• 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 5th, 2012 in Products & Services | 9 comments
    As one of the most hotly contested election campaigns in years comes to a close tomorrow, the media is filled with campaign ads. Whether in the morning newspaper, through social media websites, or during commercial breaks on television, we hear constantly about various candidates and ballot referenda. The mailbox is no exception -- direct mail continues to be a widely used political advertising strategy. Recent reports indicate that nearly 2 billion pieces of political mail have been sent this election cycle, and the Postal Service projects it will earn nearly $400 million in revenue from this volume.   If you live in a swing state, such as Colorado, Ohio, or Virginia, your mailbox might have been full of political campaign mail all year long. In these battleground states, no single candidate or party has overwhelming support in securing that state's Electoral College votes.  Political campaign mail is a targeted and cost-effective way for the candidates to get their message to their intended audience. If you live in an area with hotly contested state or local elections, you've probably received a great deal of mail from their respective campaigns as well.  The boost in political mail volumes is a testament to the power of direct mail. More dollars may be spent on television advertising, but the ability of mail to pinpoint a message to voters at a reasonable price is especially attractive to candidates and the national parties. However, using this method too much can backfire. Voters report that the barrage of mail prompts them to tune out the message altogether. They throw away or recycle the mail without even opening the piece. Did you find the mailings effective? Did they help to inform your views of a candidate or a voter proposition? Or did the increased amount of political mail cause you to tune out the message? What advantages and disadvantages do you see over newspaper, television, or Internet advertising? Let us know what you think.
  • 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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