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DDB finally gets its prize - wins lead agency in Auckland Council pitch

Campbell Gibson
Wed, 24 Sep 2014

Two of the winners have been announced in Auckland Council advertising and communications pitch though more announcements are to come.

DDB has been announced as the lead agency, winning the creative slice of the pie and has partnered with fellow Omnicom company Spark PHD to manage the media chunk.

The final stages of the five-month pitch process involved a battle between DDB and .99.

But there are still at least two more agencies to be announced for the digital account and arts and culture account, with a final announcement expected in early 2015.

DDB chief executive Justin Mowday says that, as an Auckland agency, this is a chance for DDB to help “shape our city.”

“We wanted to work with the council across the board … but every agency would prefer to be the lead agency and that’s the role we’ve been described in. It allows us to work with the other agencies in partnership but have a strategic lead role across Auckland Council,” Mr Mowday says.

DDB, among other agencies, unsuccessfully pitched for the account in 2011; losing to long-time incumbent Ogilvy & Mather, which has held the account since 2007.

Moreover, its director, Paul Manning, had worked on the council accounts (before the super city) for 14 years and brought them with him to Ogilvy after it absorbed his company, Metromedia.

It is a sweet and sour win for DDB. The council recently underwent significant cost cuts, announcing a staff cull and reduction in its advertising, media and communications budget from $12.7 million to $8.4 million last month.

Cost savings include reducing fulltime staff from 130 to 92, resulting in a saving of $1.8 million. The 130 staff were appointed after amalgamation of the former seven councils into Auckland Council.

A new in-house design studio has been constructed and is said to save $1.4 million.

The budget cuts are part of the council’s plan to secure savings of $240 million a year for the next 10 years.

A senior ad agency source told NBR last week that Mr Manning and Ogilvy breathed a sigh of relief after being dropped from the pitch because of the budget cuts and bureaucracy associated with the account.

However, Mr Mowday says he accepts and understands why cuts were made.

“As a ratepayer myself I think it’s great the council has a prudent and economically sound plan forward," he says.

The expression of interest documents state the council wants to appoint agencies for two years, with two one-year renewal options at the council’s sole discretion.

Auckland councillor Cameron Brewer has welcomed cuts to the marketing budget.

“This whole area needs to be reined in as it is costing ratepayers tens of millions of dollars each year. Hopefully, this RFP process will result in less cost for ratepayers, as it is well overdue.

“It’s a very soft organisational overhead that desperately needs the pruning sheers. These are the kinds of things we need to be hitting, not local board projects and service levels of our parks,” Mr Brewer says.

What happened in the 2011 pitch?
The 2011 pitch was fraught with controversy, with cries of a long and biased decision-making process, with agencies having to undertake 11 tasks.

Agencies involved in the pitch were Ogilvy, DDB, FCB and a joint effort between Colenso BBDO and .99.

FCB pulled out in the early stages, citing a heavy workload but insiders on the deal said the agency saw the account would inevitably go to Ogilvy.

Documents released via the Official Information Act reveal that there was a declared conflict of interest and employment dispute from a member of the panel.

The details of the person were withheld.

Campbell Gibson
Wed, 24 Sep 2014
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DDB finally gets its prize - wins lead agency in Auckland Council pitch
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