• on Jul 29th, 2013 in Products & Services | 9 comments

    The U.S. Postal Service uses a variety of strategies and media – including direct mail, television, radio, and sponsorships – to advertise, market, and promote its products and services. These efforts also help to build brand awareness for the Postal Service. Some campaigns have succeeded, such as the Priority Mail Flat Rate box campaign, “If it fits, it ships®.” Other efforts have been less successful.

    Over the years, the Postal Service has faced an advertising conundrum. Some have complained that a government monopoly shouldn’t be spending money to advertise. Others have grumbled that the Postal Service isn’t doing enough to promote its products and services, particularly compared to its competitors. Certainly, the Postal Service’s current financial condition restricts its advertising budget. Then, there have been concerns about how well the Postal Service has managed and monitored advertising contracts, which one of our audit reports documented earlier this year. The Postal Service took corrective actions and has new contracts in place.

    Undoubtedly, we live in an age of competitive advertising. Every product the Postal Service has faces competition, even the monopoly products. The Postal Service needs to use advertising to promote its products, services, and the brand itself. The question might be: What is the most effective way for the Postal Service to advertise? Should campaigns focus on traditional media, or focus on new media, like Facebook, Twitter, and YouTube?

    The Postal Service’s upcoming launch of an ad campaign might provide insights on the best possible strategy. It plans to kick off a nationwide multi-channel advertising campaign in August to promote its Priority Mail changes, which include a “simplification” of Priority Mail services and a name change for Express Mail. For some customers, the new longer name of Priority Mail Express, and the revised Priority Mail service offerings of 1-, 2- or 3-days might actually seem more complicated than simplified. A successful advertising campaign would reduce that confusion.

    Share your thoughts on the Postal Service’s advertising strategy and its recent campaigns. How effective have they been? What changes would you like to see?

  • on Nov 19th, 2012 in Ideas Worth Exploring | 5 comments
    Twenty years ago, when professional sporting teams started selling naming rights to their stadiums and arenas, many purists called it a low point in the commercialization of sports. But today, the number of arenas and ballparks not named after a corporate sponsor is small. For revenue-seeking team owners, it is just too hard to pass up the money that comes with selling your stadiums’ name. Strategy, business development and marketing all play huge factors in naming-rights deals, with top prices for these deals reaching about half a billion dollars, according to Sports Business Journal. As a business-centered organization looking to boost revenues, does the U.S. Postal Service have opportunities to sell naming rights? The idea of selling the naming rights to an entire Post Office might not be palatable to Congress, as lawmakers like to name post offices after fallen soldiers or local heroes. But what about selling space in parts of the Post Office? For example: this retail counter brought to you by XYZ Co.? Sides of vehicles or automated postal centers in high-traffic areas of retail centers could also hold valuable advertising space. With its national reach, yet local presence, the Postal Service is visible in every community nearly every day. Companies and nonprofit organizations would likely find the opportunities to reach such a large audience appealing. Another option might be to appropriate advertising space to other government agencies. For example, a state health department or the Centers for Disease Control and Prevention could use space on postal vehicles or in retail lobbies to announce a public health campaign. The Department of Energy or local governments could use retail space to tout energy conservation practices to citizens. This approach would also tie in with a larger vision of using post offices to connect citizens with other government services. Would such offerings tarnish the Postal Service’s image and degrade what is still considered a public institution held in the public trust? Or should the Postal Service think creatively about new ways to use its large physical network? Would naming rights be an easy way to generate revenue in tough economic times? Or should the Postal Service focus on its core business?
  • on Jun 4th, 2012 in Products & Services | 14 comments
    Following the success of the Priority Mail ® Flat Rate Box® advertising campaign, the U.S. Postal Service has decided to use the “If it fits, it ships” letter carrier (actor and comedian Mike Bradecich) as the public face for one of its newest products, Every Door Direct Mail (EDDM). The campaign’s new tag line, “Every home, every address, every time” describes the new product’s main advantage: small businesses can target every address in their local area without having to provide every name and address. EDDM is a different product than the Flat Rate Box because it’s geared toward small business customers. The Flat Rate Box is intended for both individuals and businesses. One of the new television commercials points out the value of direct mail for small businesses over other types of advertising options like billboards. This message is intended to appeal to local businesses, like restaurants and doctor’s offices, which may not advertise much to begin with and face tough decisions about where to put their limited advertising dollars. It remains to be seen whether a mass media advertising campaign is the best way to bring these small businesses into direct mail, even if supplemented with direct mail and online advertising. Check out two of the new television advertisements: Official USPS Chicken Commercial Official USPS Billboard Commercial The main message in the campaign is simplicity. Businesses no longer need mailing lists, and they can drop off their mail (up to 5,000 pieces) at their local post office instead of Business Mail Entry Units. Given the smaller audience and the larger cost for this product, it remains to be seen if EDDM will be as well received as Priority Mail, but the Postal Service appears to believe this product has potential. Revenues for EDDM since April 2011 (when the product was introduced) have grown rapidly and could increase as the economy continues to improve. The advertisements began running in April on TV and the campaign will include print, radio, and direct mail. So, tell us what you think about this new advertising campaign. Have you seen the new advertisements? How do you think this advertising campaign compares to the Priority Mail campaign? Does it do a good job of addressing the needs of small businesses?

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