Royal Mail Slims Marketing Budget by £30m, Trims Agencies

19 February 2003

The latest chill of Leighton-inspired realism has hit Britain's £1-million-a-day lossmaking Royal Mail Group, which is poised to slash its hitherto sacrosanct marketing budget. According to a statement issued Tuesday, the postal operator’s current £80m annual marketing spend will be cut to between £60m-£50m.

Also up against the wall are RMG’s forty-six advertising and marketing agencies – a “significant” number of which are likely to be dropped. Only the media planning and buying business, held by Carat, is exempt from the review – although Royal Mail siblings Parcelforce Worldwide and the Post Office retail business are not affected.

Says RMG marketing director Paul Rich: “In an increasingly competitive marketplace, we need to focus on how we reach customers in our core markets and we need world-class agencies to support us. The aim of this review is to simplify the agency management process, deliver better value for money and increase the effectiveness across all marketing disciplines.”

Incumbent shops have already been informed and the official tender notice published will be published shortly in the Official journal and on Royal Mail's website at The deadline for applications from interested agencies is March 7.

Data sourced from: BrandRepublic (UK); additional content by WARC staff