Industry misses out on post bonanza

tellsidAgencies and suppliers will get no windfall from marketing activity to support the privatisation of Royal Mail, after the Government confirmed it has ruled out a “Tell Sid”-style public campaign.
There had been hopes that a major push would boost the industry’s coffers. Both the privatisations of BT and British Gas in the Eighties included mass mailing campaigns as well as print-based support materials, such as prospectuses, and gave agencies, data suppliers and printing firms a major financial boost.
The classic British Gas “Tell Sid” campaign (pictured), devised by Y&R, was backed by millions of pounds in spend. Scarcely an ad break on UK television in 1986 passed without the commercial, inviting the public to invest in the soon-to-be-privatised company.
But business minister Michael Fallon said: “We are not planning a massive campaign. ‘Tell Sid’ happened at a time when people didn’t know about privatisations or about British Gas. Royal Mail is a very strong brand that is well known.”
Although the Government will not say so publicly, it does not want millions of small shareholders, instead it is hoping to lure big businesses – along with their deep pockets – to fund future investment in the postal operator.
It is thought marketing activity will be led by banner ads, driving people to a dedicated website where they can buy shares. Citygate Dewe Rogerson has been hired to mount a PR campaign.
However, the DMA believes the sell-off will bring longer term gains to the direct marketing industry.
Chief of operations Mike Lordan said the sale would boost business customers of Royal Mail who would “undoubtedly benefit from increased competition, as well as further investment in the marketing channel”.
He added: “The success of the UK’s multi-billion pound direct mail marketing sector depends on a strong and healthy postal system. Direct mail now represents a significant portion of Royal Mail’s revenues, and this is likely to increase.
“As Royal Mail passes into private ownership, the DMA will continue to maintain a strong working relationship with the organisation to ensure the interests of marketers are represented.”

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