Tag: direct mail

Direct Mail Delivers. US direct mail market size

These excerpts appear courtesy of American Printer magazine, a trade magazine serving the commercial printing industry, and the author, John Zarwan.
Among all the bad news for print markets, direct mail remains one bright spot. Annual spending on U.S. direct mail advertising is approximately USD 60 billion a year, and it’s growing at a healthy clip – seven to eight percent a year. In 2005, companies and other groups sent out 100 billion pieces of direct mail, up 16 percent from 86 billion pieces in 1000, according to the United States Postal Service.

Mail is an important medium, one that inspires trust and helps build brand and product awareness. Relative to other media, it is inexpensive and flexible. Direct mail remains a growing medium because of its inherent advantages as well as external events, such as “do not call” legislation, pushing direct marketers toward print communications. As a result, regular mail continues to be the essential tool in communicating with the consumer.

As alternative media become fragmented, direct mail becomes more important. With hundreds of television channels and dwindling newspaper circulations, physical mail is one of the last ways to reach a large number of consumers. Direct mail is an increasingly attractive option as better databases and software allow targeted promotions to individuals based on past purchases in stores and on the Internet. Innovations in inserting and in digital printing make it easier for businesses to personalize direct mail.

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Consumers flood DMA with mail opt-out requests

The Direct Marketing Association (DMA) has received 100,210 requests from consumers to be added to the Mailing Preference Service (MPS), in the wake of last Monday’s news that Royal Mail had suspended a postman for encouraging people to opt out of door-drop deliveries.

This 3.5% increase in direct mail refuseniks takes the number of people signed up to the MPS to more than 3m. The most powerful catalyst spurring people to contact the DMA proved to be GMTV’s coverage of the issue on ITV last Friday, which prompted 31,000 consumers to opt out of direct mail deliveries.

A Royal Mail spokesman would not reveal how many requests it had received from consumers wanting to opt out of unaddressed door-drops, but it is believed that Royal Mail’s website crashed at one point because of the volume of consumers looking for information on door-drops. ‘We operate entirely separately from the DMA,’ said the spokesman. ‘There is no reason why we should publicise those numbers’.

He added that Royal Mail’s website had always had details of how to opt out of door-drops, but accepted that it had not proactively publicised the option.

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Swiss Post acquires majority in German GHP

Swiss Post has bought a majority in German direct marketing and customer management company GHP Holding GmbH, Swiss Post said on July 25, 2006.

Swiss Post has acquired two-thirds in GHP, but has the option to fully take over the German company by the end of 2008.

The purchase price is in the two-digit million euro range.

According to analysts’ estimates, the deal price corresponds to between 11 pct and 15 pct of GHP turnover, or between 30 mln euro (USD37.7 mln) and 40 mln euro (USD50.3 mln). Swiss Post did not comment that.

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UK Royal Mail meets with union over door-drops

Royal Mail is to meet with the Communication Workers Union within the next few weeks to discuss increasing the amount of unaddressed mail carried by the union’s postal worker members. The move would be a breakthrough for door-drop clients frustrated that Royal Mail limits delivery of unaddressed mail to three items a household each week. For Royal Mail to take advantage of growing demand for door-drop media, it first needs to persuade postmen to carry the extra door-drop weight on their rounds. The news emerged at the Direct Marketing Association’s Door Drop Marketing conference, held on June 6, where some speakers criticised Royal Mail, accusing the postal service of inflexibility.

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