DfT entente may cut COI role to ‘centralised negotiator’

The entente-cordiale between the COI and the Department for Transport, announced last week, threatens to reduce the Whitehall advertising body’s role to centralised advertising negotiations, according to informed sources.

The DfT, which rebelled against using the COI to handle its advertising five years ago, has agreed to start accessing the COI’s creative agency framework but on its “own terms.”

Unlike other COI-Departmental-Agency relationships, the terms agreed by the DfT with the COI will mean that the DfT will continue to liaise directly with creative agencies to develop campaigns without any COI involvement. The COI will only reassume its position as the provider of the “central framework” with all the DfT’s roster agencies working under COI contracts. DfT’s roster agencies – Abbott Mead Vickers.BBDO, Leo Burnett Rainey Kelly Campbell Roalfe/Y&R – also happen to be COI roster agencies. The only exception is Euro RSCG London, which creates work for Transport Direct, due to come up for pitch in the next fiscal year.

The new arrangement will mean that the DfT will not pay the 15% commission paid by the other departments that use COI’s framework. It has instead negotiated a “very small fixed fee” to be paid to the COI.

Insiders say that the move is likely to prompt other major departments such as the Department of Health and the Home Office – both of which have sizeable advertising budgets and have in the past mooted the idea of bypassing the COI – to use their own marketing and advertising expertise.

Chief executive Alan Bishop spearheaded the reconciliation with the DfT.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here