Tasmanian government appoints 28 agencies to $6.5m account
The Tasmanian government’s pitch for its $6.45m account has concluded, with a panel of 28 agencies appointed across various marketing and communications services.
Throughout the process, 55 bids were received, 33 of which were from Tasmanian businesses. To be considered ‘Tasmanian’, an agency had to have a permanent office or presence in the state, and employ Tasmanian people.
Tasmania has appointed 28 agencies for three years
21 of the successful agencies are categorised as Tasmanian.
That’s an average of $230k per agency. Looks shit, but gets worse.
Assuming the $6.5m includes media costs, even with a modest two-thirds for media, that means just $77k per agency on average. Given that any agency wants/needs to make 10-25% profit/margin on that, they’re looking at walking away with a cool $14k. For a year’s work.
Nice win. Very worth it.
This doesn’t even take into account the cost of pitching – which is probably more than the average expected revenue. This is essentially throwing money in the money pit. I’ll buy a lottery ticket thanks.
Now there’s efficiency in action……..and a job creator for Tassie marketing.
How incredibly inefficient
That means 28 contracts which means 56 teams of lawyers.
How close to $6.5m will the legal bills be?
And marketers say agencies are inefficient. Pffft.
The administrative overheads alone to manage 28 agencies would be more than the value any one partner will receive. But it will keep a bunch of procurement and middle management public servants in Tassie busy for years. Great for job security for people unable to make it in the private sector.
How is The Works a Tasmanian agency?
https://theworksagency.com.au/contact-us/
hahah is this a joke? seriously. 20+ agencies for little brand Tasmania. they could hire 5 people in house and wipe off 75% of those agencies. this is just ridiculous.
Their team would spend the majority of time managing too many agency account managers – with a real lack of integration in what they’re trying to achieve. Ridiculous!
Supplier awards nights will be lit.
And surely they should add Santa Claus and every Tom, Dick and Harry to the list while they are it!
Some top creative talent in this list.
Tassie’s an amazing place to live/visit/holiday/work. Looking forward to helping showcase the best of the state!
Was just saying to my colleague they could literally run this account with an account director, planner/buyer and coord at one agency. Smh.
28 agencies… they should have closer to 3. Australia’s government is just a shambles.
Are you friggin serious? What an absolute joke – I thought that Stacia was padding out jobs for the boys up here in public-service-land, but fair dinkum, this takes the cake. Unreal.
Why even bother holding a pitch if you’re just going to appoint lot? This is a typical Gov clusterfuck
…or could be this:
https://www.twpg.com.au/general/Retail.aspx
Having been exposed to that market, many on the list are just a few people. Only a few would be over 20.
Not only is the cost of pitching to be on a list inefficient, but all of these agencies will be continually pitching against each other for every brief that comes out of the individual departments. I thought these kind of arrangements died.
Goodness. You two have demonstrated some leading thoughts process here. “Beaurocracy” can’t even spell Bureaucracy to lead us in to his first math lesson, in which he calmly shows us how to reach an average of a number without any insight to the account whatsoever. And “but wait there’s more”, I’d advise the lottery ticket is the only way you have a chance on running an account, or business for that matter.