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Carat strike gold with £550 million Government account

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The Dentsu Aegis Network's Carat agency has officially snatched the £550 million UK Government buying account from GroupM, the media-buying division of WPP, after GroupM filed a claim at the high court in London to challenge the decision. The contract, which was won in a review run by the Crown Commercial Service back in September, but was delayed following WPP's appeal, will take effect immediately, with the business handling media buying for all Government departments (including the Army) for at least the next four years. The pitch was a collaborative effort, with the team made up of not only Carat employees, but players from “across the entire Dentsu Aegis Network (DAN) UK offering.”

The contract was won in a review run by the Crown Commercial Service back in September, but was delayed following and appeal by WPP

WPP said in a statement that they were “Disappointed” by the decision, and “Maintain that there have been several errors to the process,” and strongly believe Carat's appointment “Does not deliver the best deal for UK taxpayers.” Alex Aiken, the executive director of government communications, disagrees, and believes the success of their campaigns will “Depend strongly on the competitive rates achieved” under the deal with Carat, a deal which is expected to save taxpayers over £100 million over the next four years thanks to “A combination of tighter spending controls across public sector campaigning and smarter purchasing.”

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Left: Alex Aiken, Right: Matthew Hook

Alex Aiken, executive director of government communications, believes the success of their campaigns will “Depend strongly on the competitive rates achieved” under the Carat deal

In its judgement, the high court said the claim made by GroupM was based primarily on the assertion that as it's the largest media buyer in the UK (accounting for around a third of the £9 billion that's spent on media in the UK each year), it can obtain advertising space at lower prices than Carat. GroupM's argument that Carat could not sustain the prices they were offering appeared to fall on deaf ears though. If anyone has any ideas about how exactly Carat will manage to pull this off, please sound off in the comments below.

Carat MD Matthew Hook believes they will deliver “Some of the most important social outcomes in UK marketing.”

Matthew Hook, managing director at Carat, said the 7-month effort to secure the contract touched every part of their media operation, “From digital performance, to trading, implementation planning and legal services.” He believes the win in a symbol of their “Unique ability to collaborate as an organisation,” and they “Look forward to driving this forward to create a great partnership with the government that delivers business value for everyone.” He believes they will deliver “Some of the most important social outcomes in UK marketing,” and that the government will “Benefit strongly from a more innovative approach to media deployment that delivers value for the UK taxpayer by unlocking the opportunities of a convergent media landscape.”

If anyone has any ideas about how exactly Carat will manage to pull this off, please sound off in the comments below

Matthew Platts, the president of Amplifi UK, the media investment arm of the DAN, said, “This is an outstanding result and one that couldn't have been achieved without the support of the entire Dentsu Aegis Network in the UK.” He feels it is “An opportunity to do some great work that delivers important outcomes for the country,” and adds that it is “A privilege to be the group with that responsibility.”

Benjamin Hiorns is a freelance writer and musician from Kidderminster in the UK.

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