POSTAL SERVICE LOOKS TO CONSOLIDATE ACCOUNTS

The U.S. Postal Service, Washington, DC, last Thursday initiated a review that will seek to consolidate all advertising and marketing services work at a single agency.

Consolidated duties include strategy, creative and production, media planning and buying, direct marketing and sales support, and retail display work. The 2001 budget for those activities was $104 million.

USPS is now looking for one shop “that will foster consistency and efficiency in our advertising program while realizing significant cost savings,” per its prequalification notice. It will also “implement a performance-based compensation program based upon quantifiable, measurable performance indicators.”

Since a September 2000 reassignment, Leo Burnett has handled advertising, FCB Worldwide direct marketing and interactive, Grey Global Group media, and Frankel retail.

The Postal Service expects to complete the review in June, awarding a one-year contract with options for five additional years. The review does not include USPS’s ethnic marketing accounts, which are handled by specialist agencies.

A Frankel spokesperson said the agency plans to vigorously pursue the account.