Marketing News Update in California: California Lottery Changing Hands, Fors Marsh Acquires BARU Advertising

California's marketing and communications market continues to attract significant attention—from major agency reviews to new entrants seeking a foothold in the state. Two recent developments caught our attention because they may say as much about where the market is heading as they do about the individual organizations involved.

California Lottery Appears Poised to Select BSSP

Independent agency Butler, Shine, Stern & Partners (BSSP) is expected to emerge as the winner of the California Lottery's Creative Agency of Record competition. While an official announcement is still pending, we expect news in the coming weeks. The decision would mark the end of a long and successful run for incumbent David&Goliath, which has stewarded the account for more than a decade and helped establish the Lottery as one of the most recognized public sector marketing programs in the country.

The procurement reportedly attracted dozens of responses and was ultimately narrowed through chemistry checks and presentations to a small group of finalists that included both major holding companies and independent agencies. At an estimated value approaching $400 million over the life of the contract, the Lottery remains one of the most coveted marketing accounts in state government. 

Fors Marsh Acquires BARÚ Advertising

Another development worth watching is Fors Marsh's acquisition of BARÚ Advertising. Fors Marsh has established itself as one of the leading public sector communications and research firms in the country, with deep expertise in behavioral science, military recruiting, public health, and government communications. The firm has consistently ranked among the top performers in the federal marketing and communications market.

The acquisition reflects the strategic value that national firms increasingly place on California market expertise, relationships, reputation, and local presence. California remains one of the largest and most competitive public sector communications markets in the country. Building credibility, relationships, and past performance can take years. As advisors on the transaction, we believe it reflects a broader trend: California is increasingly attracting attention from firms looking to diversify beyond federal opportunities and establish a stronger foothold in state and local government.