Borrell study predicts 39% drop in direct mail spend by 2013

Share this content:
The future of direct mail is threatened by the soaring popularity of e-mail marketing combined with problems facing print and mail delivery, according to a new forecast from Borrell Associates.

Advertising revenue from direct mail is expected to plunge 39%, from $49.7 billion in annual spending in 2008 to $29.8 billion, by the end of 2013, the report added. If the forecast turns out to be right, direct mail would fall from the No. 1 position for ad revenue to No. 4, behind the Internet, broadcast TV and newspapers, it continued.

Researchers think the decline will come as a result of e-mail marketing gaining favor, particularly with small companies, along with a number of problems related to snail mail. Fewer paper catalogs are being delivered and financial services companies are cutting down on credit card offers. At the same time, coupons are being delivered more frequently through e-mail, the Web and in stores. The US Postal Service also experienced unprecedented declines in first-class mail, which carries the freight for lower-priced advertising mail. Furthermore, cutting the frequency of snail mail delivery and increasing postage rates would spell more trouble for direct mail, according to Borrell's report.

“Put all those things together and it's a formula for disaster for the Postal Service and direct mailers,” said Kip Cassino, VP of research at Borrell.

Next Article in Direct Mail

Sign up to our newsletters

Company of the Week

USAData helps businesses find new customers and grow their current customers through a combination of data and digital marketing services, and easy-to-use SaaS technology products. We enrich customer data so businesses can more effectively target and communicate with customers, and connect them with their best look-alike prospects through digital and traditional channels. We make it easy through simple, self-serve applications and APIs, as well as through full-service programs managed by our Data and Digital experts. 

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above