Direct mail ad revenue is on the rise
By Mark Haslan
Overnight Prints

 

 

 

Mintel Comperemedia recently reported that direct mail volumes are on the rise, a sign that many businesses are renewing their marketing efforts after the economic recession caused many to focus on customer retention rather than acquisition.

 

Now, it seems this trend toward direct mail marketing will continue. A recent report from research firm MagnaGlobal indicates that direct mail will account for $19.17 billion in advertising revenue during 2010. This figure makes direct mail the top revenue generator tracked by the firm.

 

This indicates mailers defy the general slowdown of other forms of direct media, including Yellow Pages, directories, and lead generation. During 2008 and 2009, the category rose sharply, with direct media collectively accounting for more than 25 percent of ad revenues in the United States. However, in the first quarter of 2010, many of the sub-sectors showed slower-than-anticipated growth.

 

The slowdown could be parially due to larger corporations shifting to new media. MagnaGlobal notes that direct media is still used by small and mid-size businesses. Additionally, with congressional elections in November and the Olympics earlier in the year, television spend was up considerably, resulting in less marketing dollars being put into direct media.

 

MagnaGlobal projects that direct media growth will resume over the long-term as the economy continues to improve. Should the firm’s forecasts hold true, direct mail revenue will increase by nearly half a million in 2011 to $19.6 billion, accounting for 11.4 percent of total ad expenditures.

 

Meanwhile, the greater advertising industry is seeing a spectacular bounce back, with MagnaGlobal expecting media suppliers to generate $169.9 billion in revenues. In response, the overall ad industry is now predicted to increase by 2.1 percent. Earlier in 2010, MagnaGlobal had predicted a 1.6 percent growth. Television is the largest format, while online is on the rise as well.

 

For many consumers, postal mail largely influences their purchase decisions, which is why many business owners are increasing their direct mail budgets. A recent survey conducted by marketing firm Fleishman-Hillard found that postal mail is the most important source of information for many Americans, with 10 percent of U.S consumers deeming it "absolutely essential" or "extremely important." Additionally, the average consumer spends two hours per week on average reading direct mail pieces.

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