Government spending millions on public relations during supposed austerity

Although Estonia's government is officially on a cost-cutting track, a very different picture emerges when looking at state agencies' communications contracts over the past six months.
Estonia's economy has been in decline for a long time and the government's stated goal has been to cut spending and save money. However, a look at the public procurement register suggests that this drive for austerity does not extend to public relations.
It is hard to find a state agency that does not employ public relations staff, and in many agencies, there are entire departments dedicated to the task. Alongside these in-house resources, agencies are also outsourcing PR services through tenders, often with budgets in the hundreds of thousands, and in some cases, millions of euros.
For example, the National Institute for Health Development (TAI) is currently running a tender to find a partner to develop and implement communications activities and creative solutions. The estimated value of the contract is €1.5 million and its purpose is to communicate and market health-related messages, including the country's official dietary guidelines.
The winner of the contract is expected to help TAI shape public attitudes, knowledge and behavior in ways that value health. This includes developing creative concepts, drafting media plans, producing informational materials, advising TAI on brand language and engaging content creators, placing opinion pieces in the media and more. The partner must also be ready to assist with crisis communications if needed.
According to TAI's website, the institute already has a communications center with six employees.
TAI's head of science communication, Liis Reiter, told ERR that this is a framework procurement, with €1.5 million serving as the upper limit for the entire contract period. The tender seeks partners for the next three to four years.
"The actual cost will depend on the specific work we order and the budget allocated for it. The framework agreement does not obligate us to spend that amount and we follow the basic principles of public procurement, including the efficient use of public funds," Reiter said.
She explained that the goal of the tender is to ensure TAI has quick access to professional support for large-scale and varied communications work, such as running public health campaigns and creating creative solutions.
"Our aim is to provide science-based information and solutions that help people make healthier choices, prevent health problems and improve well-being. TAI has its own communications and marketing team, but for larger projects or tasks requiring special expertise, such as public awareness campaigns, we need extra capacity and skills," Reiter said, defending the need for the procurement.
The framework agreement will run for three to four years, with specific work commissioned through mini-competitions. Reiter noted that TAI's communications needs and capabilities may change over time, so they are looking for partners who can respond flexibly to all potential needs.
"The main expectation is that partners will help TAI communicate health-related messages, such as those linked to the national dietary guidelines and drug prevention, and carry out other communications and health marketing activities necessary to meet national public health goals," she added.
Municipalities looking for climate matters PR partner
The Lääne-Harju municipal government launched a tender last week seeking a communications service provider to enhance and promote the climate and energy plans of Lääne-Harju, Saku and Kiili municipalities. All three already have communications specialists on staff.
The goal is to find a communications expert who can raise public awareness of energy and climate issues and provide both strategic and practical support through the end of September next year.
According to the tender description, each municipality already has a climate and energy plan, but previous outreach has not been effective: events organized by the municipalities have attracted few participants, leading to the conclusion that information is not reaching residents or failing to engage them sufficiently.
The municipalities therefore expect the winning bidder to map out existing communications shortcomings and set marketing goals. The partner must also create a visual and verbal identity for the climate and energy plans of Lääne-Harju, Saku and Kiili, including a logo, visual elements and slogans.
A recent procurement by the Education and Youth Board (Harno), which already has a dedicated communications and marketing unit, sought a marketing and communications partner for the Just Transition Fund. Seven companies submitted bids, which are still being evaluated, but the estimated contract value is €59,000.
The winning bidder will be tasked with creating a positive and coherent communications environment for the fund, explaining its goals, developing a forward-looking new identity for Ida-Viru County, alleviating fears and building trust.
The tender description also lists focus themes and overarching messages, such as "This is my future" for youth and education and "Ida-Viru County is the driver of smart industry development" for industrial and economic restructuring.
Successful communications should create an inspiring new narrative for Ida-Viru County's future, with campaigns centered on relatable, personal stories, such as those of people who have retrained, received support or started new businesses.
A public relations professional who spoke to ERR expressed surprise that such procurements are taking place at a time when the economy has been in decline for four years in a row and the state is supposedly pursuing austerity.
"In the first half of this year, we saw a kind of tender race I haven't seen in ten years," the PR professional said.
He did not wish to speak on the record, noting that he sometimes takes part in such tenders himself. From a business standpoint, he admitted, it is encouraging to see potential work when the private sector is struggling, but as a citizen, the situation infuriates him.
Health Insurance Fund needs help education people
Large-scale tenders can be found in the public procurement register well beyond these examples. Several this year have come from the Health Insurance Fund, which has been under heightened scrutiny this month for organizing costly summer retreats. According to its website, the fund's public relations department has 16 employees.
Just before Midsummer, the Health Insurance Fund closed a tender for a partner to provide creative solutions and communications services for cancer screening awareness campaigns. The contract is worth €600,000 and the winner has yet to be determined. The selected partner will be responsible not only for developing and implementing creative advertising concepts but also for drafting a communications strategy, managing campaign projects, handling design and copywriting and arranging necessary subcontracting.
Earlier this year, the fund also ran a tender for a creative concept and communications strategy for the "Own Your Health" campaign, as well as its implementation. That tender was won by Akkadian and Taifuun, with a contract value of nearly €100,000 excluding VAT.
According to the project brief, the campaign addresses the problem of low health literacy among Estonians, with many people unsure where to turn with health concerns, leading some to visit the ER unnecessarily. The campaign aims to give clear guidance to those seeking help from the wrong sources, raise awareness that people themselves must take charge of their health and normalize the idea that not every health issue requires immediate medical attention. It also seeks to highlight the availability of e-health services.
The Estonian Business and Innovation Agency (EIS) has also run several communications tenders. One currently underway is to find a PR provider for its tourism department for 2025–2028, with an estimated value of €2 million. The winning bidder will be expected to assess Estonia's positioning in target markets, prepare and implement a communications plan, engage with the media, generate journalistic coverage, organize events, provide spokespeople and arrange press trips. The first task under the framework agreement will be a press trip for German travel media focusing on sustainable tourism and unique winter nature experiences in Estonia.
At the start of the year, the Ministry of Education and Research, which also has its own communications department, launched a tender to find a partner to promote the transition to Estonian-language education. This was won by OÜ Hamburg ja Partnerid, with a contract worth €50,000.
In June, the Government Office sought partners for creative and media services to design communications concepts supporting social cohesion and integration, produce the necessary materials and prepare and carry out media plans for campaigns. The EU-funded contract was worth €400,000, with four bidders participating. The winner has yet to be announced.
The Rescue Board signed a €308,000 contract this year with Akkadian and Inspired Universal McCann to run two media campaigns. One is intended to raise awareness about the dangers of lithium-ion batteries and charging devices, without using scolding or fear tactics, while the other aims to improve crisis preparedness and public knowledge about when to take shelter from threats and how to prepare for such situations.
The public relations professional who spoke to ERR said the sums involved in these contracts are shockingly large, with no sign of austerity in sight.
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Editor: Marcus Turovski










