The advertising professionals at Station Square-based Marc USA have apparently done a pretty good job helping Pennsylvania sell lottery tickets the past four years.
State officials yesterday said Marc would keep the account after a review that drew two other competitors interested in the lottery's $32 million annual advertising budget. Marc has been the Pennsylvania Lottery's agency since 2003, when it beat out a Philadelphia agency that held the account for more than two decades.
Secretary of Revenue Thomas W. Wolf said his department would begin negotiations with Marc on a new contract that will go into effect in January. It is expected to be for four years with options for three one-year renewals.
"We are delighted to continue our partnership with the Pennsylvania Lottery and support their efforts to provide revenue for programs and services that benefit older Pennsylvanians," said Michele Fabrizi, Marc USA's president and chief executive officer.
In the fiscal year that ended in June 2006, the lottery reported gross sales exceeded $3 billion, with revenues of more than $970 million.
Agencies that vied for the work had to meet certain qualifications, such as having at least $100 million in billings, as well showing an understanding of what the lottery faces in an era of increasing gambling and entertainment options.
"The challenges we're looking at are keeping lottery games fresh and exciting and new for players," said Cris Stambaugh, spokeswoman with the state Department of Revenue. "Players can get fatigued."
At any given time, the lottery may be running between 45 and 52 games. There are instant games as well as terminal games in which players buy tickets and then wait for a weekly drawing. Three to four new instant games launch every month.
One of Marc's more high-profile contributions has been Gus the Groundhog, an animatronic spokes-animal created to promote scratching off instant tickets. Fans write him letters and even ask for autographs. "Gus is so popular. So he's definitely a keeper for our instant games," said Ms. Stambaugh.
The state's request for proposals also asked agencies to consider the impact of the slots parlors that have begun opening inside the state's borders, even though officials have said they don't see a lot of overlap between the different audiences.
The first time Marc won the lottery account it replaced longtime lottery promoter and Philadelphia agency Tierney Communications. That led to a dispute over how the state handled the bidding process.
Tierney took another shot this time but didn't get the business back. "Certainly, we were disappointed," said Brett Marcy, a spokesman in Tierney's Harrisburg office. "It's a fantastic brand, a fantastic product with a great message."
He said there are no plans to challenge the state's bidding process this time. "We respect the lottery's decision."
Marc employs about 150 in the Pittsburgh area with about 300 companywide. It has offices in several other markets.