in 2022

Blue Sky Media

• Munners spoke about the agency’s growth in the year ahead and his admiration of the IMAA

Blue Sky Media is an independent, fully accredited media planning and buying advertising agency, established in 1999 by CEO Tim Monro, better known in the industry as Munners.

Munners spoke to Mediaweek about leading his agency through ups and downs for the past two decades, growth for the year ahead and his admiration for the IMAA.

Blue Sky Media in the early days

The CEO spent the early part of his career in radio with Austreo in the advertising side of the business. Munners explained he and his business partner started the company because they saw clients turn away from radio and opt for mediums such as TV, magazines, and newspapers.

Around that time, they decided to set up an agency that looked after all their clients’ advertising needs.

Munners recalled: “I went out and saw a client, and he said, ‘Look, I’ve got this new product, it’s a new mobile phone, and I want to launch it to the market. But I don’t think radio is going to do a good job. I think I’m going to need more of a visual medium, like TV or outdoor magazines, or press.’ I said to him, ‘Yeah, absolutely, I can help me help you with that.'”

Munners admitted he had no initial clue about what to do at that moment, but they began work on the client’s request for a TV and outdoor campaign. “We sat down, we rang the TV networks, the outdoor networks, and we got it nailed. It was easy,” he said. “We started the company in September 1999. Interestingly, we’re almost like brokers, going to our clients and getting a good deal on TV or a good deal on the other radio stations or newspapers.”

Munners said their clients also needed a creative solution. In response, they launched an art studio to help make ads, posters, brochures, and scriptwriting for radio and TV commercials for clients during the agency’s first six or seven years.

After this period, the CEO revealed their creative clients began to move on, either starting their in-house creative departments or partnering with other creative agencies. This eventually led to Blue Sky going down the media planning and buying road.

“By about the GFC (2008), we weren’t doing any creative at all. We became a media planning and buying agency purely; that’s where our strength is. That’s where I’m most comfortable; I’m not a designer or a creative person. I love spreadsheets, and I love looking at strategy – that’s where our strength lies,” Munners noted.

Munners on being CEO and the agency’s specialisation

As the CEO, Munners oversees the business and finds clients. His four account directors deal with the media and clients directly.

He also noted that the company has two parts to the business. The first is the direct relationship between the agency and the client, such as Paddy’s Markets. The second part of their business is working with 23 other smaller agencies who need help with their media or have accreditation with the media companies.

“A lot of them are creative agencies who don’t know much about media. So, we work very closely with them and their clients and help them develop media strategies. Instead of the creative or small agency dealing directly with the media company, like Channel Nine or KIIS FM, we deal with them and book the media on the creative agency’s behalf, which is on the client’s behalf,” he explained.

Munners said it is a big part of their business and currently where the growth is for the company.

“The direct part of our business is very important, and it’s more profitable. We make bigger margins on the direct business. But, what we call the third party agencies, that volume is much greater because so many of them put their advertising all of their clients advertising dollars through us,” he added.

Blue Sky Media has built a reputation for delivering on offline TV, radio, and press outdoor. Munners called it their biggest strength because it is where the business cut its teeth on.

Digital is where the business is experiencing its biggest growth. The agency has been working closely with fellow IMAA member Yango to achieve and maintain that growth. “Our digital business has grown. Every year it grows 200% or 300%. It’s booming,” he added.

Blue Sky Media

Blue Sky Media clients then and now

As the digital aspect of the business grows, Munners said Blue Sky has continued to maintain its long relationships with clients. The agency has worked with Paddy’s Markets for 15 years. Blue Sky has also done plenty of planning and buying work for Vittoria Coffee, which does creative through its agency, since the early 2000s.

In terms of recent clients, Munners said Blue Sky Media has several pharmaceutical brands they have partnerships with that are currently in the works.

Munners said that he believes the growth stems from the impact of Covid. He said: “They are going through incredible growth, small brands are becoming big brands over the last two or three years, and they’re putting it all down to COVID.”

“They’re developing E-commerce solutions, expanding their distribution through the likes of Chemists Warehouse, Priceline, Terry White Chemmart. The pharmaceutical space for Blue Sky is another big growth area for us in 2022 and 2023,” he added.

The impact of Covid on the agency and the year ahead

Munners revealed that the pandemic had a significant impact on the business. He said: “We got really hammered. At the time, we had a number of promoters who brought bands and acts to Australia and toured them. We also had a couple of travel agencies.”

“COVID did impact us quite substantially,” he added. “I reckon that especially in 2020, we’re down about up to 70% in some months. But we’ve gradually come back, and I think the promoters are all coming back and touring acts and bands.”

The CEO also noted that the pandemic meant they had to scale back on staff and let people go. But he said that despite the difficult circumstances, the business now runs more efficiently.

“I think we weren’t as efficient pre-Covid as we are now. We’ve all started working a little bit harder, getting a lot more productive, not just me but all our staff. So, it’s been quite good from that perspective. I’m happy about that,” Munners said.

Looking to the year ahead, Munners shared that they have big plans for Blue Sky Media in terms of expansion. At the same time, their work in the pharmaceutical space will grow and attract more clients.

The CEO also noted an increase in their digital presence from this year leading into 2023 in “leaps and bounds.”

On the IMAA

Like many independent agencies, Munners had nothing but praise for the work of the IMAA. As one of the initial members of the industry association led by CEO Sam Buchanan and business manager Rebecca Culson, he noted that the educational webinars, the networking events, and group deals, including the trade indemnity insurance deal, as the notable highlights and benefits of being part of the group.

Munners also praised Buchanan and his team for getting out into the marketplace and spruiking independent agencies. He said: “In the last two or three years, people now are aware of the indie agencies. I think now we’re a force to be reckoned with, and I can only put that down to the IMAA because they’re just out there constantly banging the drum, which is so good.

“I think also it’s really good timing because from what I can see, a lot of clients are becoming a little bit disenchanted with the bigger end of town. They feel like they’re not getting the representation that they need. They feel like they’re a small fish in a big pond.

“But when they come to an indie, they go from being a small fish in a big pond to being a big fish in a small pond. They’re dealing with CEOs like me, dealing with account directors, whereas, at the big end of town, they’re dealing with 20-year-old planner buyers who have no idea their target market.

“With the Indies, we’re well rounded; we’ve got experience. I’m 63 years old. I’d like to think I’ve got a wealth of knowledge that I can impart to our clients and help them. I think that the IMAA has let people know that the Indies are out there, and a lot of clients are looking for an alternative,” Munners added.

IMAA

To Top