NSW government opens up $80m master media tender to independent agencies

Industry group Independent Media Agencies Australia has welcomed a decision by the NSW government to open up its $80 million master media account to independent agencies.

Incumbent OMD holds the contract until September 2027, but the wheels are already in motion to review the business, with tenders closing on 27 November and a second round of interviews slated for February next year.

The procurement process allows individual independent media agencies or consortiums to compete for the account, potentially challenging the established holding company model for government media buying.

The NSW government is seeking a media planning and buying arrangement capable of handling its diverse advertising requirements, with the tender placing particular emphasis on value for money, cost transparency and operational efficiency.

According to the request for tender, the government wants a “media services arrangement that appropriately meets its future needs [and] is a streamlined, efficient and cost-effective solution.”

The tender does not rule out alternative delivery models, including a multi-agency panel similar to the arrangement recently adopted by the Western Australian government.

Instead, bidders must demonstrate appropriate resourcing, efficient cost structures and the ability to manage high campaign volumes and fast turnaround times.

The procurement requirements also place considerable emphasis on transparency throughout the media supply chain, including disclosure of costs, auditable records and restrictions on principal media trading for government work.

IMAA CEO Sam Buchanan said the tender represented an important opportunity for Australian-owned independent agencies to compete for a major government account.

“The IMAA and our NSW members welcome the NSW Government’s request for tender, and importantly, its openness to including the independent, Australian-owned media agency sector,” Buchanan said.

“The NSW Government procurement process emphasises value for money and efficient use of public funds, not simply the lowest fee. Agencies must disclose costs throughout the media supply chain, maintain auditable records, and avoid principal media trading for government work.

“This is what the independent sector does best – we offer agility, senior expertise, staffing tenure, and technology skills as well as cost transparency and efficiency.”

The IMAA has spent the past five years lobbying state and federal governments to increase independent agency participation in public sector media contracts.

Its advocacy in Western Australia helped drive an overhaul of the state's media buying arrangements, resulting in a five-agency panel model that included an independent media agency for the first time.

Buchanan said the NSW tender could provide another opportunity to broaden competition and direct more government advertising investment towards Australian-owned businesses.

“This is a positive step towards levelling the playing field, recognising the collective strength, expertise and capabilities of independent agencies, while ensuring more government investment flows directly to Australian businesses and the local economy,” he said.

“We have long advocated for indies to have the opportunity to bring greater diversity of thinking, specialist expertise and innovation to government media planning and buying.”

The IMAA plans to make a formal submission to the NSW government outlining the outcomes and procurement approach it wants to see from the tender process.

The first-stage request for tender closes on 27 November, with the next stage of the selection process scheduled for February 2027.