The NSW Government has responded to the Independent Media Agencies Australia (IMAA) after CEO Sam Buchanan called the government and NSW Customer Services minister Victor Dominello out.
Buchanan expressed his disappointment at the NSW Government for turning its back on independent media agencies by locking them out of the $78 million master media expression of interest, as previously reported by Mediaweek.
In a statement to Mediaweek, a spokesperson from the Department of Customer Service said: “The NSW Government manages media buying for more than 250 advertising campaigns a year and in July last year opened a tender for a new Media Agency Services contract.
“Any member of the Independent Media Agencies Australia (IMAA) had the opportunity to be part of the tender process for the NSW Government Media Agency Services contract managed by the Department of Customer Service.
“By aggregating and centralising media planning and buying services, the NSW Government is expecting to save at least $100 million in three years,” they added.
The Department of Customer Service maintains that they have followed procurement guidelines. The majority of the companies in the advertising a digital communication scheme have Australian company numbers, while 70% are small and medium enterprises.
Earlier in the week Buchanan spoke with Mediaweek and called it “lazy policy”. He added: “The government keep saying that it’s about the efficiencies of just dealing with one business. It doesn’t make sense from the diversity of thought, of service – some smaller departments will lose out because they’re caught up in a big beast – of supporting their own economy.
See also: IMAA CEO Sam Buchanan calls out NSW government for turning its back on indie agencies
“All Dominic Perrottet and Victor Dominello talk about on their high horse is supporting the Australian economy. And yet, when it comes to backing it up, they’re sending the money off to an offshore business,” he added.
Buchanan said the government’s actions sent the wrong message to Australian-owned businesses, not just agencies. He added: “It shows they’re not prepared to back them up.”
The IMAA CEO said master media tender was an important initiative to follow through after seeing the same situation happen to Victorian agencies. Buchanan had hoped to spare NSW agencies from the same problem.
Buchanan added: “I think they didn’t think they would be pulled up on it and thought they could push it through. We talked to them for more than ten months, and they’ve been kicking the can down the street for that long.”
“The government spoke about all the data they’ve got that showed the efficiencies, but they haven’t shared the data with us. So, we don’t believe the efficiencies are there, and it’s probably more lazy policy and just easy for them to decide on one company.”
Buchanan explained that it wasn’t about rate, buying power or a hate campaign against the holding companies.
“We want a chance to be able to put a hand up to the business. There are a lot of benefits to working with indies, such as diversity of thought, being more nimble, and supporting the Australian economy,” he said.