Tag: direct mail

Postal Service Feels Weight Of 'Junk Mail'

Posted by | Mar 6, 2008 | |

The souring economy and changing lifestyles are dramatically affecting the U.S. Postal Service. Troubled banks are mailing fewer credit card offers. Declining new-home sales mean vacant houses sitting with empty mailboxes. And as consumers switch to paying bills online, first-class mailings are drying up.

Montgomery proposed “do not mail” legislation late last year, making Maryland one of 18 states to consider such a registry since 2007.

Soon after she filed her bill, she said she was inundated by lobbyists who represent the Postal Service and direct marketing industry. “There was so much pressure against it,” she said. “It turns out the Postal Service is relying on a lot of this junk mail.”

Montgomery withdrew her bill but says she will reintroduce it after more research and a consultation with the state’s attorney general.

Potter talked about the Postal Service’s lobbying efforts against “do not mail.”

It seems unlikely that mail volume will return to previous levels once the economy improves, thanks to shifts in the way Americans are communicating and doing business, Potter said.

To solve its immediate headaches, the Postal Service will reduce labor costs by cutting overtime and using more seasonal workers, Potter said. The service also plans to raise the cost of stamps and premium services in May, taking advantage of major reforms passed by Congress last year that clear the way for annual rate increases. The cost of a first-class stamp will rise a penny, to 42 cents, and will increase every May thereafter, officials said.

Under the reforms passed by Congress, postage for letters can increase no higher than the rate of inflation, but fees for package delivery can be raised to compete with rates charged by FedEx and other private competitors.

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Direct mail figures in Scotland

Posted by | Mar 6, 2008 | |

The modern curse of junk mail may be lifting, as figures revealed direct marketing has slumped to its lowest level this century.

According to the Royal Mail, there are now 800,000 fewer items being delivered annually than at the industry peak in 2003. However, the industry watchdog warned that while this might be welcomed by householders, it could be bad news for the postal service.

Figures from the Royal Mail still showed 4.65 billion items of direct mail dropping through doors last year – down 7.4 per cent year on year.

Trisha Dow, director of Postwatch Scotland, said the drop was “worrying” as it would cost the postal service – but the figure could be an aberration due to industrial action by Royal Mail workers last year. Postal workers went on strike over pay and conditions, leading to a major backlog of mail.

Ms Dow said: “We would say it’s worrying because it’s an element of the mail that helps balance the books. If that drops substantially – and we know there seems to be a growth in electronic marketing – then it’s difficult to say we would be glad of that.

According to the advertising industry, the figures mean firms are getting better at targeting direct mail so that householders only get the type of offers in which they are interested. New methods of getting the message out – such as texts and e-mails – are also taking away some of the direct-mail business.

Robert Keich, a spokesman for industry body the Direct Marketing Agency, said: “There is a much greater use of targeting and precision and taking out ‘gone always’ – people who have left the household.

For its part, Royal Mail believes the internet is creating the biggest dent in its business. Fraser Chisholm, head of media, said: “The internet is a significant threat to direct mail in its current form but it’s a fantastic opportunity for direct mail to re-position itself.”

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Reachmedia – A New Era in Unaddressed Mail

Posted by | Mar 5, 2008 | |

Reachmedia, the new joint venture business between New Zealand Post Limited and Salmat Limited, began operation this week, providing efficient unaddressed mail services throughout New Zealand.

Reachmedia brings together Letterbox Channel and Deltarg Distribution Systems, former subsidiaries of New Zealand Post and Salmat respectively. The two companies are equal shareholders in Reach Media New Zealand Limited, a company formed in late 2007 after the Commerce Commission gave clearance to the joint venture proposal.

Reachmedia Chairman Peter Boyle, of Salmat, says the launch of the new business begins a new era for unaddressed mail services in New Zealand.

“There is huge potential for growth in the use of unaddressed mail for communication with consumers and businesses.” says Mr Boyle. “Reachmedia will work closely with existing clients to improve their return on business goals and objectives. Our experienced staff and the proven expertise in campaign planning inherited by Letterbox Channel and Deltarg will provide the flexibility to ensure the unaddressed mail channel is a simple, and highly effective, tool for our clients.”

Reachmedia Chief Executive Officer Paul Forno says, “We are very excited to launch Reachmedia. We are confident of our ability to grow and we will achieve this by doing things differently to meet evolving market needs. Reachmedia is about constantly challenging the way we operate in the advertising market.”

“Reachmedia’s combined strength and forward-looking approach enables it to offer technology advantages, transport efficiencies and the widest reaching single supplier network in the urban market,” says Mr Forno. “Reachmedia is able to target clients’ sales activity according to consumer preferences, through the company’s leading national and Trans-Tasman consumer research insights.”

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Spir Communication announces closure of Adrexo Mail (FRA)

Posted by | Feb 22, 2008 | |

Spir Communication has announced that it will close Adrexo Mail, its addressed mail distribution arm, after a difficult year. Group net income plunged 43.5 percent to 29.8 million euros in 2007 compared to the same period last year and operation income decreased from 42.5 percent to 44.5 million euros. Turnover increased 10.5 percent to 650.1 million euros.

The company said that its margins and last year’s results have been severely affected by the distribution networks of Adrexo Mail, an activity which was launched last year pending deregulation of the postal market in France and Europe. “This important strategic decision was motivated by the lack of clarity and stability of the market,” Phillippe Leoni, CEO of Spir said at a conference. “Spir stresses that given the lag from the date of full liberalization of the postal marketing in France from January 2009 to January 2011, there is uncertainty.”

He added that the group benefited from the difficult experiences of its European competitors in the market for the distribution of addressed mail. Leoni said that Spir chooses to limit the damage, and as a result this activity has generated an operation loss of around 18 million euros in 2007. The closure of Adrexo Mail will result in a total loss of less than 13 million euros in 2008. Spir expects to keep some activities, such as packages and relay letters, which do not depend on the opening of the postal market. This division has weighted on the results of the mail (distribution of printed matter, packages, catalogues, mail), which saw net operation profit plunge from 61.7 percent to 8.6 million errors despite a 23.4 percent increase in turnover of 303.6 million. The group remains confident in its ability to improve its performance in 2008.

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UAE to witness double-digit growth in direct marketing

Posted by | Feb 18, 2008 | |

The UAE’s booming economy has triggered the rapid growth of the advertising sector, with broadcasting, print, outdoor and cinema adverts all trying to grab the consumer’s attention.

Now a new medium is emerging – one that is less expensive and more focused than conventional channels. Direct marketing (DM) – where the advertising message is sent straight to prospective customers through mailshots, e-mail, SMS and other means – is expected to see double-digit growth in the UAE in the next few years. Ahmad Tahlak, CEO of Emirates Marketing and Promotions (EMP), a subsidiary of Emirates Post, explains what DM has to offer.

EMP has commissioned independent research into the advertising market. How does DM perform when compared with other forms of advertising such as media and outdoor?

What are the particular benefits of DM?

Direct mail and new channels such as SMS, e-mail and one-to-one phone marketing are being used more frequently and offer better value for money than other methods. DM is more meaningful and saves money and time on promotions. Its ability to create value is what makes it different.

Can you give any examples that prove this point?

In the US, the Direct Marketing Association found that each dollar spent on DM generated a return of $11.65 (Dh42.75), compared with a $5.29 return from every dollar spent on other forms of marketing. This clearly demonstrates DM’s return on investment is twice that of other methods. DM generates 10.3 per cent of the US’s gross domestic product and this shows the size and value of its contribution to development.

What is the situation in the UAE?

There are no reliable sources of information on the size or performance of the different DM channels here. But this form of marketing is currently in the development phase, and the market is expected to see double-digit growth over the next couple of years.

Who are the major players in the UAE?

One of EMP’s key focuses is to promote and strengthen DM and direct advertising in the UAE, and also the GCC.

What is EMP’s view of digital advertising, which has been growing but still represents a small part of the advertising sector?

Etisalat has one of the largest penetrations of e-mail account subscribers in the world, which does not indicate that the contribution of digital media is small. The number of mobile phone users, market size and penetration are ranked as among the highest in the world. This means SMS, which is a digital medium, has one of the highest penetrations here. The use of the digital media in EMP’s portfolio rose by the largest amount yet in 2006 and 2007. We believe this segment will continue to rise in the years to come.

What makes DM stand out?

It is more than just a marketing channel – it is a business process and an integrated strategy that deals with customers directly. This is the biggest and single most powerful element, that differentiates it from other methods. We are talking to customers on a one-to-one basis.

How does DM personalise the communication process compared with other types of advertising?

It enables businesses to build mature connections with customers, one at a time, by recognising their individuality and communicating relevant information in a responsible way. In this way it achieves results for both parties involved in the process – the advertiser and the consumer.

Print and broadcasting media have been in the spotlight due to the implementation of auditing to measure their performance. So TV advertising cannot be dismissed.

We are not questioning the power, penetration and reach of other advertising methods. Traditionally, TV has been well-established and powerful. But each channel has its strengths and shortcomings.

So who decides which method is most effective?

Customers decide which medium attracts their attention. But remember – the customer pays for the cost of advertising.

What are the main factors contributing to the growth in

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