The federal government spends more on advertising than several major companies including Coles, Woolworths and McDonalds but some of the campagns it funds are of "dubious" value, according to research by the public policy think tank Australia Institute.
The latest Standard Media Index (SMI) analysis shows government as the biggest spender when it comes to media agency bookings.
Government category ad spend grew 74% in February as pre-federal election spending surged along with continued COVID messaging.
However, this spend will stop when an election is announced soon, to be replaced by political party spend.
The Australia Institute research finds: "Current rules around government advertising have failed to prevent dubious and controversial advertising campaigns from being funded, at a cost of millions of dollars of public money.
"Reform is needed."
According to a Department of Finance report, Australian Government Campaign Expenditure for the 2020–21 Financial Year, the biggest single advertising spender was Defence with $32 million.
The COVID response was across several categories, totalling $50 million,
A survey shows the majority of Australians (76%) want greater independent oversight over the use of taxpayer money for government advertising.
The Australia Institute research, Bad Impressions: Scrutiny of government advertising, found:
- The Australian Government spent $145.3 million on campaign advertising in the 2020–21 financial year.
- Woolworths spent $118 million on advertising and McDonalds $83 million
- New polling reveals three in four Australians (76%) agree that the Auditor-General should review government advertising to make sure it meets genuine information needs
- Research recommends the Auditor-General should play an independent oversight role in approving government advertising
“Australians would be shocked to learn they are footing the bill for a government advertising budget which dwarfs that of companies like Coles, Woolworths and McDonalds,” says Bill Browne, senior researcher for the Australia Institute’s Democracy & Accountability Program.
“It’s no wonder voters are cynical about Government advertising when they are spending more than these major multinationals.
“Our research reveals the overwhelming majority of Australians (76%) agree that the Auditor-General should review government advertising to make sure it meets genuine information needs.
“The current rules have failed to prevent dubious and controversial advertising campaigns from being funded, at a cost of millions of dollars of public money.
“There is clearly a need for greater independent oversight.
“Reform is needed and should focus on finding a role for the Auditor-General in regulating proposed campaigns, not just auditing their administration after the fact.
The research ‘ is an extension of the crossbench launch yesterday of the Democracy Reform Agenda for the 47th Parliament
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