Incumbent M&C Saatchi, Sydney retains Optus business in shoot-out with George Patterson Y&R
Incumbent M&C Saatchi, Sydney has retained the giant $80m Optus business after a shoot-out against George Patterson Y&R Sydney and associated Y&R Brands group of companies.
The business has been with M&C Saatchi since 2003 and was retained in 2008 after a pitch against Clemenger BBDO and McCann.
The reappointment continues a remarkable period of new and retained business for M&C Saatchi highlighted in February when the agency won lead creative duties on Commonwealth Bank, Australia’s largest advertising account. Then it was appointed by Etihad Worldwide, one of the world’s largest and most progressive airlines.
Says M&C Saatchi worldwide chairman Tom Dery (above right): “It is gratifying to have this opportunity to continue our long relationship with Optus”.
“Optus continues to challenge in the dynamic telco industry. An industry that has experienced phenomenal growth and change in the past decade.”
The reappointment follows a watershed year for the agency in 2011 that saw it win $80 million in new revenue billings, adding the likes of Dick Smith, Eftpos, Google, and Lend Lease to its client roster. The previous year it was appointed by David Jones and Masters amid a similar flurry of wins.
“Retaining this account continues a period of sustained growth for the agency that augers very well for the future,” Mr Dery said.
Says Russel Howcroft (above left), CEO Y&R Brands: “The Y&R Brands group of companies, including our overseas partners, delivered an outstanding proposal to Optus.
“We are disappointed that we did not win the mainstream advertising tender. However, Y&R Brands‚ IdeaWorks will continue to provide Optus with ongoing and exceptional service.”
31 Comments
Now that’s winning!
Congratulations to the entire team at M&C Saatchi. Well deserved.
I’ve seen how hard those guys work day in day out, year after year.
Great work guys.
oh yeah.
Never under estimate the power of Tomocracy.
The big question is will they kill the animals?
lets not get carried away here
it was a price driven decision
well done to those agencies who pulled last year when the multiple was industry damaging
god knows where the floor was, considering how desperate wpp was for the business, 1.2 maybe ?
Fuck me, Commbank, Etihad now Optus with the bonus of Woolies offloaded. Not a bad start to the year!
Never underestimate how low those pants can drop.
It appears reports of M&C Saatchi’s demise were greatly exaggerated.
The two Tom’s do it again. Have to give it to them, true legends of the industry. The test of time.
At what cost? Congrats must go to the agencies that told them to stick it for their attempt at getting work done for next to nothing, agencies that continue to take on work on the cheap will be the downfall of this industry!
Yes, tremendous indeed.
The rumour was that Patts were willing to work on it for 12 month free of charge?
They couldn’t beat M&C even by giving it away…
Think of them what you will but those crafty old Toms do know how to mix it with the big boys at the big end of town.
the real winner was Optus Procurement.
M&C Slashi
Cheap Cheap – you are a moron….
What precisely IS Y&R Brands? Whatever it is its not really working I’d say.
So M&C replaces the 4th biggest bank with the biggest bank. Loses Qantas and picks up the much bigger Etihad and hangs on to Optus. Crack open the shampoo.
Great job everyone at M&C, to retain a client of that size, after already having the account for so long is a remarkable effort. A change of leadership is probably in the wind for Y&R brands (wtf is that ?) given the massive cost and coming up short on this, musical chairs to little effect in the group, very unhappy staff, big clients leaving, and a truck load of other dramas…
Well done M&C. Excellent Friday news.
Oh to be at The Tilbury tonight…
@ Cheap cheap, if Patts were willing to give it away imagine what M&C did to keep it.
Aouchhh now that’s price cutting.
Here’s a thought. Maybe M&C won it by working every weekend for months, through the night most nights and producing fucking good work.
So stick the ‘pants down’ comments up your arse.
They’re baseless, libelous and an insult to one of the toughest agencies to pitch against in the country.
A certain massive global conglomerate offering to grab the account for fucking nothing speaks volumes about what they were up against.
Well said “Ex M&C”.
So there we have it full time with the final score:
M&C WON
Cynics NOTHING
Uncanny how M&C do everything for next to nothing yet they occupy the most beautiful agency premises in Sydney (a city not generally associated with reasonable lease arrangements) on Australia’s most prestigious street.
They manage to pay in excess of 350 people week in, week out, provide free booze and coffee every day from an inhouse cafe run by a fulltime head chef.
From what I can gather the Toms seem to enjoy an enviable lifestyle.
Wonder how the fuck they do it?
According to previously published figures from the Optus pitch doc, Optus pay 1.4 x salaries. That means M&C isn’t losing a cent – they’re making money – maybe not heaps – but they’re still ahead. Add production etc., etc., etc., and they’re further ahead. Well done Tom Toms. You win again!!!!!!
Well done to Dave, Ben, Chook, the Toms and every other bugger who has worked tirelessly for over a year to keep this. Proud to work with you.
Nice comment Onelastword.
Sparks got to fly.Useless.
Well done team m & c.
M&C’d, sorry to burst the bubble but agencies don’t make a cent on a multiple like 1.4, particularly with having overheads like the aforementioned expensive offices, free coffee and booze and a head chef (etc. etc.).
Not knocking M&C at all, is often tougher to retain business than it can be to win it, but the only winner here is Optus (especially the procurement guys).
This is just another example of the death spiral of the ad industry with a further demonstration of the little value that corporates place on creative product and how they think it can lumped in with all of the other commoditised services that they drive into the ground to ensure that their shareholders get nice healthy dividends.
What half of the bloggers here forget is that Advertising is a business.
The idea is to win business, grow business, keep business and sell products – that’s all.
Whilst good, Award shows are set up to make money off our egos and make money they do, again another business.
The ideas are important yes, but selling out, we sell so we’ve already sold out. It’s business, not art, so grow up, realise that and you might just get somewhere in this industry…
No-Ideaworks started going down the toilet when new management arrived with a shite attitude to staff – not to mention the replacements who took over from a team of successful practitioners… and the sincere lack of strategic depth of field (will they keep backing the same horse?)…. You get what you deserve… but who will suffer for this cock-up yet again? Rhetorical…
After two years NY is losing patience with GPY&R management…….