State-owned enterprise NZ Post and its subsidiary Kiwibank are combining forces to maximise their media buying power.
The two are holding a dual pitch for media services, putting current agencies on notice.
While Kiwibank had appointed STW-owned Ikon five years ago, late last year Ikon’s senior leadership left to create a new agency called The Family. NZ Post’s current media provider is Starcom.
Kiwibank head of marketing communications and content Regan Savage says the intention is to have one media agency for both brands.
However, the scope of the pitch includes social media, search engine marketing and content marketing for which further agencies could be appointed.
Tender documents state the chosen agency must have a Wellington presence and the brands want to sign a media agency by July this year, for a three-year term.
Mr Savage says while it has not been done in the past for media, it is not unheard of for the brands to share an agency, as they have both used Designworks in the past.
Kiwibank’s creative relationship with Assignment, formed early last year without a pitch, remains in place, as does NZ Post’s partnership with Clemenger BBDO.
What the brands spend on ads
Kiwibank does more advertising than NZ Post but has a smaller media budget than other banks.
According to tender documents it spends between $3.8 million and $4.5 million on booking ad space each year. It runs about 20 campaigns each year, with two of them having a media spend of than half a million dollars.
On top of this it has an annual search engine-marketing budget of $600,000.
In contrast, NZ Post spends between $1million and $2 million on media a year.
However, tender documents state it is expecting to increase its media spend in coming years, around specific brand or product launches.