Amtrak hires Mekanism—behind the RFP

Amtrak has chosen Mekanism as its lead creative and strategy agency following a review that began in June, Ad Age has learned. In an RFP obtained by Ad Age, Amtrak called the need to attract more new customers “greater than ever before.” WPP’s VMLY&R, which had the account since 2018, participated in the review, a spokeswoman for the agency confirmed. Omnicom Group’s DDB is believed to have participated, according to a person close to the situation. DDB didn’t respond to requests for comment. Also as part of the review, WPP’s EssenceMediacom retained Amtrak’s media business and independent shop Culture One World retained its cross-cultural account. The assignment for winning agencies is a three-year contract, with the option for two additional one-year contract extensions. Check out the latest Ad Age events and award programs Mekanism, EssenceMediacom and Culture One World weren’t immediately available for comment. Amtrak wasn’t immediately available for comment. Amtrak spent $32.2 million on U.S. measured media in 2022, according to Vivvix, including paid social data from Pathmatics, and $20 million in the first half of 2023. The passenger rail system operates in 46 states, the District of Columbia and three Canadian provinces. Acela marketing assignment According to the RFP obtained by Ad Age, most of the work is expected to be digital and social media-focused with the intent to increase ridership 30% by the end of 2024. This will include national and geo-targeted campaigns based on region and train lines, along with the promotion of Amtrak’s loyalty program with around two to four “flash sales and promotional product and/or fare campaigns,” per quarter, it said. One major focus of the RFP was centered around Amtrak’s Acela Express train line, which launched in 2000 and is its flagship East Coast line. The current Acela train fleet was originally supposed to be switched out for a new fleet of high-speed trains in 2021, but the dates have been delayed to 2024. The RFP gave agencies an assignment to come up with a response related to the promotion of its Acela Express train line. This included a two-phase approach, with the first phase focused on creating the advertising for the train line by the end of 2023 and advertising work being launched in 2024 as part of the second phase. The fleets will be released gradually throughout next year. “The strategy may include the paid media and creative approach, experiential/promotional initiatives and partnerships. PR considerations may be included as well; however, the scope of this contract does not include PR support as Amtrak has a contract with another firm to perform work in this area,” Amtrak wrote in its RFP. The pandemic has caused a shift in the types of riders that use Amtrak, according to the RFP. Before the pandemic began, Acela ridership was made up of 60% business travelers and 40% leisure travelers, the RFP stated. Now, it is nearly the opposite—business travelers make up 38% of Acela ridership, and leisure travelers 62%. “This shift placed Acela in competition not only with airline shuttles but personal vehicles, and even other Amtrak products, with 52% of Acela’s customer base also traveling on other Amtrak routes. The strategy must reflect the change in customer base while also supporting possible ongoing shifts in types of travel, purpose of travel, and demographics. It should position Acela as Amtrak’s premier product while remaining approachable for the leisure travel audience,” Amtrak wrote in its RFP. “The diminution of business travel has created a unique opportunity to bring in more new customers, but those customers, many of whom as noted previously are leisure travelers, are more price sensitive, and do not travel as frequently as business travel loyalists,” the RFP continued. “Prior to the pandemic, 54% of Acela customers took three or more trips on Acela annually; today only 17% of customers take more than three trips annually.” The RFP also explained some of the new fleet’s enhancements including new trains with 25% more seats, a top speed of 160 MPH, which is 10 MPH more than the current fleet, and at least a 20% reduction in energy consumption. There will be 28 trainsets, which is 20 more than the existing fleet. Ad Age A-List & Creativity Awards Final deadline approaching for annual program Enter here Last week, Amtrak launched a new fare model that is meant to give people the chance to book cheaper tickets. While there were previously three types of ticket options now there are two. The fully refundable “Flex” option gives travelers the chance to change their travel without fees and the lower-priced “Value” option is less flexible and offers travelers a 75% refund if travel is canceled. Travel experience Amtrak is a significant win for Mekanism, which last year was acquired by Quebec-based holding company Plus Company as part of its plan to expand into the U.S. Shortly after, Plus Company merged Eleven with Mekanism. Plus Company agencies aren’t strangers to travel accounts. Mekanism has worked with Alaska Airlines since 2016 and Plus Company’s Canadian agency Cossette also works with Canadian train company Via Rail. In September, Mekanism acquired Madrid-based digital design studio Zapiens. Also last month, Plus Company launched its AIOS predictive intelligence tool, which is meant to better understand the success of campaigns and the customers it targets.

Amtrak hires Mekanism—behind the RFP

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