Advertising mail at record levels (U.S)
New figures from advertising authority Robert Coen show that advertisers used mail at record levels in 2007.
Mail spending rose 4.0 percent in 2007 to USD 60.998 billion, according to Coen, senior vice president, director of forecasting with Universal McCann, one of the largest advertising agencies in the world,
In the December 2007 issue of his “Insider’s Report,” Coen said that advertisers spent USD 283.88 billion on all media in 2007, a .07 percent increase over 2006. In effect, mail continues to represent one of every five dollars spent by U.S. advertisers.
Coen said Internet advertising increased 20 percent in 2007 to USD 10.92 billion — about one-sixth of the dollars spent with the mailstream. Newspapers took in USD 42.94 billion, down substantially from the USD 47.71 billion spent in 2006.
For 2008 Coen estimates that total ad spending will grow by 3.7 percent to USD 294.38 billion. expenditures for ad mail will grow at an even stronger pace. Coen predicts that for 2008 advertisers will spend USD 63.73 billion advertising through the mailstream, up 4.5 percent over 2007.
The fact is that advertisers will spend more money on direct mail than on promotions through radio, newspapers, magazines, network television, cable TV or the Internet.
According to the Postal Service consumers read 78 percent of the advertising mail they receive, nearly 10 percent respond to offers, and 21 percent bring coupons and ad mail with them when they shop.
New figures from advertising authority Robert Coen show that advertisers used mail at record levels in 2007.
Mail spending rose 4.0 percent in 2007 to USD 60.998 billion, according to Coen, senior vice president, director of forecasting with Universal McCann, one of the largest advertising agencies in the world,
In the December 2007 issue of his “Insider’s Report,” Coen said that advertisers spent USD 283.88 billion on all media in 2007, a .07 percent increase over 2006. In effect, mail continues to represent one of every five dollars spent by U.S. advertisers.
Coen said Internet advertising increased 20 percent in 2007 to USD 10.92 billion — about one-sixth of the dollars spent with the mailstream. Newspapers took in USD 42.94 billion, down substantially from the USD 47.71 billion spent in 2006.
For 2008 Coen estimates that total ad spending will grow by 3.7 percent to USD 294.38 billion. expenditures for ad mail will grow at an even stronger pace. Coen predicts that for 2008 advertisers will spend USD 63.73 billion advertising through the mailstream, up 4.5 percent over 2007.
The fact is that advertisers will spend more money on direct mail than on promotions through radio, newspapers, magazines, network television, cable TV or the Internet.
The availability of consumer and business data, advanced software, computers and market segmentation allow advertisers to target their messages with great precision. And when messages are carefully targeted, it becomes possible to obtain higher response rates and lower costs per sale. In other words, mail is popular because advertisers get strong returns for each dollar they spend.
According to the Postal Service consumers read 78 percent of the advertising mail they receive, nearly 10 percent respond to offers, and 21 percent bring coupons and ad mail with them when they shop.
The new emphasis on targeting can be seen in ad mail volume:
For example, between fiscal 1996 and 2007, ad mail volume increased from 71.7 billion pieces to 103.516 billion – a huge gain, especially given the growth of email and online communication in general.
What is the future of ad mail? Given universal delivery six days a week as well as competitive pricing, ad mail offers much potential. After all, how else can you securely reach more than 148 million physical addresses?
