MAC announcement unsettling for local communications industry.
The recent announcement by the South Australian Government to shut down the Motor Accident Commission is of concern to the AADC and the local creative communications industry.
While assurances that “…the budget for advertising, research, partnerships and sponsorships functions… will be maintained at its existing levels to June 2020” there is no information how or who will be responsible for that spend or how it will be administered.
Also, given there is no indication of what will happen to those activities and associated budgets when June 2020 rolls around, this is a worrying announcement, not just for the incumbent advertising agencies, but for everyone impacted.
This isn’t just two or three companies potentially affected. There are recording studios and production companies, actors, casting agents, photographers, public relations companies, media organisations, many more businesses and of course, the marketing professionals at the Motor Accident Commission.
South Australian companies have worked closely with the marketing team at MAC for many years to deliver some of the nation’s most powerful and effective campaigns that have been proven to change driver behaviour and lower the road toll.
This announcement puts a cloud of uncertainty over millions of dollars in revenue for the communications sector, puts a question mark over the opportunity for local companies to continue creating world-class, highly effective campaigns and does little for business confidence or employment prospects.