Western Australia’s advertising landscape has evolved over the past year as key accounts changed hands amid senior management migration and reduced government spending influenced creative agencies’ 2009 turnover and future plans.
Western Australia’s advertising landscape has evolved over the past year as key accounts changed hands amid senior management migration and reduced government spending influenced creative agencies’ 2009 turnover and future plans.
The changes come as Lotterywest, one of the state government’s major multi-million dollar accounts, is up for review with tender documents poised to enter the public domain this month.
Arguably, one of the heaviest hit firms in terms of account losses and staff movements over the last 12 to 13 months was the state’s largest advertising agency, Marketforce.
Despite retaining the top spot in WA Business News’ ‘2010 Book Of Lists’ for advertising agencies, albeit with staff levels dropping to 120 from 154 last year, Marketforce chief executive John Driscoll admits 2009 was challenging but not all bad.
“The last 12 months have been tough for everyone in the advertising industry and Marketforce have been very much a part of that,” Mr Driscoll told WA Business News.
“Some of our competitors like to talk it up but the reality is that 2008 was a record year for Marketforce in terms of billings and where our agency sat, and 2009 was not as good as 2008 but it was still our second best year.”
Marketforce lost three key accounts worth millions of dollars to West Perth neighbour, The Brand Agency – City Farmers, GESB and LandCorp – and decided against defending the valuable Tourism WA account (which was awarded to the Sydney-based agency Host last year amid local agency disquiet) which Mr Driscoll puts down to a shift in focus.
“Two of those three (accounts lost to Brand) were government, and our focus has clearly been looking at private enterprise as government has been reducing expenditure while private enterprise has been growing,” he said.
“City Farmers, it’s not a huge account but (we’re) disappointed to lose it.”
Marketforce secured part of Western Power’s account, about half of the Satterley Property Group account (shared with Gatecrasher) and the Summit Homes Group account after losing Dale Alcock Homes.
The state government’s reduced advertising spend has been an issue for many agencies to deal with in 2009 but The Brand Agency’s managing director, Steve Harris said it was long overdue.
“In many cases, that spending is a lot more efficient and it’s a good result for taxpayers as they’re spending it more wisely… but it’s bad for advertising agencies and not great for media agencies,” Mr Harris said.
While Brand lost the $4 million Burswood Entertainment Complex account to Gatecrasher at the very start of 2009 and shed five employees during the year, Mr Harris said the company finished significantly ahead of budget, assisted by walk-up projects which had disappeared early in the year only to return around October.
Agencies across the board are enhancing their digital offerings in line with the sector’s growth and the popularity of social media with 303 managing director Alan Taylor suggesting a good digital team is central to success.
Meerkats creative director Mike Edmonds said recently appointed managing director Gavin Bain’s digital experience will help “create meaningful, consistent digital brand engagements for our clients.”
Mr Bain left Marketforce as client service director in November as did various other staff including director media Mike Mitchell.
A timely appointment considering Mr Bain was also involved with Marketforce’s 17-year relationship with Lotterywest.
The current five-year contract finishes on November 1. Most WA agencies are expected to compete for the lucrative account.
According to Lotterywest's latest annual report, the organisation spent $3.8 million in expenditure with Marketforce and a further $8.2 million with Marketforce's media buying division, Media Decisions/OMD.
