1. THE REVIEW OF GOVERNMENT ADVERTISING Presentation to the media Thursday 19th May 2005 Colm Shannon Deputy Director of Communications Executive Information Service

2. CONTEXT FOR THE REVIEW Improve effectiveness of existing advertising. The need for best VFM and efficiency savings. Changing media market.

3. TERMS OF REFERENCE To examine the business objectives of government advertising and how government currently procures advertising across all media – print, TV, radio, outdoor and the internet. To determine the efficiency and effectiveness of the current approach to advertising, taking account of business needs, target audience, value for money, equality and new opportunities provided by the internet and other new media outlets; and Taking account of these factors recommend the most appropriate option(s) for government to procure its future advertising requirements.

4. THE CHANGING MARKET - LOCAL - 56 local paid for and free newspapers - Belfast Telegraph - News Letter - Irish News - Daily Ireland - Irish Times - Irish Independent - Sunday Tribune - Sunday Business Post - Star - Daily Mirror - Sun - Times - Guardian - Independent - Daily Telegraph - Financial Times Press Titles: - BBC - C4 - C5 - UTV - RTE1 - RTE2 - TV3 - TG4 - Channel 9 - Satellite/cable TV: - Belfast CityBeat - Downtown - Cool FM - Q Network - Mid 106 - BBC - UTV 105 - RTE1 - 2FM - Today FM - RTE Lyric - Radio na Gaelteacht - Ballymena/Newry Radio:

6. GOVERNMENT ADVERTISING EXPENDITURE - Classified/Recruitment Core Departments £1.3m Agencies £2.2m NDPBs £4.4m NIO £0.1m Total £8 m

7. Government Advertising Expenditure Campaign - net media buying Core Departments £1.5m Agencies £6.4m NDPBs £1.2m NIO £0.1m Total £9.2m

8. Campaign Expenditure By Media TV £4.8m Radio £0.6m Newspapers/ Magazines £2.5m Outdoor £0.6m Other £0.7m

9. EMERGING ISSUES Variation in costs and rates secured across government. Significant and accelerating changes in the local market. Historic dependence on public notice advertising – new ways of communication. Different approaches to the management of advertising. The need for improved co-ordination and central planning. The need for communication of best practice across government.

10. EMERGING ISSUES The need for compliance with public procurement regulations. Agreed government measures of effectiveness. The need for more effective targeting in a fragmented media market. Requirement to develop in house specialist skills. Intelligent buyer role. Openness and transparency in costs/charging.

11. THE SCOTTISH EXPERIENCE A strategic communications approach to the management of advertising. The production of an annual marketing programme, which is cross-cutting and focused on the priorities of the Scottish Executive. The use of a single media buying company.

12. REVIEW AREAS Classified advertising. Campaign advertising. Management of advertising.

13. CLASSIFIED ADVERTISNG A centralised arrangement for all classified/recruitment advertising. A government produced free paper (outsourced or internal). Tender for media supplier(s) for all public notice advertising. Switch to the Internet/digital TV.

14. CLASSIFIED ADVERTISING What are we trying to achieve? Government requires: -real competition -value for money -community coverage -maximise new technology.

15. CAMPAIGN ADVERTISING What we are seeking to achieve Campaigns must be communications driven: - Cost effective media planning/buying - Effective targeting - Creative consideration of all media - Creative in design but cost effective in delivery - Objective based with measurable outcomes A corporate government approach to advertising: - Central marketing plan - Agreed audit programme - Central professional support role - Corporate approach to advertising protocol.

16. CAMPAIGN ADVERTISING How are we going to achieve it? Compliance and competitive approach to procurement. Explore the feasibility of a media buying agency. Transparency in costing. Improving the way we work with agencies.

17. MANAGEMENT OF ADVERTISING – A better way of working Advertising as part of a strategic communications package. Skills development programme. Central professional support to promote best practice and advise on policy and procedures, auditing and evaluation of campaigns.

18. SUMMARY Why the need for change? Advertising needs to be communications driven and part of the corporate communications process. Changing market. Government needs to improve effectiveness of advertising. Status quo – in terms of rates, management, evaluation and procurement practices is not sustainable.

19. SUMMARY New approach to classified advertising. New protocol with the advertising industry. Improving our skills base. Corporate approach to communications.

20. WHAT HAPPENS NEXT Consider comments from industry. Draft report presented to Minister end of June. Consultation on draft report and EQIA July – September. Final report in October.

21. QUESTIONS

22. CONTACT DETAILS colm.shannon@ofmdfmni.gov.uk Web address - www.ofmdfmni.gov.uk