UM has been chosen to continue media planning and buying duties for the Federal Government for another three years, B&T can reveal.
The IPG Mediabrands agency had been battling Omnicom’s PHD in the final stage of a process that kicked off last December.
B&T understands the government and UM are in the final stages of negotiations, but the agency is the preferred rider. It had been rumoured several weeks ago that UM was favoured to retain the business in a process that was supposed to end in July but was extended to September.
Both agencies involved declined to comment about the review.
UM’s retention marks the second time in a row it has kept hold of one of Australia’s largest and most complicated media buying operations. UM first picked up the account in 2018 from DentsuX, but has previously worked with the federal government between 2002 and 2014.
UM’s government services team, which numbers north of 100, is led by managing director Brett Elliott.
Since FY09, the federal government has spent an average of $137 million on advertising each year. During Covid spending soared to $240 million.
In its most recent fiscal year, the department that spent the most on media was Health & Aged Care ($47 million) with the majority spent on Covid vaccine campaigns ($32.6 million). The Department of Defence was the next biggest spender with $41.8 million spent on recruitment ads.
By channel, digital attracted the most ad spend ($56.3 million) followed by TV ($40.8 million).
The Albanese government has flagged that it would attempt to rein in spending on advertising campaigns.
Government reviews and delays have come thick and fast this year. Aside from media, creative contacts have come under the hammer with Accenture Song, The Monkeys and Droga5 recently winning the prestigious Tourism Australia account.
The Government Communications Campaign Panel was up for review but the process has now been pushed back into 2025.
This 22-strong panel includes advertising agencies Ogilvy, The Monkeys, TBWA, Clemenger BBDO and BMF.
B&T has contacted the Federal Government for comment.
