Tag: direct mail

US Direct Mail Spending Forecast Sees 7.5% Icrease

Posted by | Dec 5, 2006 | |

It may be the Internet age, yet consumers should expect old-fashioned direct mail to keep clogging their mailboxes. Marketers’ spending on direct mail will swell 7.5% to USD64 billion next year after growing 8.5% this year, according to respected ad forecaster Robert Coen, who on Monday presented his industry-wide 2007 look-ahead at the annual media conference hosted by UBS. That means direct mail will continue to be one of the fastest-growing ad formats. “More and more mail advertising is being used … and all of this despite the fact that postal rates went up about 5%,” says Coen, forecasting director at media buying agency Universal McCann. Part of its allure, he says, is that it’s easy for marketers to track response rates compared with, for example, a 30-second TV ad. As for the ad spending outlook overall, both Coen and fellow ad forecaster Steve King, CEO of rival media-buying company ZenithOptimedia, say they expect U.S. spending growth to slow in 2007. Coen sees total ad spending next year rising 4.8% to USD298.8 billion. King forecasts 4.2% growth and a total of USD280.2 billion.

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Winterberry Group's White Paper – Vertical Market Trends in Direct Mail 2006

Posted by | Dec 1, 2006 | |

The direct mail marketing industry enjoyed another year of robust growth in 2006 as total spending on U.S. direct mail services reached USD 60.6 billion, an increase of 7.5 percent from 2005 estimates. A number of factors—including the relative ease with which mailers absorbed a 5.4 percent postal rate hike and the lack of high-performing alternative channels—helped maintain this solid pace of growth, despite the emergence of several significant marketplace constraints, including increases in raw material and logistics costs.

Winterberry Group (WG) projects that direct mail investment growth will continue to outpace growth in traditional “above-the-line” advertising, but will slow slightly in 2007 and beyond. We project overall spending on direct mail services will reach USD 73.6 billion by 2009, reflecting a compound annual growth of 6.8 percent per year for the 2005 to 2009 period.

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Study: Our lives in digital times

Posted by | Nov 10, 2006 | |

Digital technology did not create “the paperless society” that many had predicted, at least not yet, but it does have people communicating more than ever, according to a new assessment of the impact of information and communications technologies (ICTs).

The study, published today in the Connectedness Series, examines some of the expected outcomes expressed about the widespread use of ICTs in everyday life when these technologies were introduced, and shows that some of them have so far not materialized.

It finds that some of the key outcomes of ICTs are manifested in shifting behavioural patterns, including communication and spending. For example, patterns of communication are changing and people are talking on the phone and using email more than they ever have.

The arrival of the personal computer gave much talk to the “paperless office”. However, between 1983 and 2003, consumption of paper for printing and writing alone more than doubled, according to the study, entitled “Our lives in digital times”.

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Direct Marketing – Unwanted nuisance or useful service?

Posted by | Oct 19, 2006 | |

As Royal Mail lifts the cap, Philip Chadwick finds out if we will be flooded with wasteful junk.

Judging by the current barrage of negative press, the direct mail industry should be feeling more beleaguered than England football coach Steve McLaren.

And just when it thought things couldn’t get any worse, last Monday the Local Government Association (LGA) waded into the furore, which began when Royal Mail announced plans to scrap the cap on unaddressed mail (PrintWeek, 3 August). Reports suggest that the LGA’s chair, Lord Bruce-Lockhart, had written to the Royal Mail arguing that such a move could leave council tax payers facing larger bills.

The LGA indicated it had ‘grave concerns’ about the plans, which would cause ‘unnecessary rubbish’. It claims 78,000 tonnes of ‘junk mail’ reach landfill sites each year and the cost of disposing waste has risen in the past year by pounds 205m.

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DMA's 2006 'Power of Direct Marketing' Reports

Posted by | Oct 17, 2006 | |

Despite a US economy that shows signs of decline in some key areas, growth is predicted in direct marketing (DM) expenditures, sales, ROI, and employment through 2007, as reported in The Power of Direct Marketing, the Direct Marketing Association’s (DMA) annual forecast of direct marketing’s economic impact on the US economy, including advertising expenditures and sales. The 2006 edition of the DMA report, which has been ongoing since 1995, was released today.

The USD166.5 billion in DM advertising expenditures marketers are predicted to lay out in 2006 represents a solid 6 percent gain over 2005 spending. According to the report, marketing expenditures this year were part of a strong rebound from Hurricanes Katrina and Rita, after these storms postponed expenditures in many economic sectors from late 2005 into the first half of 2006.

The growth rate in DM expenditure through 2007 is expected to moderate further to 5.2 percent, translating to USD175.2 billion in direct marketing spending for 2007, according to DMA’s report.

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