The process of renewing the federal government's $77 million master media agency contract has been questioned by the official auditor.
The contract was awarded, following an open tender, to IPG media agency Universal McCann (UM) by the Finance Department from July 1, 2018, to June 30, 2021.
The end date was then extended in April 2021, to 30 June 2024. In May 2024 the contract was further extended to September 20, 2024.
And UM was eventually re-awarded the contract.
The Australian National Audit Office, in its investigation of federal government advertising, recommended the Finance Department provide sufficient time to enable the procurement process to be completed “prior to exhausting all extension options” available under the existing contract. The Department of Finance agreed.
Spending by the federal government on media campaigns increased almost 40% last financial year, according to numbers released by the Australian National Audit Office.
Non-corporate Commonwealth entities spent $173.8 million on media placement and $76.6 million on “consultants, services and other costs” in 2023-24.
This was more than 39% more than the $179.3 million the previous financial year, made up of $131.4 million media placement and $47.9 million campaign development.
The current Labor government came to power in 2022 promising to spend significantly less on advertising than the previous regime.
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