Universal bags $56m government account

The shock move shifts upwards of A$100 million (US$56.3 million) in media billings to the rival agency and will see Universal establish an office in Canberra, home to the Federal Government, to handle the business.

Universal McCann took over the assignment at the beginning of this month and will carry the contract for four years before another review is called.

Mitchell and Partners, which has held the account for the past four years, was widely believed to be the favourite on the pitch. However, the agency said that no staff would be retrenched. "We're a very big company with a turnover of $500 milliion with good growth this year with clients like Woolworth's and Red Rooster," a spokesperson said.

Universal McCann Australia managing director James Warburton said the win ended an anxious wait for the agency.

"This appointment sustains our belief that Universal McCann has a unique and sophisticated offering that transcends all media disciplines," Warburton said.

"When it comes to large master media business we do it better than anyone else."

The account is run by the Government Communications Unit, based in Canberra.

The Unit called for a comprehensive tender in July, which was followed by an extensive evaluation process. It is believed up to 10 agencies were invited to tender, although participants' identities remained closely guarded throughout.

Calculations from last year found the Federal Government boasted Australia's largest advertising budget with a spend of A$153 million between January and December.

This placed it well ahead of the nation's second biggest spender, retailer Coles Myer, that committed A$125 million to advertising, followed by telecommunications group Telstra Corp that spent A$103 million.

The media planning and buying for the Government's campaign advertising comprises the lion's share of the Government account at around A$100 million.

A further A$25 million is spent on non-campaign advertising.

This account was recently shifted from Starcom to HMA Blaze, also on a four-year contract. The business includes all classified, recruitment, tender and public announcement advertising.

The remainder of the Government's budget is spent on creative work. This is divided among an extensive and changeable roster of agencies that is believed to include Clemenger BBDO, Brown Melhuish Fishlock and Cummins and Partners.

This side of the business is reviewed on more of an ad hoc basis and work is generally only project-based.