Interpublic Group’s McCann Erickson confirmed today that it has been selected as the U.S. Postal Service’s agency of record for creative and
strategic duties after a formal review.
Sources said that eight agencies contended for the business; WPP’s JWT and Grey made it to the final round. Other finalists were not immediately identified. The incumbent was IPG’s Campbell Ewald. CE’s contract expired last fall and the shop did not participate in the review.
USPS spent $80 million on ads in 2012 -- down from nearly $100 million in 2011, according to Kantar. In the coming year, it is estimated the client will spend between $75 million and $95 million on ads.
USPS has struggled financially in recent years in the face of increased competition from private-sector shipping services and consumer preference for email. In its fiscal year 2012, it reported losing $15.9 billion, blaming much of the loss on a government requirement that it set aside billions to fund future health benefits for retirees.
It has indicated plans to eliminate thousands of jobs over the next several years, and attempted to cut Saturday service earlier this year, but Congress would not allow it.
The McCann Erickson win further consolidates USPS marketing services contracts within McCann Worldgroup. The latest win also includes Worldgroup digital and direct marketing shop MRM. Separately, the client has existing contracts with Worldgroup agencies UM (media) and Weber Shandwick (PR).
Harris Diamond, CEO of McCann Worldgroup, stated: “The Postal Service is as iconic a brand as any in our portfolio, and plays a huge role in our business and personal lives. We are passionate about supporting its mission and helping it to grow revenue.”
A USPS rep did not respond to a query for comment.